That's what I do with the 10% of my net salary

January 28, 2020

This article should NOT be interpreted as if I was giving any financial advice. It should rather be seen as a way to crystallize my recent decision, more for my own memory than for a wide audience outreach. 


I am all about differentiation and working towards the creation of multiple sources of income, be those high return ones or less decisive ones.


Yes of course there is my SES salary. And yes of course there are the dividends coming from Elite Circle. But what else? Two income streams are not sufficient to feel safe.


On one side, with my wife we have decided that instead of buying birthday gifts to each other, we order ourselves some gold - always fair-trade gold, as we are both very aware of the shitty place our world is turning into. We do so because of the natural increase in the value of that precious metal on the long run... but the main driver I would say is the decision to not create more unnecessary waste/pollution/whatsoever related to gifts-production, as well as perhaps the ease of mind deriving from knowing already what to buy to the partner...


On the other side, we have also decided to put a 10% artificial "tax" on our net salary and to simply ignore that we are even earning it. With this 10%, we invest in a passive fund tracking the S&P 500 index. We both believe that the world is not going to end... and therefore the top companies are going to grow on average in the future. (As Warren Buffett said, the only reason not to bet on the S&P 500 is if you believe that the world is going to end soon).

One could argue that the stock market is very volatile and that we are heading towards a recession... well, who cares. On the long run, the economy of the world is always going to go up. So we take our 10% out of our net salary on a monthly basis and blindly put into the S&P 500 tracking fund. And forget about it. We'll check it in 10-15 year. Or 20...


Should you do the same? I don't know and frankly I do not want to suggest anything other the fact that we should ALL do our best to create 4-5 sources of income, because putting all eggs in one basket is always the worst possible idea.

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