What 100 Straight Months of Investing Taught Me

I have invested for 100 straight months. That is more than eight years without a missed month. The biggest thing it taught me is not about picking the right investment. It is about consistency, and staying in the game long enough to see your earliest money grow up.

This is my experience, not investment advice. What and how much you invest depends on your own situation.

The snowball is real, and it is boring

It showed me that the snowball effect of compounding is real. Compounding means your gains start earning gains of their own, so growth builds on top of growth over time.

In those early months, you get into the habit of checking your accounts all the time to see how much you grew and whether there is any profit there. Then you realize it is a very boring game, similar to watching paint dry. That is normal. The early months are when the snowball is smallest.

Put it on autopay

Over the longer term, it showed me that every expense we have works better on autopay. Many vendors and companies will even incentivize you with discounts or rewards just for being on autopay, because they know the power of consistency and predictable revenue.

Our investment accounts are no different. When the contribution happens automatically, consistency stops depending on how you feel that month.

There will be times when investing may not be viable, or the amount may need to come down so it does not disrupt your household. That is fine. Lowering the amount for a season is different from stopping and walking away. I wrote about building that kind of habit while saving for my first investment property.

Stay in the game long enough

Overall, 100 straight months of investing taught me that you have got to stay in the game long enough to see your earliest money grow up.

Think of a child you knew in kindergarten. When you are around that person every single day, it is hard to appreciate their growth. You see them grow an inch at a time and their face change a little at a time. But if it is a child you have not seen in 20 years, and you see them again as a full-grown adult, you are amazed by how much they have grown.

Money is like that. It is hard to appreciate up close, month to month. Over time, you can be amazed by how much something can grow, as long as you do not interrupt its growth.

The next step is understanding your accounts

It also taught me how important it is to understand the differences between all the accounts available to American investors. Most of what you learn early on is that diversification and consistency are the first step. The longer step is understanding the tax implications, tax-loss harvesting and being able to borrow against your portfolio when necessary.

A few plain definitions:

• Common account types include a regular taxable brokerage account, traditional and Roth IRAs, and employer plans like a 401(k), 403(b) or the TSP. Each is taxed differently.
• Tax-loss harvesting means selling an investment at a loss to offset taxable gains elsewhere. It applies in taxable accounts, and there are rules about buying the same investment back too soon.
• Borrowing against a portfolio means taking a loan with your investments as collateral. It can provide cash without selling, but if the investments drop, the lender can require you to pay down the loan or sell.

The rules on all of these change and depend on your situation, so a tax professional or financial advisor is the right person to walk through them with you.

Consistency first

None of this needs perfect timing. It needs a habit you do not interrupt. If you are building toward your first property, read Can You Own a Rental While Working Full Time?

When you are ready to put that consistency toward real estate, start at findablackagent.com.