We started investing seriously in April 2018 and literally started off with $20. As our finances slowly improved I was able to invest more and more as our debt decreased and while interest rates were low everything was coming up roses and looking positive and then …. Covid hit!

Markets dropped and recoiled which was quickly followed by a reasonably quick market recovery. Unfortunately production was limited due to various government policies and led to job losses and businesses having to close up or scale back. Examples in New Zealand are obviously retail, tourism and hospitality.

Governments around the world turned to printing money to keep their economies afloat which has now led to massive inflation and interest rates rises. House prices have now hit the wall and most people are going backwards financially. Bring in a war between Russia and Ukraine and all of a sudden you’ve got increased oil prices which increases the cost of most goods and services and businesses having to raise prices in order to survive.

In terms of investments? Well we had a good run from 2019 through to 2021 while interest rates were low but now the chickens have come home to roost so to speak. Here’s our current investment income gains/losses for each calendar year in the last 4 years since we started tracking this:

Obviously 2022 has been a bit of a shocker not for just ourselves but pretty much most people on the planet. Unfortunately no one can predict the market and in some years you will make less than you put in but history has proven that overall you should be receiving a return of between 8 – 10% over the long term (assuming you invest into the stock market).

Our goal is to build this amount up so it at the very least it covers our expenses. This is not a quick 5 minute solution however and requires commitment, time, sacrifice and hard work in order to achieve the goal. Once that goal has been reached we are then in a position to re-evaluate what we want to do next (i.e. work part time, quit working, do something else) or whatever that might look like. It may be very carry on working full time but we will have more options at that point. People generally are good at burying their heads in the sand when it comes to financial matters and worry about it later. The funny thing is eventually that later turns up and retirement stares them in the face.

We are still investing and will continue to invest in the meantime. Utilizing dollar cost averaging means even as the market is going down we are still able to buy stocks and investments at a lower price. With Covid restrictions starting to ease and an eventual end to the Russia/Ukraine conflict there will some kind of return to “normal”. They’ll call it a new normal but it reality life moves on regardless. Think of Germany back in 1939 and the impact of that on neighbouring countries at the time. Of course that dragged on for a number of years. Not ideal!

So here we are in 2022 with the markets looking unfavourable, rising interest rates, rising inflation, and investment balances crumbling. What to do?

Here’s what we’re going to do:

1). Not panic …

2). Get some more supplies (e.g. Canned food, dried food) that can be stored long term in case things get even worse – it’s better to be prepared that not be prepared …

3). Keep investing!

So, keep you head up, come up with a plan, live frugally and make smart financial and life decisions !