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How I started investing.

January 7th, 2011 at 03:46 pm

I was never taught anything about investing when I was younger. When we moved up here to the mountains from Florida, we lived in travel trailer for almost a year. My husband spent the year building our house completely by himself.
I looked for a job, but I was not a local, so no one would hire me in this small town.
The only job I could get was as a waitress, making $2.01 an hour. Tips were few and far between because the locals did not tip. On a good day, you might make $20 a day.
For a year, we lived on our savings. By then, I was interested in learning how to invest our money in something other than a bank.
I went to the library to look for books on investing. Back then, the library had NO books on the subject.

So, I started buying and reading money magazine. The magazine had lots of articles on mutual funds. After about 6 months of reading, I decided on my first mutual fund. It was a Twentieth Century fund called Heritage. I chose it because it was a no low fund and it had no minimum investment. (The name was changed to American Century Heritage)

Every night, I would come home from work and put at least 10% of all my tips in a small wooden box on my desk. When I accumulated some cash, I would send it off to my Heritage mutual funds. I eventually opened other mutual funds and then took the plunge to actually buy stocks.

Many of my other funds are at Vanguard cause I like there low expenses, but I still have my original Heritage fund. It has grown from $6800 (amount I put in it) to $48,667. The average annual return is 10.73%

I saved $5 using my bi lo card yesterday, so I am adding that to the $20 challenge.

Prev. total $592.00
today 5.00
new total $597.00 p.s. I meant no load fund.

11 Responses to “How I started investing.”

  1. Homebody Says:
    1294416093

    You are really smart Julie!

  2. Petunia 100 Says:
    1294417942

    My first mutual fund was Twentieth Century Select! I would watch it every day and freak out on days it dropped. I was young and didn't know much about investing either.

    I don't still have mine. I stick to index funds whenever possible now. Like you, I love Vanguard.

  3. creditcardfree Says:
    1294418763

    Thanks for sharing!!

  4. patientsaver Says:
    1294418894

    I'm confused.

    I thought you said in an earlier post that you don't trust stock and bond mutual funds. You said all your money was in bank CDs and I suggested you needed equity mutual funds for growth.

  5. Apprentice Bliss Hunter Says:
    1294422419

    Thanks for sharing that !

  6. patientsaver Says:
    1294428308

    Ima, I just reread your comment on your earlier post and I see that I didn't read it very carefully the first time! Sorry...was multitasking!

  7. Ima saver Says:
    1294432013

    No, patientsaver, I have been in stock mutual funds for many, many years. I also took the plunge into buying individual stocks for a few years. I still have the stocks (some of them) but I really prefer investing in Vanguard Index stock funds. All of my IRA's and roth's are in Vanguard 500 Index. I think I should probably get into an International fund now.

  8. SavingsQueen Says:
    1294441794

    I love reading about your progression as an investor. Also, I appreciate how carefully you managed and continue to manage your money. I used to have our 401Ks in mutual funds but I read a couple of books about the "coming" stock market crash and pulled our funds back to cash just before the big bust happened. I felt pretty smart back then as I took no losses, but now I am scared to death and missed the stock market's upswing since I was out of the market. I have some 6% Bonds, some bond funds which have been returning around 6-7%, some Matthews China mutual fund, a bit of Apple stock purchased recently and lots of cash just sitting there doing nothing. That is one of my goals this year...to sort it all out and make myself get back in, although I view the stock market a bit like gambling and it now scares me a bit. We were very hurt in the 2001 high tech crash, although we did leave our money in and the market came back up again a few years later.

  9. frugaltexan75 Says:
    1294446157

    Until a week or so ago, the only investing I'd ever done was mutual funds/IRA's/401K's. I finally took the plunge into the stock market. I haven't checked it since - too scared to. Smile I'm planning on leaving it in long term, so I'm not worried about fluctuations.

  10. Ima saver Says:
    1294510003

    I too, got hurt in the 2001 crash. That is why I have been keeping so much in cash to build spec houses. It wasn't a bad idea when C.D.'s were paying 4 to 5 percent.

  11. OceanBlue Says:
    1294627421

    I love reading about how you got into investing. It's so inspiring!

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