When we decided to get the roof re-shingled on the house last month I wanted to try and take advantage of the low interest rates and back up the cost of shingles with some money to invest and hopefully pay for the roof. We got a HELOC for 10x the amount it would cost to get the roof done.
With 10% of the capital used to get the roof done I had 90% remaining to try and earn back that 10%.
10% would normally be a decent annual return. I figured it would probably take a year (if I was lucky) to pay off the roof.
I’m happy to report that as of Friday the strategy has worked and I’m in the positive.
Trying to more actively trade stocks has been kind of a fun activity. The psychology can be a lot like gambling where the highs and lows can produce addictive emotional swings. Also like gambling the key is to know when to walk away with your winnings.
Perhaps the most enlightening part of the experience has been the contrast between the amount of money gained or lost on a daily basis in the markets vs. my pay cheque. One day last week I was up more than a month’s worth of income. Time for money vs money for more money plays by a very different set of rules.