The $19,949 Reality Check

It was 1997. I was 26 years old and a new transplant to New York City. Wide-eyed and bushy-tailed, eager to work, but my marketable skills (typing speed 80 wpm) weren’t as valuable as I imagined.

I was also in debt. Not the investment-type of debt that has a potential ROI (return on investment). I owed money on credit cards. Even though some of the purchases had been necessary - like suits for job interviews - almost all of it was for dumb shit that had no lasting value or usefulness. 

I thought I was savvy, but reality decided to check me. My critical mistake was budgeting based on making minimum payments. Sure enough, the interest became impossible to keep up with and I started swirling around the rim. I reached out to a debt consolidation company and the counselor told me to add up what I owed.

“What?” I wanted a lifeboat, not to look at my pain.

The counselor said that was the first step and it was non-negotiable.

I swallowed hard, gathered my statements, and added up all the balances. It shocked me: cough $19,949! Back in 1997, that was a whole year’s pay for me.

Despite the shock, it made the flood stop running into my lungs and I could actually take a breath. The program negotiated with my creditors for lower interest rates. If I stayed true to the payment schedule, I’d be debt free in 60 months.

Fifty-seven months later, I was.

During that time, the dot-com craze was happening. Every day, some hairdresser or file clerk was featured in the news for making millions investing in dot-coms. 

I’d heard my dad talking about the Dow Jones and S&P 500 from the time I was in diapers, so honestly, I was furious and envious like crazy. How could all these everyday people make so much money overnight? 

My choices for learning were college (couldn’t afford it), the library (didn’t have a library card yet), and the bookstore.

I took the subway to Fulton Street to Strand Books. I sorted through three piles of business and investing books up to my knees. I parked myself in a chair with the stacks, thumbed through every single book until I decided on two with the most understandable and methodical approaches to investing.

I also attended financial seminars. Every single one of the presenters said, “If you'd invested $10,000 in the Dow Jones back in 196X, and held onto it for thirty years, reinvesting dividends, you'd have such-n-such fortune.” I sat there dumbfounded. Where would someone like me get $10,000 to start?

Enter the online brokers. They let people begin with $250, and a ray of sunlit hope filled my entire being. “$250? I can do that!”

So I opened an account and sent $10 or $20 every paycheck.

In the meantime, I began observing my world for potential investment opportunities.

I frequented Starbucks everyday and knew it was a publicly traded company, ticker symbol SBUX. It turned out that Howard Schultz, the CEO, had written a book, Pour Your Heart Into It. He wrote about his money-strapped beginnings growing up in the projects in Canarsie to seeing tremendous growth potential in Starbucks to developing a vision and plan to replicate the coffee culture of Italy in America. That was at a time when Americans settled for a fifty-cent cup of poor quality coffee. I knew one thing: Schultz was visionary and onto something.

Several weeks later, the operations manager and I were still at work after hours. My online brokerage account finally reached $250. I placed my first trade and let out a cheer. 

The manager called out, "What are you doing over there?"

"I just placed my first stock order!"

"What'd you buy?"

"Starbucks," I said.

"How much?"

"75."

"75 shares?" she asked.

"Nope," I said. "Dollars worth. I got 2 shares."

Lord, did she let out a howl of laughter.

"Hey, I ain't rich," I said, shrugging it off. I had a plan, a mission, and deep resolve.

She got real quiet for a few moments. “I'm not rich either.” She came over to my desk. "Show me what you're doing."

Myth: You need thousands to start investing.

The Truth: The days of $10,000 minimum investments are long gone. What you really need is courage to start, not oodles of capital. Consistency gives you the edge to create oodles of capital.

Action: Begin your own observations right where you are. Where are people lining up to shop? What brands are people buying? Take note and look up if the companies are publicly traded. How much does a single share cost?

The forward path

Eventually, 1997 vanished into the rear view mirror. Since then, I’ve made numerous investments, changed careers, grew my income, bought a dream car, lost a job, started a business, faced a medical emergency... and circumstances have, honestly, landed me back in debt.

If you’re also facing a mountain that needs moving, then take this journey with me. Step by step, up we go! I’ll document my wins, setbacks, and lessons right here.

If you're ready to join me, your mission this week is simple:

No judgment—just the numbers.

Have you done your own assets and liabilities inventory yet? Hit reply and type 'YES' or 'NOT YET.' I read every email and this helps me know what to write about in upcoming issues.

P.S. The book that gave me financial foundation is The Art and Science of Successful Investing by Todd Leigh Mayo.

To rising joyfully,

April

Disclosures & Disclaimers

I am not a licensed financial advisor, attorney, accountant, or credit counselor. The content provided in Joyful Rising Money IQ is for educational and informational purposes only and should not be construed as professional financial advice.
The information presented is based on my personal experience and research and may not be suitable for your specific situation. You should consult with a qualified professional before making any financial decisions or changes to your strategy.
Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal.
This publication may contain affiliate links. If you purchase through these links, I may earn a commission at no extra cost to you. This supports the creation of free content.