I used to spend $1,000 a month on travel, now it's going to retirement - Business Insider

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'To follow Warren Buffett's famous advice, I'm being greedy when others are fearful. You can look at a market crash as a sign to stop investing, or you can look at it as a discount on stocks that will almost surely go back up in value again.'

However, there are some conditions in place that allow me to make this decision. First of all, I have a healthy emergency fund and very few fixed costs. This alone provides me with a good level of financial security. When needed, I am able to cut my costs down very low, and I have enough money in a. This gives me plenty of time to weather this downturn and future changes in the market.

I don't pick stocks, and I don't plan to start doing so in the midst of a financial crisis. Instead, I prefer to. These are diversified, by design, and passively managed, meaning I can check in on them every few months and otherwise leave them be. I invest in index funds through Vanguard and follow the three-fund portfolio approach, which dictates that you spread your money out between a domestic stock "total market" index fund, an international stock "total market" index fund, and a bond "total market" index fund. I'll be focused on investing more in stocks.

Chances are high that we've not yet seen the worst of this. The stock market will likely continue to lose value as businesses remain shuttered. There's reason behind the fear that if you funnel your money into the stock market right now, it will lose value almost immediately — it probably will. However, no one can predict when, exactly, the stock market will bottom out. Even if you lose value immediately on your investments, the value you'll gain by getting in early once the stock market starts to recover will likely outweigh that loss.

 

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