So, I did it... I took the plunge and upped my automatic savings by another $100. I decided I would increase my cash-value life insurance contributions so that I can hopefully cover this no problem, even when I'm in grad school. I think I may even be able to do more... but I want to wait it out and see.
The one blessing of not having a lot of money in these times, as I told my advisor yesterday, is not having to worry so much about the right balance of your portfolio. When you only have a little teensy bit in the market, there’s just not that much nuance you can introduce. But for the future, I do want to re-evaluate my entire portfolio of assets and get a sober assessment of the right balance. I recently found a quick list of resources to help you do just that on your own.
Step 1: Break down all of your assets into three major categories; stocks, bonds and cash.
Step 2: Use Morningstar’s free Instant X-Ray tool (Morningstar.com/goto/instantxray) to display the assets in a pie chart.
Step 3: Decide your target allocation and shift from investments you’re overweighted in to those you’re light on.
Rinse and repeat annually. I think the categorization will be enlightening for me for instance, because often, even when I have my money in many different places, they all might fall into the same category.
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