The Money Muse

A new year. A new administration. 2025 kicked off with uncertainty and chaos, and that is certainly reflected in my portfolio. Despite the insanity that is going on right now, I’m committed to sticking with my investing strategy. I’m going to continue aggressively funding my three-fund portfolio, heavily weighted by VTI, and will ride this out. Downturns are never fun, but I know that this is when we as investors build wealth.

Let’s dive in:

• Income. My after-tax income for Q1 2025 was $14K. About 87% of this was from my salaried job, and the remaining 13% was from my Etsy shop. Q1 on Etsy started a little slower than I was expecting, and I’m actually behind where I was at this time last year. This is disappointing, and I still have plans to see about trying my products on my own site and not on Etsy. I also can’t help but wonder if the state of the stock market and economic fears generally are contributing to this decline.
• Investment contributions. Before taxes, I contributed $1.8K to my 401(K), including an employer match. From my after-tax income, I put $1.7K into my Roth IRA and $5K into my brokerage account. In total, I invested 48% of my after-tax income in Q1 of 2025. This is a high percentage of my income – I normally aim for around 50% (the Money Guys recommend 25%). For the most part, I invest my money in VTI, Vanguard’s total stock market ETF. This move was inspired by JL Collins’ Simple Path to Wealth (a great personal finance book that I highly recommend!). 
• Investment performance. This one is a bit of a doozy (and believe me, it’s even worse as I type this on April 8, 2025). My net worth decreased $2.8K (-1%) in Q1 of 2025, with my Roth IRA experiencing the highest percentage decrease (-2%), followed by my 401(k) (-1.4%), and my taxable brokerage (-1.2%). This is disappointing, but I know this is a chance to buy low – an opportunity that has rarely presented itself in the last few years.
• Future plans and goals. For the most part, my personal finance journey has been a fun one. There have been ups and downs, and luckily for me the ups have come with more frequency than the downs. Right now however, we’re decidedly in one of those down periods, which isn’t fun. My goal for Q2 of 2025 is to keep going, and try not to let the stock market impact my mood too much. I need to remember that ultimately, this downturn should be good for my portfolio. I’ll reap the rewards of my consistency on the other side.

Despite the volatility and challenges that 2025 has thrown at investors so far, I’m staying committed to my long-term investing strategy. Downturns are inevitable, but they offer valuable opportunities to buy low and build wealth. I know that staying the course, keeping my focus on consistent contributions, and maintaining my patience will pay off in the long run. Even though the market’s uncertainty may be unsettling at times, I’m confident that by sticking to my plan, I’ll continue to make progress toward my financial goals. The key is to stay disciplined, keep investing, and trust that the rewards will come when the market rebounds.