Calm down and ignore the noise

It is very easy to be an emotional investor. Trust me this is not good for your mental health. It will lead to anxiety and stress.

Disclaimer – I am not a mental health professional. And I am not giving out any advice. This blog is for information only from my experience.

As I have mentioned previously, single shares are not for me. This led me to index investing – index funds.

My strategy with investing is long-term buy and hold. This is very apparent if you read the DUFFMONEY blog or listen to the DUFFMONEY podcast – DUFFMONEY podcast.

But I do believe in investing in crypto assets. Or at least getting familiar with crypto assets. Things are moving fast and it is my belief that it is important to learn about digital assets.

This comes with a little warning. It is easy to get excited with your crypto assets. If you get to a point where you are checking your crypto every 5 minutes, it’s time to change. Have a little word with yourself and try and ignore the noise.

Aligning crypto with my long-term investment goals

Just to be transparent, I’ve been getting too excited and too emotional over my crypto assets recently. But eventually, I learn my lessons and have managed to cash out on the gains of one of my crypto tokens – Crypto cash out.

What I did with the £5k from my cash out, is to put it into DUFF PROPERTIES. This aligns with my long-term goal of building a successful property business.

The perfect scenario for me is to take 50% out of a particular token and then forget about it. Then I’m not checking on it every 5 mins and getting stressed out. I can ignore the noise. Ignore what’s going on in the crypto world.

The majority of profits made will go towards DUFF PROPERTIES. Crypto wise, my long-term goal is to buy and hold Ethereum (ETH).

What this means is that crypto has slightly altered my long-term investment goals. They were long-term buy and hold with property and index investing. Now, they are long-term buy and hold with property, index investing and ETH.

Depending on who you talk to in the Crypto world, ETH has the potential to overtake Bitcoin (BTC) as a store of value – Goldman Sachs on ETH.

DUFFMONEY’s understanding of ETH

Blockchain is a secure and shared database that stores transactions. The data is stored in sections known as blocks and these blocks create a chain of data.

Blockchains are a thousand times faster than transactions made on stock markets. Like GOOGLE, the ETH blockchain technology is about big data. The more storage and processing on offer, the better. And blockchain has laid the foundation for a completely new way of protecting individual data and conducting online business.

Unlike BTC, ETH is not just about digital currency. ETH offers more applications and this could be a reason why some are suggesting it might overtake BTC.

For example, ETH can be used to create a binding contract between 2 or more parties. It can also be used to transfer digital goods like music or video.

In the past, I have been guilty of investing without doing the necessary research. This isn’t the case with ETH and I believe it is a good long-term investment.

A way of understanding crypto assets is to read the white paper:

In general, there are three types of applications on top of Ethereum. The first category is financial applications, providing users with more powerful ways of managing and entering into contracts using their money. This includes sub-currencies, financial derivatives, hedging contracts, savings wallets, wills, and ultimately even some classes of full-scale employment contracts. The second category is semi-financial applications, where money is involved but there is also a heavy non-monetary side to what is being done; a perfect example is self-enforcing bounties for solutions to computational problems. Finally, there are applications such as online voting and decentralized governance that are not financial at all.

The above is taken from the Ethereum website within the white paper. Being aware of the applications helps you to understand the crypto asset in question.

See below for additional applications:

  • Savings wallets
  • Crop insurance
  • Decentralised data feed
  • Smart multisignature escrow
  • Cloud computing
  • Peer-to-peer gambling
  • Prediction markets

What to do

From my experience, getting some much-needed financial literacy can benefit you and your investments. It will help you to make educated investment decisions and decide on your long-term strategy. We all want to make quick money, but normally this doesn’t happen.

Don’t just steam in and expect to be a crypto millionaire and get stressed out when it doesn’t happen. Stick to the plan (Stick to your own game) and ignore the noise. It helps you to avoid stress. The stress that comes when you check on your investments every 5 minutes.

Personally, I do want to become financially independent. But I don’t want to be stressed out in the process. And from my experience, the way to do this is to get a financial plan in-place. With some discipline, it’s then time to take a long-term view of your investments.

Book of the week: Ethereum, by Henning Diedrich. You will learn all about blockchains, digital currencies and smart contracts. Focusing on Ethereum, this book explains how blockchains might just revolutionise society and commerce.

For a hard copy visit the excellent Imagined Things Bookshop:


DUFFMONEY and index investing

Index investing suits DUFFMONEY as it is passive and stress free. It is very much set and forget (Set and forget).  This proven method will help you to build your wealth and give you financial freedom. This is not easy. It takes dedication and discipline.

DISCLAIMER – I am not a financial expert and am not offering expert advice. This is just a way of investing that suits me.

Up until 2018 I had no financial plan in-place. I was heading for no retirement or a very poor retirement. It’s easy to live for today and forget about what happens tomorrow or a few years down the line. DUFFMONEY is about living for today and planning for the future. After all, life is about balance.

Vangaurd Index funds

Before going any further, I would recommend you do your own research. I t is very important to get some financial literacy and to understand your relationship with money.

Index Investing – made famous by John Bogle (founder of Vanguard). This is where you track the stock market. You have a small slice of several companies within your fund.

After reading a couple of books on money, I stumbled across John Bogle and his excellent book, The Little Book of Common Sense Investing.

With this book, I learned how to avoid heavy costs charged by some fund managers. This isn’t the case with Vanguard as the costs are very low. Vanguard was founded in the USA by John Bogle and offers low-cost index-tracking funds. The book also gave me the knowledge to understand index investing.

Index-tracking is a way of tracking the entire stock market. If you invest in the US in the S+P 500 (basically 500 of the biggest US companies) you are aiming to match the performance of the entire market. If the S+P 500 return’s 7% in a given year, your fund should return 7%. Your Vangaurd fund manager will have picked several of the top performing companies within the S+P 500 – again a small slice of several companies.

DUFFMONEY’s experience of index investing

My Life Strategy 80 20 fund is made up of 80% shares and 20% bonds. This is fairly high risk but I intend to invest for a long time so am happy to ride the inevitable ups and downs. To determine your risk tolerance, speak to a financial advisor.

Or do what I done and do a bit of self-education. Read the books, listen to the podcasts and watch the YouTube videos. All the information you need can be accessed for free online – you just have to be driven enough. Put the graft in now and you will thank yourself when your having a few beers on the beach in Benidorm. Or is that just me?

Let us have a look at how my LS 80 20 fund has performed over the last 12 months. See below for a summary:

  • LS 8020 May 2020 to May 2021
  • Current fund value – £23,800
  • Rate of return – 20.93%
  • Current contribution – £900 pcm

That 20.93% rate of return is much better than the less than 1% I would have achieved in a high st bank. But I’m under no illusion that this will be maintained. It’s possible but very unlikely.

What would happen if this return was maintained for the next 12 years? Well, I would be a very happy 50-year-old!

If the 20.93% was maintained for 12 years, I would have £857,779 in the vanguard pot. That is IF the interest was 20.93% every year and IF I invested £900 pcm. Two very big Ifs if I’m being honest.

I know this is VERY hypothetical, but I want to demonstrate compound interest. In the above example, the total deposit is £153,400. The interest earned is £704,379 and this demonstrates the power of compound interest.

Let us be a little more realistic. In reality, I will more than likely earn 7% per year over the next 12 years. If you read DUFFMONEY regularly, you will know that I am convinced that 7-8% is achievable if you have a diversified fund and track the markets. This is from reading books like How to own the world, by Andrew Craig.

With a return of 7% every year (on average), and after investing £900 pcm, I would end up with a pot of £257,220. This is with deposits of £153,400 and interest earned is £103,820. Although on a lesser scale, this still demonstrates the power of compound interest.

What to do

First of all, try to understand your relationship with money. You can see how I done it at DUFFMONEY with some much needed Money Mindset.

Then get some financial literacy and you can do that with books or podcasts. Basically, anyway you can that will absorb enough information. Then you can go and make educated investing decisions.

Finally look into index investing. It’s not get rich quick which most people prefer but I believe it will add to your long-term wealth. My 20% return might just grab your attention. But the more you look into it you know that it will be more than likely 7-8%. This is depending on which fund you decide to go with.

Good luck! My sincere hope is that you can learn from DUFFMONEY and it pushes you to go out and do your own research. And you go out and get some financial literacy that will help you put a financial plan in-place.   

Book of the week: How to Own the World, by Andrew Craig. This book will help you to decide where to put your money. It is designed for the UK investor and is well worth a read.

For a hard copy visit the excellent Imagined Things Bookshop: