This chart shows the month-by-month performance of my investment portfolio for 2025. My portfolio made money in two ways. 1.) Change in share price. This is what you hear about in the news when they say the market went up or down. When I go to sell shares, this is the price I’ll be able to get. 2.) Dividends. Regardless of share price, my index funds make CASH DEPOSITS to my account throughout the year. These are payouts from the profits of underlying companies. I get these just for being an owner. In 2025 I got paid over $70,000 in dividends without having to sell a share. It’s the golden egg always being laid by my golden goose.

This year is a good microcosm of how the stock market works over time. It feels like kind of a chaotic ride at times. During the 3 month tariff trade war scare in the spring, I lost over $150,000! OUCH. If I sat there and let that freak me out, I would immediately exit from the market (I heard from many who did sell during that time). But what did I do? Absolutely nothing. I just sat on my index funds, and let the golden goose keep laying those dividend eggs. And what happened to the share price? Over the rest of the year I was up almost HALF A MILLION DOLLARS. Just for doing nothing.

This is how it works. A bumpy road. Some big down days, months, years. But lots of slow chugging away along the way. Plus, you get the dividends. If your portfolio gets big enough, you can simply live off dividends indefinitely and you don’t even need to be concerned about share price. (Side note, for reasons beyond the scope of this caption, I don’t chase dividends or try to buy high dividend producing stocks or index funds).

Remember none of these gains from “trading” or any form of speculating or stock picking. I simply buy, buy, buy index funds. Buy low, buy high accumulate more shares over time and let compound growth do it’s work which you can see in action here.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy