Unless you’ve been under a rock for the last week, you’ve seen headlines that SpaceX officially hit the public markets with the largest IPO in history, reaching a staggering $2.1 trillion valuation and crowning Elon Musk as the world’s first trillionaire.
The Hype vs Reality
SpaceX is undeniably an incredible company doing futuristic things, from reusable rockets to Starlink to orbital AI data centers, but here is the golden rule of investing: a great company doesn’t automatically make a great stock. Investing at peak hype usually means you're paying a massive premium for someone else's excitement.
Instead of strapping your portfolio to a volatile company with a highly questionable valuation, here are four things you can do with your money this week that provide a much safer launchpad for your financial independence.
4 Things to Do Instead of Chasing the IPO
Build an Emergency Fund. Having 3 to 6 months of living expenses liquid and safe isn't just a financial buffer; it's the foundation of career resiliency. A fully funded emergency fund gives you the ability to weather a sudden layoff without panic and the leverage to hold out for the right next role instead of taking the first one available.
Buy the “Boring” Index Fund Everyday retail investors often get burned on massive IPOs once the initial media frenzy cools off. Dropping that cash into a low-cost broad market index fund automates your wealth-building. It lets you focus your time and energy on your work and your life, rather than stressing out over daily stock drops.
Invest in Your Career SpaceX is promising massive returns by 2030, but what are you building right now? Use the cash you would have gambled on the IPO to fund your own income streams. Whether it’s taking a course to negotiate a raise or investing in your own side business, investing in your own cash flow generation yields the highest, most controllable ROI.
Erase High-Interest Debt If you have credit card debt sitting at 20% APY, paying it off is the mathematical equivalent of securing a guaranteed, risk-free 20% return on your money. Eliminating that monthly burden buys back your freedom, giving you the flexibility to move to take a new job or even accept a temporary salary drop for a massive long-term opportunity without being strapped for cash.
Will I Ever Buy SpaceX
Yes, I will buy it when it inevitably becomes part of the S&P 500. According to Polymarket’s latest view, it probably won’t be in 2026.
The point of buying the index is that you’re letting an emotionless, proven system do the heavy lifting for you. When a company proves its financial viability and meets the strict criteria for index inclusion, your portfolio automatically absorbs it.
Consider that the average lifespan of a company on the S&P 500 used to be 33 years. Today, it’s closer to 15 years, and researchers expect nearly half the index to be replaced over the next decade. Every great company eventually faces 'creative destruction' as they are displaced by newer, faster innovations.
By buying the index instead of an individual stock, you aren't betting on one company to survive forever; you’re betting on a self-cleansing system that automatically drops the losers and promotes the winners.
I know I'll eventually own a piece of SpaceX, but only once it has actually earned its place.
Disclaimer: I am a career researcher, not a financial advisor. This is for informational purposes only. If you’re looking for deeper, proven frameworks on personal finance, I highly recommend checking out the work of Ramit Sethi, Morgan Housel, and JL Collins.