When it comes to turbulent economies, few can compare to what we’ve been experiencing in the past few months. When the economy is uncertain and the markets are all over the place, it can be very easy for investors to get stressed and make decisions that aren’t right for their futures. Staying calm is not only vital to your financial stability, but it’s also crucial for your emotional well-being. Here are some helpful tips on how investors can stay calm in times like these.
Look at the Big Picture
While the pandemic is dominating nearly every part of our lives right now, it won’t always be that way. Everything in the economy is temporary. If you have enough time before retirement, it’s extremely likely that the market will bounce back and that your money will be safe. It’s easy to develop tunnel vision when crises occur, but staying emotional agile means you can respond to change and pivot to remain productive and calm.
Limit (or Eliminate) the News
If you read or watch the news every day, you probably think the world is coming to an end. One of the best things I ever did for my mental health was limit the amount of news I consume. Yes, I still stay up on the information I need to be good at what I do. But watching or reading alarmist stories every day does one thing and one thing only: freak you out. Instead of consuming news, take a walk in nature, play a game with your family, or read a good book. You won’t miss out on any information you need and your mental health will benefit.
Stop Checking Your Stocks Every Day
Just like watching the news every day, checking your stocks every day will do nothing but cause you stress. Stocks fluctuate. Sometimes they fluctuate a lot. But they will normalize at some point and all those numbers in between won’t mean anything. If you have the right strategy in place, you don’t have to worry about what stocks do on a temporary basis. You can rely on your long-term plan and understand that everything will work out in the end and you will still be able to leave the legacy you’ve been working toward.
Practice Stress Management Techniques
No matter how much you avoid the news or checking stock prices, you can’t block out everything. We’re all experiencing record-high stress levels right now and it’s very important that you find effective ways of managing it. No two people are alike, so you have to find a method that works for you. Meditate, read novels, practice yoga, develop a calming nightly ritual. Whatever allows you to sleep well and breathe easier, incorporate it into your daily routine and get in the habit of self-care.
Working with an independent financial advisor who has your best interests at heart is one of the best ways to put fears about your financial future to rest. A fiduciary is obligated to do what’s right for you and take worry off your shoulders so you can live your life. Have questions about what a fiduciary can do for you? Please reach out so we can talk more.