What You Need to Know to Get Through This Volatile Financial Time

What You Need to Know to Get Through This Volatile Financial Time

February 8, 2022 (Last Modified: February 14, 2022) / Brittney Castro

As we’ve entered 2022 and the pandemic is still upon us, a lot of Minters are asking, “What do I need to know about what’s happening in the economy and stock market, and how does it all affect my finances?”

When investing, whether it is in real estate, the stock market, or crypto market, it is always important to remember your long-term game plan and investment philosophy. There are a lot of new investors on the scene and many have not yet experienced bear markets or extreme market volatility and don’t understand the principles of not reacting emotionally when they see their accounts down. If you are investing for the future, then focus on having the right allocation mix, understanding market volatility and risk, and don’t react emotionally when you see your accounts down. Remember, short-term fluctuation is not a long-term loss and you only lose money if you sell at a loss.

Spend time to learn, or remind yourself of, smart investing principles and never panic, sell, or get lost in your emotions when it comes to making financial decisions. The news will always (and I mean always) be a chicken little crying, “the sky is falling, the sky is falling,” but any successful investor will tell you to keep your investment philosophy front and center, and not react to market swings unless something major changes in your financial life and, therefore, changes your goals.

To help you review your finances and get an updated plan for 2022, here are 10 important things you can do right now with your money:

1. Don’t panic

Easier said than done, but during volatile times, it is important to remain calm and centered and not react from a place of fear. It is wise to express any emotions you may have about what is going on with a trusted family member, friend, or licensed therapist and use your network of professionals to help guide you during this time. Take advantage of this time to start meditating or doing other activities to keep you centered and calm.

2. Have a plan

You always need a solid budget and financial plan, and in times like these, you can then be more present and clear with what is happening. Most people who have a solid budget and financial plan that they’ve set up in Mint or have been working with a financial planner, will find that they don’t need to react much to the unforeseen circumstances and hopefully have been getting prepared for a market downturn.

3. Review your plan with your financial planner

You should review your plan often, but especially during times like this, you can review again to ensure you are doing everything properly with your money. If you don’t have a financial planner, now is the time to get one. Check out www.cfpboard.net for a planner who fits your needs.

4. Review your budget and cut out any unnecessary expenses

To continue reading, please go to the original article here:

https://mint.intuit.com/blog/coronavirus-covid-19/coronavirus-what-you-need-to-know-to-get-through-this-volatile-financial-time/