Are you reaching for the antacid as the stock market takes you on another dip? You’re not alone. Before you do anything, sit down & breathe.
There are some simple things you can do to help you feel less anxious about the market & the economy. The most important way to lower your stress levels is by getting enough sleep–7-9 hours of actual sleep. Read in bed a half an hour before you expect to sleep if that helps. Reading on the computer is NOT the kind of reading for this. Second, get more exercise. Walking about 30 minutes a day is enough. Try to fit it into your lunch hour and/or break time.
Sit down with your significant other & discuss your investments. You’ll probably come up with more questions than answers, but that’s good. That’s when you start researching what to do or if not doing anything is the best plan at this point. Do you want to change the per centages of stocks or bonds? Do you want to hold more in cash? Do you want to change any funds in your 401K or IRA? Are you expecting inflation or deflation? Make a plan for each scenario & write it down.
How likely are you to lose your job? What is your plan if that happens? Make a Plan A, Plan B, & Plan C and revise those plans as needed. Write all this down and keep it where you can find it.
Don’t try to do this all on one night or even one weekend. You’ll need time to think over what you’ve come up with and make any changes that seem important. The important thing is to start talking about it and to start listing your concerns.
You might decide to bring in more money with a side business or various streams of income. Should you go back to school or retrain? Read all you can about these options and talk to others who have done them. In other words, do your homework.
Make a checklist of things to do & put them in order of importance. This will give you a feeling of control over a wobbly situation. As you cross off items on the list you’ll find you are feeling better and less stressed. AND you’ll be making progress to defend yourself and your family against many of the risks the current economy is tossing our way.
No one knows the future, but many are wary of what’s coming. Don’t just worry, strengthen your position to handle what comes as best as you can.
Click any of the labels below to link to more ideas about this. They might help you start your list of things to consider.
Maggie@SquarePennies says
KrantCents, good idea to review your allocations then. We have all our stocks & bonds in the 401K & are not making any changes now. We have one stock (a commodity linked stock) that’s not in a fund & are waiting for a rock bottom price to buy some more. That’s our hedge in case of inflation since we don’t like gold. Thanks for your comment and your vote to not make any rash changes.
krantcents says
So far, the gyrations of the market has not affected me much. I am staying the course and I will review my asset allocation this December. I do notice I look at the news shows and information about the market less often though. I am probably better off!
Maggie@SquarePennies says
Thanks, Barb. Excellent advice.
Barb Friedberg says
REalize that the market is cyclical. If you cannot handle it, keep less money in equities. Do not sell at the bottom!!! And, don’t keep any money you need within the next 5 years in stocks.