Lately, the stock market has felt like a wild ride. One day it’s climbing with vigor, and the next, it’s plummeting unexpectedly. With economic uncertainty, inflation worries, and geopolitical issues (not least because of Donald Trump), it might feel like you’re trying to navigate a storm without a compass. So, how do I handle times like these? Let me share my approach:
Strengthening My Financial Safety Net
When uncertainty is looming, having a robust financial safety net becomes more important than ever. Market ups and downs are to be expected, and reacting impulsively by selling every time the market dips could jeopardize the long-term gains I’ve worked so hard to achieve. Instead, I constantly remind myself that my investment journey is a marathon, not a sprint—it’s about years, not just a few fleeting months. It often turns out that staying invested through thick and thin is much more beneficial than trying to predict and outsmart the market’s next move.
Of course, this long-term commitment to investing can only hold if I’ve established a firm financial buffer to absorb any shocks from market downturns. Here’s what that looks like for me:
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