Throughout the world, many individuals felt gut-wrenching sickness as they watched the United States’ dramatic presidential election take a shocking turn on Wednesday morning.
The Media jumped in spreading news like wild fire.
Stories of the stock market crashing. Maybe you saw something like this;
Dow Jones futures market “plunged” more than 790 points in after hours trading on Tuesday as the reality of an underdog candidate claiming the U.S. presidency took hold — mirroring a similar situation back in June in the United Kingdom when Brexit unexpectedly won the referendum.
It’s uncertain times like these that individuals may be tempted to pull money out of their Freedom Generator, cash out their investments, and bunker down for a topsy-turvy future.
Yet this is the wrong approach to take.
Like money stress, financial fear is bullshit — and it’s unproductive.
A better way to react to a seemingly scary situation, whether a natural disaster or political election that threatens the world economy, is to find a way to create more security.
So then the question become, how does one go about building security?
Consider the following steps:
- Come together as a community. Never has it been more important to unite as a community with others, in lieu of waiting to see what policies the powers that be will propose, before making financial decisions. This doesn’t mean you should ignore the news.However, in uncertain times, seeking guidance and expertise from others in your community who have the knowledge and tools to help you navigate a clear financial path, is the best way to ensure you’ll stay financially secure.
- Focus on the long term. In order to truly build security, take your focus off short-term trends and refocus it on the long-term strategy of building wealth, and building freedom.Fear might cause a few ripples — but staying the course with your financial plan and investments through market downturns is the best way to grow your money, and build your freedom.
- Consider historical trends. Market volatility comes and goes, and can do a number on investments. However, this isn’t the first, or even second, time the market has trembled amid an unanticipated political event or trend.Consider that since 2000, the world market has experienced a couple of major downturns — but bounced back even higher, later on. That should put things into perspective and eliminate some of your negative thinking.And, if you invest for cash flow (as we teach to do with your Freedom Generator) and invest following our Yin and Yang Principles then these market “plunges” and “crashes” will not affect your Financial Freedom. Learn more inside our Financially Fit Bootcamp here.
- Don’t stray from building your Emergency Buffer. The desire to horde your cash is natural, but acting upon it isn’t the right thing to do. Continuing to grow your Emergency Buffer through regular contributions will help you feel more secure, not less, in the future.
- Talk to your Financial Advisor. In addition to seeking guidance from your community, it’s important to talk to your financial advisor about your fears, as well as your financial goals.Are your investments diversified enough? Do you need to adjust your risk tolerance?Should you build up a bigger Emergency Buffer, or hold off on a major purchase? He or she can answer these questions, and help guide you during the best — and worst — of times.Check out our Panel of Specialists here for more specialized advice based on the recent economic turns.
The views and opinions expressed are those of the guest author and do not necessarily reflect the views and opinions of MindShift.money.
Marisa Torrieri is an award-winning journalist and freelance writer specializing in personal finance, business, healthcare and technology. She has a master’s degree in journalism from Northwestern University and resides in Fairfield, CT. Her work has appeared in dozens of media outlets, including LearnVest, Forbes, The Washington Post, Business Insider, TIME and Health.com.