Our economy is in a downturn, investments are tanking, and every day the market reaches new lows. It can be hard to stay focused through it all and not panic. Unfortunately it seems like most investors in the market HAVE panicked already, and their fear is self-fulfilling. They’re afraid the market will tank, so when they all panic and sell, it DOES tank.
If you want to retain your sanity during these hard times, there are a few things that you shouldn’t do.
credit: dipfan
7 Things You Shouldn’t Do In An Economic Crisis
- You shouldn’t listen to the media: Remember the old saying, “If it bleeds, it leads”. The media will report the bad news first, and often gloss over the good or encouraging news. Try not to take the news reports too seriously as good reporting is becoming harder to come by.
- You shouldn’t forget to be positive: If you can’t stay positive, and look at the silver linings of a situation, your feelings of loss and panic will start to surface. Remember that money doesn’t bring happiness, and that the market will rebound. It may not happen as quickly as we’d like it to, but it will come around.
- You shouldn’t continuously check your 401k: If you’re like me, you can’t resist the urge to be constantly checking your 401k every day. The DOW dropped 400 points? Oh my gosh, I wonder how much money I lost today! Resist the urge to keep checking your balance. Make sure you have good diversification and good allocations, and then set it and forget it.
- You shouldn’t count on the government to help you: Don’t waste your time waiting around for the government to turn things around, bring you a bailout plan, and turn things around. Things will only get better for you if you make things better yourself. Create your own bailout plan, make some extra income and make a plan to succeed!
- You shouldn’t stop investing for retirement: The old investing adage says, “Buy low, sell high”. The markets are tanking right now, so you’ll probably be able to find some investments in good strong companies at a fraction of their normal price. Buy it while it’s low!
- You shouldn’t try and time the market: It’s a fools game to try and time the market. It’s impossible to know when the market is at it’s lowest, and when it’s at the highest. I thought it was at the low point the other day, and its dropped over a 1000 points since then. Don’t try to beat the market. Invest for the long term. Put together a nicely diversified portfolio, and then let it ride.
- You shouldn’t forget that it’s only money: No matter how bad things get, remember that the sun will rise tomorrow. Even if you lose it all, your heavenly father will still take care of you. “Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own. Matthew 6:34”
Remember, this country has gone through hard times before, and we have always come out of it sooner or later. I have no doubt that this time will be the same.
So what are some things that you are going to try not to do during this economic crisis?
Great post! I especially like #5. Now is not the time to forget that, over time, the stock market gains. Keep investing, and your retirement fund will eventually grow. Just make sure you’re invested in companies with solid fundamentals.
Mirandas last blog post..Ask the Piggy Bank: Should I Put Off Retirement?
I think number 1 and 3 are the best points. 1 causes mass hysteria and panic, and the other causes depression. Combined one would need bi polar medicine to make it through. Unfortunately everyone is doing a combination of your list and emotions will eventually knock many people out of the market.
twenties moneys last blog post..What Is A Twenty Something To Do With This Financial Mess
Great article. I am trying to do all of those. In fact, I didn’t know exactly how much the market had dropped last week until our pastor was doing a sermon on not worrying about the market since that is not where our treasure should be. I have not looked at my or my husband’s 401(k) balance once since this all happened. I’ve got 30 years before it matters to me what the balance is. All I can do is continue to save.
Corrie @ “Cents”able Mommas last blog post..Rite Aid Trip – Lots of Freebies
Great advice! Just because the outlook of the market right now is sub-par, doesn’t mean people should stop investing in retirement. Also, news reports can be a bit scary, but it’s important to remain positive, and keep working hard! Thanks for posting!
Hey. I noticed the debate you had on Reddit. Good points you made, and good job keeping your head cool. And I do agree that the Bible has a lot to say about money!
Mirandas last blog post..Barack Obama and John McCain Share Economic Proposals
Nice list you put together. I am very guilty about #3, as I think most are. I think #2 sums it all up the best. I keep telling my family not to panic and let’s make the best out of this situation.
passivefamilyincomes last blog post..Free Grocery Coupons
Pete,
great article! I love #7, if there has been anything I have learned about what the BIble says about money, it is that “it is only money!”
We shouldn’t put our faith in it, or hang onto it too tightly!” It really isn’t ours anyway!
ChristianPFs last blog post..Ideas for giving
Exactly – it is all God’s to begin with, so why worry. Makes giving easier too, hey it’s not my money anyway, i might as well give it away!
Would just like to add if you already panicked and sold then you can look at this down turn as a great opportunity to invest in companies that will not be struck as hard by an economic downturn
Wallmart got cash and everyone needs to buy food clothes ect…
Microsoft plenty of money saved for any problems it may face and computers will still sell and they make plenty of profit on there product
Coca Cola its not going no where so the low price that the stock has hit or will hit will be just that a low price it will shoot back up
The larger drug companies oil companies Intel ect.. that have low or no debt and money saved and products that people will need and buy even in a bad economy
Great article. I can agree with all of them especially with #7.
Pinyos last blog post..Frugalist Expense Reduction Guide
Except we are more than likely in the last days, sure we don’t put our trust in the mark (money) but having said that, I predicted this months back and still am of the opinion we’ve seen nothing yet.
However having said that I revised my severe recession to a mild one.
Depends on what the one world government, sorry, world governments do of course.
Either way, if you were in debt to the banks you are now in debt to the government who is in debt to the global elite who many call the one world government and new world order and so on, top rich banking guys, who behind the scenes it seems have some leverage on the politcians.
Only gotta look at the backstabbing going on with the George Orbourne affair.
At the end of the day, is it God you can 100% trust or money and many, which you certainly can’t trust.
My new motto of late is fast becoming:
‘The only thing certain, is that nothing is certain.’