Times of Economic/Personal Uncertainty
I'm SCARED TOO
This post is 847 words, a 4-minute read. Enjoy!
With Trump instituting his tariffs and plunging the economic world into chaos, I know we all might be wondering, "What should I be doing to protect myself and my family?"
Here are a few quick thoughts on what I do during times of uncertainty, not just economically but in life:
Hug your loved ones and accept that these are scary times.
Fun Fact: I AM SCARED!! I am worried about all the affect shocks of what Trump is doing not just the tariffs but every single policy he has enacted since taking office
You aren't weird for feeling uncomfortable or scared. You should be feeling that way because things are that scary.
Get a hug from your wife, your kids, or your friends. Trust me, it helps.
Then talk with those loved ones about the reality of the times. Talk about what it is that scares you and why you are afraid. Voice your fears and concerns, and listen to the comforting words.
This does not mean we just take in toxic positivity. NO, it means we accept the hope that we may not be able to see for ourselves.
Touch Grass - Bring yourself back to the reality of where you are today
Know Your Numbers
We must have a solid handle on our finances during these times.
If you do not already have a financial plan, it is a perfect time to create one. You can refer to Part 1 of my Everything You Need to Know About Money series to create your financial plan.
TL;DR: Track expenses and create a spending plan using 50-25-25 rule
50% to needs
25% to wants
25% to savings, investing, and debt
Depending on your personal situation
You might make your wants smaller to make room for savings, investing, or paying off debt.
Knowing your numbers and having a plan will provide a pathway to walk down and make decisions.
Simplify.
Ignore the TV commentary and the TikTok “finfluencers”. This is not the time for complicated money strategies that fail 99.9% of the time.
It is the time to keep things as simple and direct as possible. You want the ability to go from thought to execution as quickly as possible.
Find ways to simplify your finances to the core things. Figure out what works for you and stick to the simple things.
Replace Nos with a Bigger Yes
Look for things that are not adding value to your life and get rid of them.
It can be selling those shoes you bought but never wore. Or that dress you keep saying you'll fit into one day. Or that console you have not played in over 3 years.
It can be looking over your expenses and getting rid of subscription services you forgot existed.
Or reducing the number of times you eat out.
However, you have to use those savings for something else. What are the things you value having in your day-to-day life? The things that bring you joy
You will be surprised at the ways you can do those things, but in different ways
Why do you eat out? To spend time with friends, why not host a potluck or game night with board games that have been collecting dust?
The key here is not depravity but rather intentionality
Delay Large Expenses, if possible. Increase Emergency Fund
Are there things that you could maybe go longer without doing?
Like a massive vacation or a new car.
Can you do without a new laptop or phone for a bit longer?
Can you reduce a few things you've been doing, like going out less?
Then take those savings and increase your emergency fund account to a position that will make you feel more comfortable
The key is to say to yourself, "We are choosing to do things differently," not a Woe-is-Me mentality.
Keep Investing.
This is very important for those of us who are far away from retirement
If you are in your 20s, 30s, 40s, or early 50s, we must not panic and bail out of the market.
Yes, it is scary to see your money continually go the way of gravity and crater into the earth. And, naturally, our instinct is to stop the pain as quickly as possible.
However, that could be the worst decision you could make..
The best thing to do is to stay the course, for those who already had an investing plan, STAY ON PLAN.
For those who are just getting started, this is a great time to be in the markets. You cannot learn the lessons of bad markets anywhere else but in bad markets. It is also providing a great entry point to start investing. Even though it may not feel that way.
Just ask anyone who started investing in 2020 how much they're money has grown since then. Or those who went through the 2000 & 2008 bear markets.
This is what I tell myself whenever times of uncertainty rear their head. I confide in friends (still learning this one), I face the problem, and I ensure my emergency fund is ready. And I double down on my investments.
Generosty>greed
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Recommendation Section
Kyla Scanlon in "Tariff Q&A", answers all the questions we have about the Trump tariffs. She provides in depth breakdown of all the various effects of the tariffs. If you have been spinning over the last few days trying to understand what is happening. Go read her newsletter.
Scott Galloway in "Earners vs Owners", perfectly explains how I think about taxes. It's not about Rich vs Poor but rather those who own things and those who don't.
Josh Brown in "Give it a minute", discusses the best way to approach most situations that seemingly make no sense.