In the midst of a global pandemic, the future is unknown. Of course, we will get through it and no doubt in a few years it will become far from our minds. However, until then, the course may be a little bumpy and we still need to move forward and make decisions.
Fear-based financial decisions don’t lead to smart money moves and it’s not always easy to remain objective about money decisions when fear enters the room.
So, how should you resolve your own ‘flight’ instincts when it comes to your finances? Here are a few things that may help:
Work with a financial advisor
Having an objective professional who can be an experienced level headed sounding board can help you rationally work through your options to achieve your goals. They can help you address your fears reasonably, put your mind at ease, and continue to educate you through the process.
Give yourself a “cooling off” period
It is amazing what a good night’s sleep and a break can do to help you make clearer decisions. Set boundaries for yourself. That means, committing not to make any drastic money moves based on a whim or rush of emotions. Sleep on it. Wait a week. Let yourself get through your emotions before you take any action.
Learn what you don’t know
Education and knowledge about finances and markets can quell a lot of the fear that falls over you like a wave when you read an alarming headline, have an unforeseen event like losing your job, or see a drop in your portfolio value. As knowledge increases risk decreases, so focusing on education is worth the investment.
Let fear ignite a conversation or generate important questions you have about your financial preparedness, but don’t let fear make your financial decisions for you.