Change is Inevitable – How to Stay Financially Grounded
Things are changing fast! How can you keep up? The truth is, you probably can’t. That’s why we strongly recommend establishing a solid financial strategy and sticking to it—no matter what’s happening in the world around you.
Consider the current whirlwind of events as of mid-March: tariffs are being implemented, revoked, and reintroduced, targeting specific countries while exempting certain industries. Social Security and tax rates are potentially changing. People are scrambling to make sense of it all. The reality? It’s chaotic. And for most of us, it’s best to maintain a general awareness of what’s happening without diving too deep into the complexities.
Focus on What You Can Control
Because the landscape can shift just as we start to understand it, sticking to a well-thought-out financial strategy is key. We may not have control over major policy changes—such as tariffs that could lead to workforce downsizing and job losses—but we can control our budgets, spending habits, and investment strategies.
This is why it’s important not to get caught up in every single news headline. In the past few years alone, we’ve lived through a global pandemic, historic supply chain disruptions, and political upheaval. Yet, despite all the turbulence, the stock market has continued to trend upward over time.
Market Trends: A Lesson in Long-Term Thinking
While markets may experience downturns, history shows that long-term investors are often rewarded. Just last year—when many were worried about a looming recession—the S&P 500 surged by approximately 26%. If you let fear dictate your financial decisions and attempted to time the market, you may have missed out on those gains. But if you simply held onto index funds, your portfolio would likely be in good shape today.
This highlights a crucial investing principle: sometimes, the best thing to do is nothing at all.
Stay Informed, But Don’t Panic
Keep an eye on global events, but don’t obsess over them. The world has seen plenty of turbulent times, yet history has proven that economies and markets recover. In reality, we may have lived through one of the calmer periods in human history, and stability will return—it always does.
When it comes to your financial future, adopting a steady, disciplined, and cautious approach is the best route.
Plan for chaos, stay informed, but most importantly, stay the course.
