By Joe Arnold, AIF®
Even after a few months of life following the introduction of a global pandemic, there’s still a lot of uncertainty, worry, and fear. With the stock market tanking and unemployment skyrocketing, it’s normal to worry about your finances.
Much of what’s happening in the world right now is outside our control. Worrying about things outside our control does us no good. Instead, let’s focus on what we can control—like our actions (and reactions).
Here are four actions within your control that will help you manage your finances in a crisis.
Don’t Panic
The first (and arguably most important) step is to stay calm. With all the scary emotions stirring, it’s easy to make rash decisions. But rash financial decisions almost always end in regret. Before making any big decisions, try to look at them objectively and weigh all the pros and cons—for both the short term and the long term. Better yet, speak with a financial advisor who can help you expand your view, see the big picture, and act appropriately.
Create A Crisis Budget
Desperate times call for desperate measures. Most of us are feeling some degree of financial pressure right now. It’s never a bad idea to revisit your budget and look for ways to cut back until hard times pass.
The idea of downsizing and living a more frugal lifestyle doesn’t sound fun, but you’d be amazed at how fast humans adjust to new circumstances. Give it a week or two, and your adjusted living conditions will start feeling like the new “normal.”
Stay Diversified
When it comes to investing, we all know not to put all our eggs in one basket. But this applies to income streams as well.
Relying on one source of income to stay afloat is risky business. To minimize this risk, look for side hustles you can do to bring in some extra money (bonus points if your idea is recession-proof and can be done from the safety of home).
Follow The Plan
By now we all know that it’s ideal to have a “crisis plan” established before calamity strikes. Having a plan already in place (and understanding the logic behind it) means you’ll be less likely to panic and make any costly financial mistakes.
The financial choices you make during a crisis can make or break your future wealth and security. But if you don’t already have a plan, it’s not too late to make one. I would love to show you the best way to weather any economic storm and how to protect yourself during any crisis. If you’re interested in setting up your own smart financial plan, schedule a complimentary appointment by calling (440) 899-7535 or emailing me at jarnold@foundationwa.com.
About Joe
Joe Arnold is an independent financial advisor and the founder and president of Foundation Wealth Advisors, LLC, an independent firm providing private investment management for individuals and families, as well as retirement plan consulting for small and mid-sized businesses. With almost 20 years of experience in the financial industry, Joe specializes in providing objective advice to individuals, as well as transparency in building and managing company 401(k) retirement plans. He is committed to putting his clients’ best interests first in all decision-making and recommendations. Based in Westlake, Ohio, he serves clients in the Cleveland, Akron, and surrounding areas, as well as throughout the country. Joe received a bachelor’s degree in business administration from Cleveland State University and is an Accredited Investment Fiduciary® (AIF). He has been featured on national television, including CNBC and FOX Business, and quoted in various publications, including The Wall Street Journal, CNN Money, Forbes, and others. Joe lives in Rocky River, Ohio, with his wife, Allison, and their two grown children, Kevin and Keira. An avid golfer, he is a former Class A PGA of America teaching professional and NCAA Division 1 athlete. When he’s not working, he enjoys playing golf, working out, and honing his culinary skills. To learn more about Joe, connect with him on LinkedIn.