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Five Tough Time Financial Fixes

Todays Date: October 22, 2018

When the markets are in a tailspin and running unpredictably it’s really hard to keep your financial house on course. The following are five things that you can do in order to ride out any storm and keep yourself on track.

When The Surf Is Up, You Should Ride the Waves

When there are dramatic turns in the market place, one is able to take advantage of these ‘dips’ and buy. Doing so allows one to acquire more stock with less money. So make a move into the markets for stocks which you’ve assessed as from solid companies but trading low due to overall market conditions.

For example if you say put $500 into a stock fund for your 401(k) every month and the market is down on your payday then you’ll be so happy as you’re going to get more shares for your money than if the market were say up in the clouds. It’s pretty much like you go shopping and find out that everything that you want is on sale. This is a long term investment so don’t worry about when the market is low and you’re investing, ride the waves.

Buy Low, Sell High

Most of us inherently want to invest in winners. Nobody wants to be part of loosing company. However, the reality of investing is that one has to look at over all trends. For example if real estate and bonds have been going up and up one might have to decide to get off of this track and back into some other stocks which have potential for growth.

Arguably, the real estate market is not going to see the big stretches of growth that it has in the past. Ultimately, real estate is going to level off. Stocks will therefore become the vehicle for the long term investor.

Don’t Run For Cover

When faced with market volatility it is really a time to bunker down and hold on to your positions. As a long term investor one has to appreciate that when markets do turn back up, stocks often make a sharp up turn and a full recovery. Therefore, selling during a rough time is not the plan. One has to hold their position and understand that they are playing out a long term plan.

Generally it’s going to be much more important to be in the bull market from the very beginning than it would be to avoid the bear markets. Back in the 92-01 the S&P 500 had a 175% return. If you were someone that was on the sidelines during this time then you missed out so much and lost so much “free” money. Don’t ever duck and run for cover, this isn’t for investments.

Stash Your Cash

You don’t want to be cash poor and having to sell off your assets to fund your basic needs. Bear markets generally are good for 3 years so you will have to have some liquidity available through CDs so that you can take on renovating your house, traveling or educating your children.

Stop, Look, Listen

Ultimately, you need to stop worrying. You need to assess your position and then listen to the advice of a trusted financial adviser who will help you create a strong financial plan. Following this plan will get you back on track and moving towards the future you are envisioning.

Want to find out more about a printable budget planner, then visit Tiffany Roberts’s site on financial Advice.

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