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What you need to know to get through this volatile financial time

As we enter 2022 and the pandemic is still upon us, a lot of Minters are asking, “What do I need to know about what’s happening in the economy and the stock market, and how does it all affect my finances?”

When investing, whether it is in the real estate, stock market or crypto market, it is always important to remember your long-term game plan and investment philosophy. There are a lot of new investors on the spot and many have not yet experienced bear markets or extreme market volatility and do not understand the principles of not reacting emotionally when they see their accounts go down. If you’re investing for the future, focus on the right allocation mix, understand market volatility and risk, and don’t react emotionally when you look down on your accounts. Remember, short-term volatility is not a long-term loss and you only lose money if you sell at a loss.

Spend time learning smart investing principles, or reminding yourself to never panic, sell, or get lost in your emotions when it comes to making financial decisions. The news is always (and I mean always) a rooster’s little cry, “The skies are falling, the skies are falling,” but any successful investor will tell you to keep your investment philosophy front and center, and the ups and downs of the market. – Will not react to descents. Unless there is some major change in your financial life and hence, your goals do not change.

To help you review your finances and get an updated plan for 2022, here are 10 important things you can do with your money right now:

1. Don’t panic

It’s easier said than done, but during volatile times, it’s important to stay calm and focused and not react from a place of fear. It is wise to express your feelings about what is going on with a trusted family member, friend, or licensed therapist, and use your network of professionals to help guide you in the meantime. Use this time to start meditating or doing other activities to keep yourself focused and calm.

2. Make a Plan

You always need to have a solid budget and financial plan, and in times like these, you can be more present and clear with what is happening. Most people who have a solid budget and financial plan set up Mint Or working with a financial planner, they may find that they do not need to react as much to unforeseen situations and hopefully prepare for a market downturn.

3. Review Your Plan With Your Financial Planner

You should review your plan often, but especially during times like these, you may want to review it again to make sure you’re doing everything right with your money. If you don’t have a financial planner, now is the time to get one. check out www.cfpboard.net For a planner that fits your needs.

4. Review your budget and cut unnecessary expenses

You can log into your Mint app and take a deep dive into all of your monthly expenses to see if there’s anything you can cut, like subscriptions or subscriptions you no longer use. With the free-up cash you create by eliminating or reducing expenses, you can decide what financial goals you want to save it for. Mint has a great feature to help you create financial goals and set up automatic savings for them so you can see the progress you’re looking for in reaching those financial goals.

5. Consider Refinancing the Loan at Lower Interest Rates

Federal interest rates are rising and that means now is a good time to lock in before lower rates continue to rise. Review interest rates on credit cards, mortgages and other personal loans, but be sure to talk to a professional because it doesn’t always make sense to refinance the loan. Do your research and make sure you consider your options carefully.

6. Do not invest short term money in long term investments

It is given during this time but is even more important. You should always keep your short term goals like cash cushion, home down payment and travel in high yield savings accounts and not invest in stock market. This is because you never want to take money out of your investment accounts when they may be down (for example, the current scenario) to meet your short-term funding needs.

7. Keep the Long Term in Mind with Long Term Investments

This is also a given but keep in mind that you should invest your money in stock market only for long term as you have time to recover from it and whatever comes in future.

8. Invest Extra Cash

It is important to have an adequate cash cushion throughout your lifetime as it allows for a cushion during emergencies, times of low income or large unforeseen expenses. That said, having a lot of cash is not a good thing, especially with inflation which is around 6.8% right now. Review how much you need as a cash cushion and then make the right investments in assets like real estate, stock market etc. Which can help your wealth grow faster than inflation over time.

9. Look for Opportunities

Are there ways you can make more money right now? Use this time to harness your unique skill set and create an online course or create and sell other products or services that provide value to others. Because most people have more time left on their hands, choose to use it wisely.

10. Educate Yourself on Wealth Management and Investing Principles

Keep reading blogs like this to educate yourself on smart money management strategies and investing principles. Mint contains a lot of valuable money stuff which can help you at any stage of life. Now might be the perfect time to kick your financial literacy into high gear.

Hope this blog has provided you with some useful insights to help you make the most of 2022!

Brittany Castro
Brittany Castro

Brittany Castro, CFP®, CRPC®, AAMS® is the Founder and CEO of Financially Wise, Inc., Entrepreneur and President. Connect with him on Instagram or LinkedIn. Other Brittany Castro Movies & TV Shows

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