There is so much doom and gloom in the news at the moment.
All the news can be narrowed down into the three topics below:
Inflation high
Asset prices way down
Recession looming
When bombarded with a barrage of negative information it’s easy to succumb to the blows and feel deflated and knocked down. Especially since the above is outside of our control right? There isn’t much we can do about it? But it doesn’t have to be that way.
Instead of accepting your fate, it’s always better to look for solutions. Even if they are alternative solutions.
financial progress can still be made during bad times
There’s a wide range of things someone could be doing to better their situation, despite all the negativity.
Some people are doing very well either going for new jobs or negotiating better conditions at their current job.
Others are starting their own businesses.
You could be tracking your expenses and finding ways to cut down.
You could be making sure your investments are invested in a way that shelters you from short term market and economic volatility.
You could have an adequate emergency fund.
Now is a good time to making sure your house, income and life are adequately insured.
Maybe there are better opportunities for you overseas.
The point is, there are many things that could be done to better your situation. Some are easy and some are difficult. As they say, fortune favours the bold.
Maybe ten years or so ago a recession would worry me. Back when I had a large mortgage, no emergency fund, inadequate insurance cover and no investment strategy.
But since then I have become much better with money and have made a lot of changes that help me during periods of high inflation, low asset prices and a potential recession.
To combat inflation I have reduced expenses as much as I can without impacting on my enjoyment of life. I have also started a business that brings in secondary income.
To combat falling stock, bond and asset prices, we are in a comfortable position as we didn’t over leverage. We are not worried about having to sell anything as all our short term needs are covered by short term assets. All volatile longer term assets such as stocks are not needed for a long, long time. We have a good investment plan that works in these times.
To combat a potential recession, keeping control of our costs have really helped. As does our significant emergency fund, my second job, and adequate insurance. It’s amazing how much more comfortable you will feel if the loss of a job doesn’t send a panic through your system. An emergency fund and adequate insurance can help out big time with those feelings.
The message today is to not throw your hands in the air and give up. Keep an eye out for solutions, even if they are left field. Don’t accept your fate.
Beyond all else, maybe it’s time to switch off your news feeds. There is so much negativity out there. Life is to be enjoyed.
Times are tough, but they can be better with some careful planning and some bold decisions.
If you do need help with your financial planning then do get in touch. We would love to hear from you.
The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here