Money Musings 💭 a financial art 🎨 project
Over the last couple of months, investors have been on a rollercoaster ride. 🎢The market was at all time highs as we kicked off the year, dropped over 30% in a month and has since rebounded almost 28%.
Side note: If you have a retirement account, you’re an investor. If you own a share of a fund, stock or a bond, you are an investor. By investor, I’m talkin’ to you (said in a New York accent)! 🗽
It’s completely normal to feel unsettled (or completely terrified 😳) when you see your hard-earned money jumping all around. I can’t tell you how many messages I’ve gotten asking if it’s smart to liquidate 401(k)s right now. It’s not. If at all possible (cash wise), PLEASE leave it be.
Better yet, don’t look at your investment accounts until things get better. I mostly looked the other way over the last couple of months, but I do update our net worth tracker every quarter. I did this on March 31st and I can’t lie - it HURT. 🤪
But this is why we invest for the long-term. The only prices that really matter are the price we purchased the investment for and the price we sell it for. If we don’t need the money now, we can wait out this likely recession.
For those who regularly invest or have some cash on the side, the next question is, when should I buy? Will the market go down or up?
The truth is - no one knows. Investment firms who have teams and teams of people dedicated to knowing as much as they can about the market don’t even know. And they often make the wrong decision.
It’s really almost impossible to time the market. But that doesn’t stop me from wondering or even trying to figure it out. It must be human nature. 🤷♀️
The smartest thing we can do (as long as we have our rainy day funds and short-term needs met) is to consistently invest over time. This works best if our investments are set up automatically. For example, invest in your 401(k) or brokerage account each paycheck.
If you are feeling lucky and want to take a speculative bet, you can satisfy the urge with a small amount of money on the side, rather than your entire portfolio.
We got this 💪 and if you need some more support, join the Fiscal Femme Slack Community. We’re here to talk you off the ledge.
MONEY MOVE OF THE WEEK
Turn your goals into art. Motivation is key when it comes to sticking with habits that move you toward your goals. Two things that make a huge difference:
Frequent reminders of your goals (and how achieving them will make you feel)
Getting to “win” or make progress on those goals (i.e. like the satisfaction of checking off something on your to-do list, ✅ but better)
You can do both of those things by turning your goals into “art.” I use the word art 🎨 loosely - I’m by no means an artist but you’ll want to create some kind of physical representation of your goal(s). Have fun with it.
That might look like a bar chart you color in as you hit different milestones or post-it notes you rip off (and rip up) as you tackle another $500 of debt. The important part is that you get to see and celebrate your progress along the way. I’d love to see what you create to track your goals! Please send me photos. 🤗
YOU GOTTA SEE THIS
Your top WFH strategies. I asked you for your #1 tip or strategy to successfully work from home and you delivered. With most of us now working from home, it’s a whole new ball game. We might be working and sleeping in the same room, juggling childcare with work or just trying to get used to all the noise. Here are your brilliant tips and ideas.