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How to Reduce Extreme Financial Stress:
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Being worried is understandable.
This is a very troubling time...
Financial Stress Survival Tips
By Eudora
Adolph
Financial Growth Engineer
Step 1. Avoid Irrational Panic
Remember the days of the 1990’s, Irrational Exuberance, it was fondly termed. Every venture was expected to be wildly successful, no matter how crazy. It was the age of the “New Economy”. Then we found out the economy never really changed, and it corrected — and rather painfully for some.
Now, if we listen to the media, the politicians, and perhaps our neighbors, nothing will ever succeed again, and all our money might be better kept in our mattress or the back yard. This is what I am now calling the age of Irrational Panic.
We knew in the 1990’s — in our gut — that we were being deceived by ourselves and others. It felt great, and we wanted to believe the euphoria was real. Right now, we all feel so incredibly and understandably stressed that we are terrified that this time will never end and the worst will happen.
Yes, markets have fallen to multi-year lows, home values have fallen, retirements are at risk, and job
security is questionable. However, as the saying goes, this too shall pass. All good times do end, and all bad times do pass as well (although the bad times do seem to linger longer).
Markets have been here before, and they have ALWAYS rebounded as these charts
show. Ironically, financial change is an economic constant.
How should we weather this financial storm to preserve our sanity, our portfolios and our blood pressure?
Here are a few thoughts:
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Don’t succumb to irrational panic. Stay focused on what you can
control. Take a deep breath and calm your thoughts.
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Most of what we worry about never happens. Know your
financial needs and have a plan of attack for today and long-term.
Readjust it for a worst case and best case outcome. When you face the monster in the closet, fear and uncertainty of the painful unknown can’t hurt you, and you can then develop a real plan of attack to prevent the absolute worst.
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Be prepared to actively prevent the worst outcome.
Diversify your bank account if there are rumors about your bank’s stability. There are insured bank programs over $100,000 up to $1.5 million. Know your
financial needs now, in five years, and longer term. Learn about new mortgage relief options. Live below your means to save wherever
possible. Take appropriate steps today including seeking counsel from qualified financial, legal and tax professionals. Taking active steps will make you feel more empowered and less at risk.
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Focus on your inner well-being. Active exercise, eating right and spending quality time with loved ones will help improve your point of view. Stress can lead to poor personal habits which worsen a depressed outlook. Likewise positive habits can keep your viewpoint more
optimistic.
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Maintain a healthy focus on the future. There are stable investments today that are sound and pay returns that beat inflation. Keep your
career qualifications up to date. Make sure your overall financial house is in order as best you can, so you will sleep better at night. Every change brings opportunities, and we can help you identify those that exist even today.
I am here to help my clients weather this storm — together. This
difficult time shall pass too and with our long-term compass directing our efforts daily, we can still end up on the right path towards our long-term goals. The storm will be fierce and we may even get
motion sickness along the way. But by staying true to our course, working hard together, and being always prepared for unexpected wind changes, our ship will keep sailing towards calmer seas and bright sunshine.
Feel free to call anytime with any financial question or to
schedule a complimentary, initial financial appointment. We
can help you take advantage of today’s opportunities, review
your current financial plan, or simply weather these stressful times.
Contact us today...we are here for you.»
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