We are in a period of tremendous global financial uncertainty; the invasion of Ukraine, Central banks have yet to tame Inflation, and the S&P 500 (the stock market index of the largest 500 companies in the US) has been in bear territory for months!
Because Russia has cut oil supplies, there is insufficient fuel to heat Europe this winter. And cryptocurrency is not coming to save us.
Your investments must have tanked this year, many people are struggling to put food on the table, and Covid 19 is not entirely over. So, what can you do to navigate through financial uncertainty?
Plan for the Unexpected
Life is made up of uncertainties. By making it a habit to save a portion of your income, you can build a rainy day fund to tide you over during periods of uncertainty.
Purchase sufficient insurance to protect your family should your ability to earn an income is compromised. Life and disability insurance can do that.
Are you earning other sources of income besides what you receive from traditional employment? In other words, do you have a side hustle? If not, then it’s time to get one.
Roll With the Punches
Uncertainty is the only sure thing. Take control of your financial future. Grow your knowledge in areas you are skilled at that you can monetize to create multiple income streams.
Rewire your mindset. The one thing you can do in this sea of change is to keep a steady mindset — set toward your goals.
Drop playing the victim. Build wealth that can withstand economic changes. Set aside money for emergencies and invest your disposable income as much as possible.
Hire a Money Coach
It’s hard to do it alone. Hire a money coach who hears what you need and is aligned with your values.
Understand how financial advisors can assist you and how they get paid. Then, increase your financial literacy by learning about how the industry works and how you can benefit from it.
Bringing It All Together
Economic uncertainty is the current reality worldwide. If you’ve never taken stock of your financial health, now is as good a time as any. Set aside money for emergencies, create multiple sources of income, and invest a portion of your income.
Finally, get the help of a money coach you can work with to help you achieve your goals.