It can be discouraging when the stock market losses occur. You focus faithfully in your retirement accounts and in other accounts. Also, you focus on your long term goals.
But sometimes when the stock market stalls, or worse, has a free fall, it can feel dispiriting.
It may feel defeating.
What To Focus On
When stock market losses occur, it is time to shift from focusing on retirement accounts and on non retirement accounts and to focus on other parts of your financial life. Those other aspects of your financial life that are going well.
Focus on how well you are doing in the following areas.
1. Living below your means.
2. Controlling impulsive purchases.
3. Staying true to your savings rate
4. Maintaining the value of your home via it’s upkeep.
5. This one’s a little risky, because it’s macro levers are outside of your control….but let’s also include: Your home equity
6. Living debt free.
So, focus on these areas instead of retirement and non retirement accounts.
Hopefully these apply to you at all times as well as during stock market losses.
Spending Plan
If they don’t then consider creating a Spending Plan.
A Spending Plan is a plan you create that projects your discretionary and non discretionary spending.
It takes into account your past spending as well as what you intend to spend in the future.
There are more parts to a financial life than those invested in the markets.
Focusing on another area will keep you feeling positive and keep you committed to your spending and savings habits.
Next Step
Ready to take the next step and work with a fee-only CFP? Reach out to schedule a Discovery Meeting to learn more.