What To Focus On When The Markets Goes Down

It can be pretty discouraging when the stock market goes down like it did in August.  You save and save and save. You invest faithfully via your retirement accounts and other accounts, keeping your eye on your long term goals.

But sometimes when the market stalls, or worse, has a free fall like it did in August, it can feel pretty dispiriting and you may feel defeated or anxious.

This is the time to shift from thinking about your retirement and non retirement accounts and to focus on other parts of your financial life.

For example, aspects of your financial life that are going well.

Focus on how well you are doing in the following areas (hopefully these apply to you, if they don’t then step back and create your Spending Plan):

  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, keep your sights on these areas instead of your retirement and non retirement accounts.

There are more parts to your Balance Sheet and your financial life than those invested in the stock market, and focusing on another area will keep you feeling positive and keep you committed to your spending and savings habits.