Even in “normal” times, it’s hard to make good financial choices. With today’s increased uncertainty, the challenge is even greater. In a recent Grand Rapids Business Journal, Steve Starnes, MBA, CFP® describes a process for avoiding expensive money-management mistakes during the heightened medical, economic, and financial unknowns.
The process begins with an approach similar to one that many medical professionals use when navigating uncertain conditions. By clarifying what is known, what the goals are, and what options are available, you can make better medical and financial decisions alike. In times of great uncertainty, it helps to follow this sort of process, and repeat it as the situation evolves.
Steve adds three additional ideas to facilitate effective decision-making while reducing the stress levels involved.
First, he recommends taking it one step at a time. It’s okay to make a few smaller decisions based on what is currently known. Hold off on making the bigger ones until we know more.
Second, he advises leaving yourself a flexible “runway” for managing your money when the future could go either way. Maintain an appropriate mix of conservative investments for safety today, and growth-oriented investments for the future.
Last but not least, don’t forget to celebrate even your smallest decisions. Even when we don’t know what the future holds, appreciate what you are doing today for yourself, your family, and your community.
To learn more, read Steve’s full article here.