Let’s talk about the headlines (and your wallet)
Originally published on Substack
I know. You’ve seen the news. Between the strikes in Iran and the headlines about the Strait of Hormuz being blocked, the world feels a little more fragile this week than it did last.
I’m seeing the same thing you are: gas prices creeping up toward that $4 mark (or $5 if you’re in the city), and the stock market looking like a heart rate monitor after too much espresso. It’s enough to make you want to pull every cent out of the bank and hide it under the mattress.
But we aren’t going to do that because we do not make decisions based on fear.
When things get uncertain globally, the economy reacts. But eventually, it lands on its feet.
Here is how we’re going to handle our money while the world figures itself out:
1. Stop Touching the Dial
When the market dips because of war, your first instinct is to “save” your money by selling. But that isn’t saving; that’s just making your losses official. Unless you need that money this afternoon to pay rent, leave it alone.
The market has survived every conflict of the last century. It will survive this one, too.
2. Tighten the Belt on the “Variable” Stuff
Energy is getting expensive. When oil prices go up, everything that travels on a truck (from your avocados to your Amazon packages) or gets manufactured in a factory powered by energy, gets a little pricier. This may be the month you skip the “just because” shopping. Keep a little extra “cushion” in your checking account for the utility bills and the gas pump.
A little liquidity is the best weighted blanket for anxiety.
3. Don’t Chase the ‘War Gains’
You’ll hear people talking about “buying gold” or “defense stocks” or “oil futures.” If you aren’t a professional trader, don’t try to be one now. Chasing a trend when it’s already in the news is like trying to catch a train that’s already left the station.
Stay the course with your boring, high-quality investments.
Stability is sexy in a crisis.
4. Control the ‘Controllables’
We can’t reopen the Strait of Hormuz ourselves. We can’t dictate foreign policy. But we can look at our own budgets, make sure our emergency funds are solid.
The world is noisy, but your financial plan should be quiet. If you’re feeling shaky, turn off the 24-hour news cycle for an evening. Go for a walk. Check on your neighbors.
We’ve been through “unprecedented times” before, and we’re still here.
Your money will be, too.
With lots of love,
Your godmother Ada
P.S. I want to hear from you. What’s one small thing you’re doing this week to find a little peace of mind? Tell me in the comments. I’ll be reading.
