In a world where headlines shift by the hour and markets react to news before we’ve even had our morning coffee, it’s easy to feel unsure. Whether it’s unsettling geopolitical developments, economic gyrations, or simply the unpredictability of day-to-day life, external volatility can seep into our internal world and stir up worry.
In moments like these, it helps to pause and reflect upon aspects of our lives where we can find solid ground. You may not be able to control the economy, the news cycle or public policy in the moment, yet there are ways you can ground yourself financially and emotionally.
A Foundation of Calm
In the past, you have made good decisions, and acknowledging them can help soothe you in the present. During past periods of stability, you may have sown those seeds through good financial planning. Now is the time to look upon the garden you’ve grown and appreciate the diligence and care that went into it.
One such place to shine a spotlight is your emergency fund. Knowing that you’ve set aside cash in high-yield savings accounts or CDs can give you a sense of confidence that your immediate expenses are covered. Whether your emergency fund represents several months of expenses or more, you can think of it as a stability fund – a resource designed to help you breathe easier when things feel off-kilter. Even when facing an unanticipated expense, like an emergency trip to the vet with your adventurous cat, or simply feeling a shift in your day-to-day risk tolerance, this fund is there to help you avoid reactionary financial decisions and perhaps sleep a little better at night. Think of it as your personal buffer against the unexpected – a way to breathe easier when the world feels anything but calm.
While CDs and cash savings provide a lot of certainty in the short term, they offer little growth in the long run. Your diversified investment portfolio is the opposite and is designed for long-term growth. Knowing short-term needs are covered by your stability fund allows you the flexibility to invest more broadly. Acknowledging that you’ve saved diligently through your employer’s retirement plan or have the right insurance in place to protect your home can also provide a sense of stability.
Taking this opportunity to recognize the progress we’ve made and how well our “past self” may have set up our “present self” to weather periods of instability can go a long way toward fostering confidence. Being mindful invites us to recognize the work we’ve done and to trust that we’re more prepared than we feel in the moment.
Gratitude: A Financial Superpower
When we feel pessimistic, shifting our focus toward gratitude for the work we’ve already done can help combat settling into a negative cycle. Expressing gratitude signals to the body that, in this present moment, things are alright. At North Berkeley Wealth, we gather for a Friday morning gratitude meeting with our entire team, taking time to reflect on positive moments from the week. Consciously going through a gratitude exercise can lift your mood, help you navigate challenging moments, and be a powerful way to reframe your perspective.
Whether it’s recognizing the benefits of a historically low mortgage interest rate you were able to take advantage of years ago, or seeing that final student loan payment on the horizon, these financial milestones are powerful reminders of the progress you’ve made.
Taking a step back and acknowledging your accomplishments can establish a new mindset, making your financial decisions more intentional and aligned with your values. In celebrating small wins or simply appreciating what you have, gratitude allows you to approach your finances from an open-minded perspective. You can think of gratitude as a financial superpower, allowing you to feel more empowered and ready to face whatever challenges lie ahead.
Clarity Within Uncertainty
While you can’t control the stock market, inflation, or global events, you can control your perspective. Rediscovering certainty isn’t about eliminating uncertainty; it’s about finding clarity within it. Often, that starts with reflection, gratitude, and reconnecting with the foundation you’ve already built.
At North Berkeley, we work with clients to determine where they are in their financial journey and help implement plans to put them on a path toward financial security. As advisors, we understand the importance of aligning your financial goals with a deeper sense of clarity, bringing about peace of mind.
