Kiplinger’s magazine ran an excellent piece in their February issue on how to cope with financial stress. The article highlighted six key tactics to deal with a shrinking portfolio:
1. Everything passes. Financial goings-on are cyclical, like most life events, so just wait out the negative cycles.
2. Exercise. Working out can help with any type of stress.
3. Know why type of investor you are and try to work through questions you have with financial advisor.
4. Don’t watch the news. This is a no-brainer; if the news is negative not watching will help with anxiety about market conditions.
5. Stress is all about control so focus on your household budget and try to reduce spending.
6. Connect with friends, eat good food, and get back to basics. Going back to core activities can ground some people, so make sure you socialize and enjoy the simple things in life.
I agree with all six Kiplinger tips and, moreover, would advise folks to utilize the same tactics during good times as well. Conventional wisdom says that making money work for you is all about the numbers, stock market performance, and frugal living and while these factors are important, controlling money and leading a good life is mostly about getting the psychological aspects right.
Financial Stress and the Psychology of Money
Kiplinger’s magazine ran an excellent piece in their February issue on how to cope with financial stress. The article highlighted six key tactics to deal with a shrinking portfolio: