If you are into preparedness, these blips probably won't worry you. If you are a speculator, take a deep breath or something.
The thing with the financial markets is that there are ALWAYS ups and downs. People may get an "in" on something, like Bitcoin, then going out and mortgage their house in order to "invest" in this new (unbacked, unregulated) currency. Those people aren't going to survive long if that is the extent of their financial planning.
A prepper, on the other hand...
- is debt free, including credit cards, student loans, the car, and the house
- has a significant (liquid!) rainy day fund which could see them through a year or more of unemployment
- pays their bills on time
- has multiple sources of income
- has their investments spread over a wide range of products (a Roth IRA, a 401k, real estate, mutual funds, some gold and silver, maybe an early buy-in to Bitcoin)
- never buys when the price of something (stocks, Bitcoin, house, gold) is rallying at the top of the market
- won't bet the house (literally or figuratively) on a "sure thing"
- understands the foolishness of day-trading and opts for a buy-and-hold strategy with their well-researched, well-understood investments (timing the market is for idiots and AI computers)
In other words, if you have your financial preparedness planning under control you can glance at the latest financial headlines without having to take a Xanax. The price of most things is cyclical and depending on the product can be quite volatile but with a well thought out plan and no panic buying/selling you will live to enjoy a comfortable future.
No comments:
Post a Comment