How to Have Peace Amid Economic Uncertainty
Help! I’m surrounded by news reports & social media posts that are fostering fear. It seems that everywhere I turn, and likely you turn, we are faced with this current trend. It could be easy to succumb to the headlines around us and become anxious and fearful. I don’t want to live that way, and I don’t expect you do either. I was reminded of the teachings of author, Ron Blue, during the 2008 market pull back and again during COVID. Ron has over five decades of experience in changing markets and economic times. So how can we live in peace amid uncertainty? Here are some practical, proven ways inspired by Ron.
Recognize fear is a normal human response to uncertainty. My fearful response is my natural default response. Truth and faith are the best ways to combat fear. News and social media require an audience, negative headlines draw an audience, remember their modus operandi and resist the temptation to bite their hook. I was listening to a podcast recently where best-selling author, Rick Warren, provided some insightful counsel: “Stop watching political talk shows and stop watching the news. You can get your news from other ways. The news is built on conflict, so they want to create conflict. And politics is built on having an enemy, so they want to create an enemy”.
Another truth is that economic uncertainty is certain. I find it interesting that we experience cycles of uncertainty throughout our life and yet, when the next cycle comes, we are surprised. No one likes uncertainty but life is simply uncertain. We successfully overcame uncertainty in our past, we will do it again!
We can be a thermometer where we measure what is going on but where we have no control over our environment. Or we can be a thermostat, where we control our environment as we choose our focus and make our financial choices.
May you enjoy peace regardless of your circumstances.
The only thing we can control beyond what we focus on is how we choose to use our money. The key principles of money management that apply to any economic conditions or financial position are:
- Spend less than you earn
- Avoid debt (especially consumer debt)
- Maintain some liquidity
- Set long term goals
If you have lived by these principles, you will find peace about your situation much easier. Rest assured you have done what you can and will weather uncertainty. If you are not following these principles, make the necessary adjustments so that when the next cycle of uncertainty arrives you will be able to weather it more easily.
The following time-proven principles of investing will also apply to any economic scenario:
- Maintain a long-term perspective
- Seek wise counsel
- Diversify (alternative investments beyond stocks & bonds can be helpful)
- Monitor your anxiety
In addition to acknowledging truth, faith can be armour in our fight against fear. Everyone has a worldview, these are the guiding beliefs by which we make decisions and frame our view of the world. There is a range of worldviews. My worldview is based on my belief that there is a Sovereign Creator that is the Owner, Provider, and Protector in our lives. I need to be wise and follow proven principles, but I can have faith that my Creator cannot and will not fail me in times of need. This faith gives me hope that I am not alone in my fight against fear and that things will work out.
In summary, fear is a natural response, but we over come it by focusing on truth, protecting our mind, following proven principles, and exercising faith. May you enjoy peace, regardless of your circumstances.