Financial Resiliency to Withstand Turbulent Times
Let’s be honest—between market dips, headlines shouting about recessions, and your social feed blowing up with hot takes, it’s easy to feel anxious about your financial future. If you’ve recently caught yourself refreshing your Stocks app multiple times throughout the day, you’re not alone.
But here’s the good news: You don’t need to predict the market to stay financially secure. In fact, trying to time the market or jump on trends often leads to more stress and worse outcomes.
We’ve recently experienced days where the market has declined by 3% and then goes on to finish the week in positive territory. This is because when new information is released, market participants analyze this new information and then incorporate it into the price of stocks and bonds.
During volatile times, I focus on creating additional margin within your financial life. I recently listened to a podcast episode where behavioral finance expert, Carl Richards, shared a calming, practical framework for individuals seeking to build resilience with their finances.
Here’s a breakdown of his approach:
1. Start With a Mental Reset (Yes, Even a Hug)
Feeling nervous about your portfolio or job security? Totally normal. Before making any decisions, give yourself a moment to breathe. Carl even suggests something as simple as a hug from someone you love. When your body is in fight-or-flight mode, your brain isn’t wired to make smart choices. A simple hug can do wonders for calming your emotions & helping to make sound decisions.
So before changing your 401(k) contributions or selling stocks from your brokerage account, take a deep breath. Calm minds make better financial decisions.
2. Embrace Simplicity Over Complexity
When markets get shaky, complexity becomes your enemy. Overanalyzing investment opportunities or chasing the “stock markets next move,” can increase stress and lead to mistakes.
Instead, simplify.
- Consolidate accounts where it makes sense.
- Know what you own & why you own it.
- Stick with a clear investment strategy that you understand.
- Automate what you can (savings, bill pay, investing).
The goal isn’t perfection—it’s clarity.
3. Focus on What You Can Control
You can’t control the market, interest rates, or what political leaders will do next. But you can control how much you save, where you spend, and how you react.
Start here:
- Keep a healthy savings rate—ideally 15–20% if you’re in a stable job.
- Consider tax-loss harvesting with investments that are currently down.
- Rebalance your portfolio if it’s drifted too far from your target allocation.
This keeps your finances solid, no matter what headlines say.
4. Make Small Moves That Strengthen Your Resilience
Improve your personal financial resiliency during times of turmoil through the following:
🔹 Avoid New Financial Commitments
This isn’t the time to take on extra subscriptions, a car loan, or a massive home remodel. Keeping flexibility gives you room to breathe if your job status changes or income takes a hit.
🔹 Audit Your Spending—But Don’t Slash Everything
Review where your money is going, especially in subscriptions, convenience apps, or unused tools. Cut what doesn’t align with your values, but don’t deprive yourself.
Spend intentionally instead of reactively.
🔹 Replace “No” With a Bigger “Yes”
Instead of just saying “I should cut back,” ask yourself, “What do I want to say yes to?”
Do you value travel? Freedom? Time with family? Use those goals to guide your financial decisions and align your spending accordingly.
Final Thought: Margin > Maximization
Within the tech industry, optimization is often a primary focus—performance, efficiency, return. But when it comes to your finances during uncertain times, your biggest asset is margin.
Give yourself the space to pivot, adapt, and stay calm. You don’t need to have all the answers, just a steady framework.
And remember— stock market volatility is the price we all pay to be compensated with the returns that will lead to financial independence. Instead of focusing on trying to find “safe” investments within the market, I encourage you to assess how you can build resiliency with your finances today.