On weathering this economic uncertainty
A reader wrote to me the other day to ask if I would talk about weathering these uncertain economic times (tariffs, a tumultuous stock market, etc.)
I don't have a magic answer to solve anxiety about this (if I did, I would be a lot richer), but I can tell you how I cope, and if it helps you, great!
Before we start, I want to recognize that I write all of this from a place of many privileges; I have never gone hungry, I have never been without a home, I have never been an immigrant, I've never been a racial minority, I do not have any serious physical disabilities, I am fortunate to even have money in the stock market to lose, and on and on.
As a result, my perspectives in this post will probably be the most helpful if you also experience some of these privileges; I am writing through this lens because it is what I live and understand.
I think it would be presumptuous of me to try to write from some other lens, but this is a limitation, and I hope you will read my post with this in mind.
1. I am not looking at any of my investments
I have zero interest in calculating how much my investment "value" has gone down.
Why?
Well, for starters, I can do absolutely nothing about it, so checking my balance isn't useful. Rather, it is a recipe for sadness.
(Which is exactly how I feel about those apps that show how many people unfollow you on Instagram every day. Like, why would I want to know that? It's unhelpful!)
Also, I do not plan to withdraw any of my money anytime soon, so the losses are theoretical at this point, just like my gains were. Losses and gains are only real when you sell.
Also, also (heh), knowing my investment balances does not change my strategy at all. My investment routine is to just keep chugging along with regular contributions regardless of whether the market is up or down.
So for me, ignorance is bliss.
If checking your balance every day is helping you in some way, carry on. But if it's just making you miserable, might I gently suggest that you stop looking?
Join the Putting Our Heads in the Sand Club with me, ok? 😉
2. I focus on what I can actually control
You will recognize this as a running theme regarding how I deal with hard things!
I'm sure you remember that was my focus during my divorce, when so much was out of my control (including my bank account, which was teetering dangerously close to $0.)
I can't control other people, I can't control outcomes, but I can control the efforts I put out into the world.
I can:
- save my money
- cook at home
- pack my lunches
- buy secondhand
- reuse and mend things
- participate in a sharing economy (hello Buy Nothing groups!)
- help others who are suffering
- advocate for those who are suffering
- love my neighbors
- serve my patients well at work
- take good care of my body and mind
And all of those things will be better uses of my time than focusing on what is outside of my control.
3. I maintain hope that things will get better
I know some people poohoo this kind of outlook, but unfortunately (fortunately?), I seem to have been designed with an optimism gene from birth.
Whether it makes sense or not, I maintain a belief that hard times will not last forever, that the sun will come out after the rain.
While I see many, many disturbing things happening right now (and I will not say more for fear of opening a whole political can of worms), I am hopeful that even this is temporary.
4. I have some confidence in myself
In the comments on my post over on Elisabeth's blog, as we were discussing optimism, I said that my optimism is not just a, "Things will all work out." feeling, but more of an, "I know I will figure out ways to handle things." kind of belief.
I have weathered some tough things before, some of which dragged on for a very, very long time. So, I know I can weather hard things in the future as well.
Sometimes when Lisey calls me to tell me about a problem or a hard decision she is facing, I say something to her like, "I know you will figure this out."
I have oodles of confidence in Lisey's ability to get out of a pinch or get through a hard time, and that's because I know she's done it before!
And I feel the same about myself.
I am capable. I can pivot, I can adjust, I can adapt, I can survive.
Whatever comes down the pike, I feel sure that I will figure out how to handle it.
Thank you, Kristen. Wise as usual 🙂 My favorite saying is "Faith is not about everything turning out all right. Faith is about being okay however things turn out". I have faith that I will survive whatever life throws my way. Best I can do is to try to help others survive too. As you do, daily.
@L, Love this and I agree - feeling/knowing you can find your way through tough circumstances creates confidence and comfort.
@L, love that
Like you, I am choosing to not worry about it, because we allll know how unhelpful worry is. Its leads to making rash or not well thought out decisions, especially about money. I am keeping my nose to the grindstone and continuing to save money from each paycheck, knowing that the market will bounce back as it has in the past. Is that account a big deal for me? Yes. But so is my peace of mind and I know that right now, I cannot change or reverse what is happening. So I move forward, peacefully, knowing that I am resilient and believing that through my steadfastness, I will be OK.
I am one of the unfortunate people that will be retiring soon, so my money is important. But I believe (and this is just me) that it won't be as bad as it was in 2008 when I lost a ton of money. But then again, I was able to make up that loss plus more to get where I am today. Will I be OK? Yes, I think so. Just gotta wait and see because like you said, you shouldn't worry about things you can't control. And you can't control the stock market.
@Maureen, a thing to remember about retiring is that there is still an investment horizon - it could be 30 years if one lives a long time. For many retirees, there's time for the invested funds to recover.
Yes, this is a very very good thing to remember! It's not like you need to withdraw every single penny on the day you retire.
Yes @WilliamB. Hopefully Social Security will still be there when I actually do retire. From what SS tells me, my husband and I will have more than enough while we are both alive so we won't have to touch our investments until the government says so. Right now we are still socking our money into savings and investments while I do work.
I am worried, but not as much as I used to be because we have been saving all along (but medication helps!) LOL
@WilliamB, Ooohhh, I like this thinking. Very true.
Such great advice, Kristen. And I think it is such a blessing to have honed these life skills in times with less uncertainty. It IS a skillset to know how to cook, shop sales, say "no" to commercialism, etc. For some people, the new economic realities will hit hard because, not only will they have been surviving on razor-thin margins, they will suddenly have to radically adjust their spending habits.
Again, so many caveats about privilege. But people who are wise with their money and spending will likely more easily weather the storm than those who are not used to approaching life from a wise stewardship perspective.
Very true. It’s good to be reminded that cooking and budgeted shopping are indeed a skillset. A very valuable skillset during tighter times.
Let me start with an entirely off topic comment: Lisey's non-purple hair colour is also very lovely!
As a European who is employed by an American corporation my interest in current economic measures concerns more than just stockmarket or cost of living.
My response to the current economic upheaval is pretty much along the lines of your own Kristen. Both in regards of practical and frugal measures, and in self care. Knowing yourself is one aspect of that. I know I respond ill to news reels so I do not watch news - instead I read news and background in national and international newspapers, online, in an effort to get a fuller understanding of what's, how's, and why's.
How does she look good in every hair color???
She has had black, brown, blonde, purple, turquoise, red...and I'm probably forgetting some.
@Kristen,
I don't know the "how", but it's true - she looks so pretty, whatever hair color she's rocking!
I could not have put it better myself Kristen so I have nothing to add.
I've been feeling very anxious about the economy lately so thank you for this!
@Sophie in Denmark, Can Denmark just hurry up and annex California? We could export warmer temperatures, sunshine, fruits and veggies.
This was the perfect morning to read this...thanks, Kristen!
I'm doing basically the same things, plus making sure my investments (such as IRA) remain the the proportions I planned. For example, when the stock market goes way down I put my new funds into stocks and not bonds.
If the Commentariat is looking for more advice, including from other perspectives and (less) privilege, I strongly recommend The Color of Money newsletter by syndicated financial columnist Michelle Singletary. She's been doing this for decades, including helping individuals via her church ministry service.
https://wfsites.websitecreatorprotool.com/michellesingletary/home.html
@WilliamB, Nice to see Michelle's column is accessible other than via a Washington Post subscription.
Well said as always, Kristen. I'm pursuing pretty much the same course as you are, except that since I'm already retired, I'm viewing things from that perspective (gulp). On the other hand, I remind myself that I have a paid-for house, a paid-for car, and (so far) zero consumer debt, and that many others are not as fortunate.
Also, my long-time financial advisor knows my age, my situation, and my preferences, and is acting accordingly. And every time I see him, I remind him of my mission statement for investing, as originated by DH's late high school friend long ago when he made DH a small loan: "[DH], don't f*** up or down and lose this s***." Fortunately, my advisor has a good sense of humor.
And speaking of humor, my friends and family are applying a generous dose of that too. My brother just passed along this one from NPR's Marketplace: "Why won't the void answer my screams?" And my irascible-but-lovable neighbor on the other side of NDN said the other day, "Oh, when my investments crash, I'll just go live under a bridge." I replied, "I may ask you to move over."
@A. Marie, Could get a little crowded under that bridge. Especially if people start jumping off it....
@A. Marie, you are welcome to live in manhattan with me and the hubby and kids.
it might be little crowded though.
Gratitude helps me. Helping others helps me. I'm in an odd set of circumstances where economic downturns are financially helpful to me (because they reduce the cost of housing, my biggest expense, and because I make enough to afford food even with inflation) but that also doesn't feel great. It's not like I feel happy that others are struggling. So I put my money where my mouth is and increased our monthly donation to the food bank. And I brought a meal to some community members who just had a baby. And I vote for the changes I want to see in every single election, even the small ones.
These are hard time everywhere. Sending love from Canada.
Yes, agreed. Those of us who are not broke can use our dollars to help those who are struggling.
@Meira@meirathebear, Sending love and apologies from the U.S. What's left of it.
I’m in the “head in the sand” club too. I did buy a new computer a month ago since we were able to and our other laptop was getting old. I am planning on starting a small stockpile of non-perishables that we eat regularly. I really appreciate your blog! Keep up your optimism. ❤️
@TinaM, Thanks for the prompt to remind me I've replaced my laptop, printer and cell phone over the past few months (and weeks!). Now just hoping we will still have our local farmers' market, the power doesn't go off, and the internet doesn't go down. Although I'm developing mixed feelings about the internet....
I second all of this; well-written, Kristen. I also want to add what my financial advisor said to me: when the market is down, you are able to buy more stock than you could before, using the same amount of money you had been contributing. As long as you don't panic and sell, you should be fine.
As Maureen said, I'm going to retire in less than a year and this could possibly hit at a bad time for me, so my plan is to use as little as possible of my retirement money after I retire by remaining firmly frugal.
I *have* been in some bad financial situations before, in which I couldn't afford to eat enough to maintain my weight and I've lived in some substandard housing at times (a 30 year old mobile home that leaked every time it rained, for instance). We worked hard to improve our financial situation and practiced frugality till it hurt. We survived those times, and I'll survive this, too. We all can. This is a group who knows how to do it.
Yes. This is a very very bad time to sell! Our best hope is to hang in there and wait.
@JD, the way JL Collins describes it, "Stocks are on sale!" And all of around here like a sale :-) It's a helpful way of reframing.
@Carla G, LOL!
@Carla G,
Ha, they are!
Helpful reminders; thank you, Kristen. We are all naturally worried about the large picture for the US economy. I would add to your reminders of resiliency, that making some kind of active contribution to causes I believe in and support helps me to build forward. . I want to contribute to a better society. And another gratitude: that in spite of advancing age, I have good dental health. Many of our soup kitchen guests can’t chew very well, so we have learned to avoid foods that are too hard or crunchy. It is a sad time for all of us who care about other people. Prayer helps me too, and the hope that new good things will grow from the ashes. I wear a small medallion of a phoenix..
Like you, Kristen, I'm not looking at my balances and I keep plugging along with saving and investing. I do think things will turn around eventually, though I completely understand (and empathize with) the anxiety many are feeling. I'm not completely anxiety-free about it myself, but as you mentioned, focusing on it doesn't help.
I love your statement, "my optimism is not just a, 'Things will all work out.' feeling, but more of an, 'I know I will figure out ways to handle things.' kind of belief." I think women especially can tend toward underestimating our strength and resilience and this is a good thing to keep in mind.
I'm trying to focus on what I can control and on helping those in my orbit. I also call my representatives with concerns and do my best to support and amplify the voices of people who have less privilege than I do. The impact isn't as huge as I'd like, but it's what I can do and it keeps me moving forward.
One of the best pieces of advice I have ever received was immediately after my husband had a life-changing medical emergency. An older friend who had been through the medical gauntlet with her own husband reached out, and before all her amazing insurance lowdown, doctor tips, etc. she said: "Remember that you can't take care of him--or anything else--unless you take care of yourself first."
I recognize this has many versions--"The gods help those who help themselves," "Put your oxygen mask on first," "Focus on what's in your power," etc.--but this is the one I've found most formative, especially in times of duress. (I've also read enough dystopian literature that what my husband and I jokingly call my "preper-lite" brain is always thinking ahead, especially after his medical emergency.) That also includes mental health, which for me means avoiding most news since it's a font of negativity even at the best of times.
We've done our best to future proof by having a paid off house with small square footage to keep bills low, in an area with cheap property taxes. I didn't anticipate going all-in on gardening, but we've a glut of land and sunlight. In short, we're solid and in a place where we can help and share. I spent the winter buying (second-hand!) and reading books on mini-farming so that I can better provide for our small household and our friends. I've even opened up our garden for friends to grow what they can't/don't have room for. Regardless of what's happening in the world, I can work in a variety of ways to further secure us so we can continue to share and/or donate.
Thank you, Kristen. This is all good advice. I find it hard to follow it sometimes, but it's helpful to have it all laid out like this so I can come back and be reminded.
I, too, have faith that things will eventually turn out alright. I just tend to worry unhelpfully about how I'm going to get through it in the meantime. So I try to avoid focusing on the news and focus more on what I can do, what is actually within my control.
I unfortunately had to take my small investments out because the company I was using suddenly decided to close. Luckily it happened before the stock market tanked too badly, so I didn't lose very much. I'm trying to think of it as a good thing.
I am a human for humanity. I am watching minimal news. Minimal. Trying to stick to local news if possible. I am not checking any of my accounts. I am staying true to my frugal self. I am donating to food banks and food kitchens when I can. I know when the economy is this bad food insecurity becomes a realization for many. Also, the food banks in my area have also had federal contracts recently terminated.
I am worried but trying to remain positive when possible.
@Stephanie, I donate regularly to my local food bank, but thank you for the reminder to step it up.
@Stephanie, food insecurity has long been an issue. It has been especially difficult since March 2023 when SNAP benefits returned to pre-covid levels, but prices did not. If you are able, I encourage FG readers to give and/or work in food banks and community gardens.
I have supported my local food bank and garden for over a decade. I have learned a lot. I hope it's okay to share it here. Firstly, many clients in food banks do not cook like many of the frugal people here. They don't have the equipment, the time, and sometimes not even a refrigerator or a stove. So huge bags of dried beans, rice or bags of oatmeal are not helpful for them. Jarred pasta sauce, pasta, instant mashed potatoes, canned beans, boil in the bag rice, boxed milk, and oatmeal packets are better choices.
Secondly, don't forget salt, pepper, mayo, mustard, honey, coffee, tea and so forth. These are luxuries, but make food taste so much better. Clients are thrilled to receive these items.
Lastly, if you need these services, don't hesitate to use them. Food pantries service people from all different backgrounds. They are there to help.
@Bee,
Thank you for sharing this information. I have said many of the same things when people (not here) complain about people not accepting/eating/using donated foods. If you don't have adequate facilities, equipment, knowledge, time, etc., to cook, a big bag of (lets say) dried beans is not helpful. My son's Scout troop helped fill a "blessing box" in a low income neighborhood during Covid, and it was an eye opener for me....I was advised to buy canned goods that have pull-tops, as some folks don't have a can opener, and many parents/guardians have such severe mental illnesses that their kids have to fend for themselves a great deal of the time. So, things like canned chili, Spagetti-Os, canned/shelf stable microwaveable beef stew, and similar were recommended. We still drop off things at this blessing boxes and another one in our small town. I am hoping to volunteer at our local food pantry some time soon.
@Bee, Thanks for these important reminders. Our food bank also issues these tips on what to donate and why. Also, we have a bunch of Little Free Food Pantries in our town, and these same tips are regularly attached to help people learn responsible donating.
@Bee, We give toilet paper and female menstruation supplies to our food bank. On the days folks come in to do their shopping, those items are among the first to go.
I'm weathering these uncertain times by doing many of the same frugal things but on steroids. I'm also doing more to boost my emotional well-being and that of my loved ones. Perhaps more importantly, I'm also making sure that my voice is being heard by leaders to restrain or prevent further damage.
I found this post really helpful. Perhaps most helpful was the part that optimism isn't just a blind belief that everything will work out, but rather a belief in yourself & your own adaptability. I needed that.
We are very blessed, but my husband & I are both job searching, and.... let's just say this is absolutely an abysmal market to be job searching in. To the point of adaptability, it's made both of us more creative in our searching, and more open about what we would consider for future roles. Because at the moment, finding something & getting health insurance is a huge bridge towards reducing what we would need to pull from savings. And, really reminding ourselves that all of our years of savings put us in a position where we don't need full income replacing jobs - we just need something to weather the storm a bit.
@Hawaii Planner, best wishes in the job hunt. Health insurance is so expensive and such a drain on resources. I hope the perfect thing opens for you both.
@Hawaii Planner,
I feel for you both, since two of you are out of work. That stinks!
When I was unemployed, I found that there was a LOT of free help at the local Goodwill Industries hq. (Yes, the same guys that do thrift stores). They now say they served "disabled AND disadvantaged." They consider anyone who is unemployed to be disadvantaged. I got more help from Goodwill than I did from the state workforce commission, and it was all free to me! They helped me with resume writing, practicing job interviewing, dealing with age discrimination, all kinds of good stuff!
It's a weird luxury to worry about the stock market when you can look around and see what devastation is being ... mindlessly? intentionally? purposely? ... inflicted on other people. And their children. Here, yes. But all around the world. I used to tell myself it would be a good day if I didn't wake up in a Syrian refugee camp. Now I can have my pick of so many other locations and circumstances....
My dad was asked by my son for financial advice. My son was a new college grad, age 19, going into a full time well paying job. My dad said, "Save til it hurts and then save a bit more".
I'm not panicking. I am giving more money to causes that have lost funding, I'm growing more food, I'm buying an extra of non perishables, replacing clothes and shoes that need replaced. And taking care of myself and my family.
@Kara,
Your son graduated college at 19?? Wow, that's so awesome! I love what your dad told him, too. I started saving when I started my career in my 20s, and now at (cough cough) 63, I'm so glad I did. I only wish I had been given better advice about investing, risk, etc. when I was younger.
I feel the same. As with ANY investment in stocks, you have to be willing to ride the wave. And I am reminded to be thankful every day that "His eye is on the sparrow, and I know He watches me". My hope is not in my bank account or investments or the DOW, none of which matter in eternity anyway!
As always, I appreciate your honesty in acknowledging that your circumstances are particular to you and you are not in immediate financial jeopardy, given your age and current and potential jobs (nurses will always be in demand, even more so as time goes on although pay rates vary greatly by types of institutions and location.)
For those of us who are older and single, the situation is quite different. Some of us worked hard over the years, often with multiple jobs to meet expenses (so much is so much more expensive when you are the only one paying as opposed to split rent/utilities, food.) but do not have pensions and do not have much in terms of retirement savings because even frugal lifestyles did not allow for much on lower salaries in the places we lived (which were cheaper in some things and more accessible/affordable than others. My big city rent is not cheap and continues to rise despite no or very low income; but I don't need a car or car insurance and I don't have to pay for all sorts of things to maintain a house.)
So, we are dependent on Social Security and Medicare NOT being tampered with so that there are negative consequences. This is OUR money that we paid into and pay currently. There are no freebies here and no Ponzi schemes.
Right now, it is unclear what, if any changes, will be coming.
Additionally, for those of us who are disabled, and on Medicaid from the State, right now is a very very scary time. If the government cuts Medicaid, there is no way our state can continue to fund current Medicaid rolls. (And FYI: for those who think that all those on Medicare do not work, you would be wrong. I continue to work part time and absolutely need that income as I could not live on Social Security alone. I hope I can work till I cannot because I'm dead. Seriously. I happen to work for someone who is also in my age bracket, 70s. Without this job, life would be even more challenging as I have lots of medical related expenses for items that are not covered (Drugs, devices, etc that despite what I pay for Medicare, are not covered, and also not covered by Medicaid.)
These expenses don't go down. NOTHING goes down. In the last year, everything I pay, rent, food, con ed, internet, cell phone, food, business-related expenses and taxes has gone up.
When they gave that "large" percentage increase in SS? What a joke? It didn't even cover the increases in my three medicare health insurance policies! (And I have the supplemental because I could never afford even one of the many tests I require without it. It is an investment in my health and that is how I look at it.)
Food remains a challenge and so I stock a pantry. That definitely cuts some costs.
I attended a very interesting discussion re Happiness a few months ago where the topic was the nature of HOPE, something we need now more than ever.
The leader said "Hope is not being optimistic; it's not being a Pollyanna thinking everything will be fine or better." Hope, she said "is taking ACTION"
It was a huge A-HA! moment for me. Yes, yes. There is always something we can do, even if it is only shifting and attitude or not letting ourselves linger in those times of despair and stress.
In times like these, I do what I can to de-stress, to check my thinking (it's easy to focus on worst-case scenarios and catastrophizing) and to control what I can in terms of expenses (not a lot is discretionary anymore, that is for sure.)
So yes there is cutting back, even in work expenses (which is challenging as I need access to certain media that require subscriptions), as well as food and other items.
More important is the mindset. For the last few months, I and thousands of others have been dealing with major changes to CDPAP program that allows us to hire individuals (Called PAs) to provide needed home care. For nine years I had a wonderful company that handled payment for my one PA and was professional, following all rules.
Now the state has changed how the program is run and it is literally proving to be a life-threatening nightmare for many of us for reasons to long to go into here. Let's just say that many of us may lose our PAs (people you simply cannot just replace; very few around and even fewer who are someone you'd want in your home looking after you.) and they may lose needed income to feed and house their families if they cannot work for us. (It has to do with how the new program is set up, where they could loose their current health insurance AND get paid less!)
To complicate matters, we don't even know if the program will exist if Medicaid cuts funds to the state. It has been the most stressful time of my life, including when I went through cancer treatment, and that is saying something.
I have spent hours trying to deal with a totally incompetent company (and it is not just me; everyone has the same issues) and educating myself via advocacy sponsored zoom sessions (where we support each other as a community as well as provide information and resources).
So right now, I don't know from day to day if the CDPAP program will be viable and whether my PA will have a job (I am as concerned about her as I am about myself. She has been with me ten years and done more for me than anyone else. I need her in my life, and there are no family or friends to replace her.) MAJOR ongoing stress that I work to control, but so far not doing great as my BP and BS numbers are no longer good.
I also don't know how long the person I work for will continue to run his business. At my age, and being disabled and not able to travel on my own and without $ for transportation that I don't have, I need a work from home job. Not a lot of those around for a mid-70s person when you have much younger folks who will basically work for almost nothing
So, I feel very very much at risk. I do my best to not try to anticipate but I don't have a cushion. My taxes for this year alone represent almost 2 months of my pre-tax income. There are few, if any, credits that apply, just my business expenses.
I have lived in my apartment since the 70s and have a degree of rent protection in that I do not pay the current market rate (which would be equal to two months of my pre-tax income!) but the rent increases continue.
There is no option to move anywhere else as it would require a car, etc. and cost more than it does currently. If I'm lucky, I'll die here and not a nursing home. But without a home health aide, I literally am trapped.
I wouldn't mind paying taxes if the government weren't making cuts to folks who need help while giving tax cuts to individual millionaires/billionaires who already don't pay as much percentage wise as we do and to corporations who PAY NO TAXES.
This current economic situation is a disaster no matter where you stand on the politics. The fact that so many are still in denial? Well, let's see how they feel when they loose Medicaid (red states have the highest Medicaid rolls in the country proving that some of those voters clearly didn't think that they might be at risk. I won't elaborate on how they could come to that conclusion but many have now lost government jobs and are at risk of losing more in terms of health insurance and social services. Some are even admitting they made a mistake in how they voted. No comment.)
In a country that is rich in many ways, we have one of the worst health care systems; we have people who through no fault of their own are homeless and hungry.
And we have citizens who could care less if they themselves are not affected.
And we wonder why so many of us have to work hard to contain our anxiety and deal with our increased vulnerability.
And it applies to all age groups and circumstances for working people (those who rely on their jobs for income).
@Irena, every time my parents get an increase in SS, it ends up they either lose money or gain $2. One year they lost $20 with the change in the medicare supplemental plan rate. It's a racket. DH gets the same increase in his military retirement, but usually the increase in the insurance rate (comes out of his retirement) is equal to or more than the increase in pay. Plus the copays and premiums have gone up each year for the past few years.
My younger son is single. At 26, paying a mortgage, insurance, trying to save for retirement, etc is difficult in a single earner home. He is having his gallbladder removed this month and that has cost him almost $1,000 out of pocket just to get the ultrasound, blood work, see a doctor and a surgeon...who knows what the surgery will cost him. He lives very frugally, but it's rough. He did get an out of cycle raise this year along with the regular raise that will help, but it's hard.
Thank you for sharing the view from where you are (a perspective I would feel wrong in even trying to write about!)
@Irena, You have my sympathy. Just when the world seemed to be recognizing that adults need a village too, a big door seems to slam shut. I am hoping the pendulum will turn in the other direction, and soon. I got thru grad school one day at a time. Unfortunately seems like a good time to restore that view.
@Irena,
Hear! Hear! What you have written is priceless! Thank you for your words of wisdom.
I, too, am in my 70s and without husband or family. It gets real scary real fast.
I thought I was going to be able to quit at least one of my 2 jobs but thanks to the stock market mess and the threats about cutting social security, I am going to keep plodding on and hope for the best.
Why we elect mega-wealthy people who are clueless about how the world works (or, rather, doesn't work) for the regular working classes is beyond me. Maybe if we made our elected officials try to live on minimum wage or the amount of Social Security we get, and pay for their health care out of pocket, they'd get a clue. But then again, you are right: they could care less.
@Irena, thank you for sharing your story. I am so sorry for all of your stress and struggles.
@Irena, I'm late to the party, but I wanted to thank you for your well-written personal insights. I wish more people could read this. I had a patient last week, a man in his 40s. Through no fault of his own (he underwent a series of difficult health issues which should have been covered by workman's comp, but weren't), he is reliant on Medicaid for his medical coverage. As you no doubt have experienced, Medicaid is insufficient for his needs, but he and his wife are somehow scraping by. In the current environment, who knows what coverage he will have? I went home from work and promptly emailed my representatives to encourage keeping Medicaid safe, but it felt like a drop in the bucket compared to what needs to be done. I am not without financial concerns (my husband is a government employee, and he carries our medical benefits) but we do have resources to help us carry on. So many people don't. When I find myself getting anxious, I find that it helps to consider people in situations like yours, and realize anew that the fight isn't to protect my personal interests as much as it is to promote justice and generosity in a world where there is too much blatant greed and corruption. I am so sorry that you are going through this.
@Irena, good luck to you. sorry for all the stress and aggravation. sending you hugs, love and caring thoughts.
Unfortunately, I am a natural pessimist and worrier, even in good times. The 2008 recession was very hard for us and we had a lot less to lose back then. I am comforted by the fact that I’m married to someone who has been handling people’s retirement investments for close to 30 years now and our funds were placed in a very conservative position prior to these stock market changes.
In order to feel some control over our many current concerns we’ve also been trying to prepare our household the best we can, slightly increasing the necessities we have on hand, and reducing spending on the non-essentials. My husband, who is naturalized US citizen, is making sure to have multiple forms of proof of citizenship on hand and up to date. I’ve participated in additional volunteering and am looking into more ways to use my talents and interests to help my community. For example, we’ve had a continuously growing number of people here experiencing food insecurity and cuts in budgets to feed them. Multiple organizations in town take donations of extra produce from home gardens, so I’m intentionally growing extra this year, sharing this donation info with my many gardening neighbors, and volunteering to deliver those veggies for them so they don’t need to drive across town. I am now signed up for a Master Gardener class and hope to help teach others to grow their own food, too. In addition to all that, I’ve been taking advantage of community events to learn new things. Building on my skills and self-sufficiency helps me feel more confident about handling potential challenges in life.
Very much agree with this approach, particularly head in the sand regarding investments.
I generally also need to take some sort of actions. My MO is to seek an understanding of the factors that enable a situation and position my spending or time accordingly. Participating in boycotts, supporting certain candidates or causes, etc are a little push toward helping my community be a better place while also damping down my anxiety. I also appreciate the privilege inherent in being able to so this.
Like you, I don't check the balance often. I just keep moving along with the game plan. There have always been dips and surges, but history shows it always rebounds. There was a 37% crash in 2020. I recognize that it was for different reasons, but each crash is for a different reason. Recovery has always happened.
I am retired and can't recoup losses. I am proactive in assuming the worst (the opposite of you). When the T word came up, I withdrew my investments and put them in high interest cds. My hubby is letting it ride (aka slide downhill with his). Mom of five, gramma of 10 - I learned from the pandemic. Since the first of the year I have restocked my pandemic pantry and went through my house reading labels, ex - my hair color is made in Mexico. Six boxes on the shelf. Freezer is full of meat, cupboards full of vegetables. I am friends with area farmers and there is a dairy close by (cows are milked no matter what).
I always plan for the worst and hope for the best. If any of my children and their families ever need to move in, I am ready. I am a caretaker, I have to plan to take care of my tribe.
I just shake my head at times like this and wonder why people seem to be so impulsive about everything.
I look at the big picture in times like this. First, the stock market is up hugely over what it was just a year or two ago. Secondly, right now I have two working cars, a house to live in, books to read, movies to watch, video games to play, gas in my tank and some money tucked away in savings. I also have clawed my way to zero debt. When you have zero debt, life is a little bit easier to manage, at least in my experience. It doesn't mean that it doesn't stink sometimes but it's nice knowing I don't live and die by every paycheck.
@Battra92, Unfortunately, the overall stock market has recently lost the value it gained in the past year. Hopefully, it will correct itself moving forward.
Hi Kristen,
This, all of this! What you said! I think your practical, yet hopeful outlook is the very best way to move through uncertain times such as these. I particularly liked your statement "I know I will figure out ways to handle things". Such an encouraging statement of strength!
I avoid the news, but that is something I've done for literally decades (and I mean literally - since the late 1970s). It is harder to do these days, because of the internet. Some might think I'm like an ostrich, hiding my head in the sand, but for me it is a way to avoid those many day to day things that are out of my control.
I’m taking a similar approach. Also, I’m feeling some weird joy to know that many of the people who will be hurt the most, are the ones who smugly, but unwittingly, voted for it. I hope they’re examining their blind spots right now.
I have had my gas and electric shut off. I know how to get your house out of foreclosure, I also know how long you can continueto live in your house while in foreclosure. I know how to make mac and cheese with just butter pats and water.
With that said some of the thing I did to get through those times.
For my mental health:
1 Put away (actually lost) my cell phone.
2. Went to the library and sat at a quiet table and journaled, read, or was just quiet.
3. Read more books.
4. Watched less tv.
5. Watched more Jane Austen.
To have more money
1. I sold whatever I could. Including my microwave which I used daily. I went 2 years with no microwave. I sold my fancy at the time coffee maker and exchanged it for a french press.
2. For a very long time I asked for money for birthday and christmas and used it for household and family needs.
3. I accepted money from my sister. Which she didn't expect to get back because at a hard time I gave her money and didn't expect it back.
4. My boss gave me gift cards for a bonus and I used them to feed and cloth my children.
5. I did surveys.
6. I did some product surveys which gave me the product to try.
I bought very little
1. I mended underwear and socks.
2. I remade clothes into summer clothes for my children. Bonus both kids were about the same size and my daughter ran out of shorts so he wore her brother's. They were clean.
3. I changed my clothes when I got home from work to save them from spills. I didn't eat at work for the same reason.
No know of this helped my budget all that much. But every time I figured out how to get past these road blocks, I felt like I won. Remember we can get through this together. Thank you Kristen for the place to say this.
@Amy cheapohmom, more Jane Austen, whether watched or read, is always a good thing!
@Amy cheapohmom,
Sadly, with library funds being cut, our public libraries may become less of a refuge, through no fault of their own.
@Liz B., True, at one poiunt I also lived too far to drive to the "local" library so I had to find another quiet pot to be one with my own thoughts. I find I am less pessimistic than others.
I agree with your comments, "I will figure out ways to handle things".
I'm more concerned about the Climate uncertainty that resulted from years of indulgence, neglect, and total indifference. How to get more for less is still being pushed everywhere for things we mostly don't need. We're responsible for this insatiable consuming culture that brought the Climate Crisis, where we ship out our trash to the third-world countries!!! Please look up! As far as I'm concerned, there's no plan(et) B.
@Farhana, Amen to that! We are crazy oblivious to where we're headed. Without our planet nothing else will matter cuz we won't be here.
Uncertain economic times come and go. Being in the retired catagory with all of our investments in the market I have learned just not to look. Husband lost over half his 401k during a downturn & made it back, weathered 2008-09 and recovered with more than we had previously and so many other smaller losses. I do have a theory about the market, if it totally fails, it won't matter where you have resources, they will be gone. Trust in God and do the best you can for others and yourself while on this earth.
@Jennifer G, 100%
I continue to not look at my TSP (Thrift Savings Plan) balance (was able to start contributing in February 2022, have checked balance twice in 3 years). I continue to sock away as much as possible in that account because employer match. I also ignore what my retirement benefit will be when I retire (1 year, 10 months, 17 days...but who's counting LOL). I do have a general idea of how much my monthly Social Security payment will be. Working on 2 goals 1) as close to debt free as possible when I retire 2) house repairs, renovations, etc done during the next 2 years when I have fairly consistent income from my job, so that I can age in place.
@Amy cheapomom's comment has prompted me to add that Jane Austen and her family knew a thing or two about coping with hard times. I think it's pretty well known that JA was an unmarried woman without a bean to her own name (even sister Cassandra had a small bequest from her dead fiance) until she started earning money through her writing. But the year 1816 was the Austen family's 2025:
Brother Henry's bank went bust in early 2016. Several family members lost large sums, and even JA herself lost the little she had in there.
Brother Charles's frigate HMS Phoenix went aground and was lost in the Mediterranean that spring. Although he was cleared of blame, he knew it would be a long time till he got a ship again, so he came ashore on half-pay and lived with his late wife's parents and his three motherless little girls in London.
Brother Edward Knight (the one who got adopted as a child by rich cousins) not only lost a considerable chunk in Henry's bank failure, but was hit with a lawsuit for possession of his Chawton estate. In the end, he had to cut down a lot of timber on the estate in order to cough up a settlement.
The year 1816 was "the year without a summer" for England, due to a volcanic eruption on the other side of the world. Among more major crop failures, there weren't enough flowers for bees to gather nectar, so JA and Cassandra were deprived of their usual honey for making mead--their favorite tipple.
And worst of all, 1816 was the year JA began to feel the symptoms of her final illness. (We'll never know what it was, though Addison's disease, lymphoma, some form of TB, and the remnants of childhood typhus have all been mentioned.) All the other troubles probably only contributed to her decline, which prevented her from doing final revisions on Persuasion, completing Sanditon, or writing any other novels. But those of her final letters that have survived show that her main concern was for cheering others--and she wrote a final comic poem about Winchester races two days before her death. She's my heroine for many reasons, and this bravery is far from the least of them.
@A. Marie, YES! We can learn a lot from Jane.
Thanks so much for addressing this topic! Your blog today, along with all the comments, have helped me so much to sort out my feelings and anxiety about my financial well-being.
As I always say to my husband, our thermostat is set to 60 no matter what is happening in the economy. 🙂 If you live with intention and purpose for your money all the time you are set up for the harder times. Stay ready and you don't gotta get ready.
@Kelly, My favorite words of wisdom from James Brown! "If you stay ready, you ain't gotta get ready."
I learned several years ago to limit the hours of 'news' I consume. I remember my parents watched it while they drank coffee in the morning and then there was the nightly news. These days we have constant access to it.
I take time to go for a walk daily and will listen to uplifting or funny podcasts. Infusing my days with movement and positivity- even for 15 minutes - is such a mood booster. I went through a divorce a decade ago and it would have been easy to turn to alcohol during that time, but I took up running and geocaching instead. Those activities greatly attributed to my mental, physical and emotional health.
Agreed! There is a difference between staying informed and being glued to the news all day.
And I also cheer on the ways you dealt with your divorce. It helps so much if you can find a coping mechanism that is good for you vs one that ultimately hurts you (like alcohol).
@Shelly, Long morning walks with the dog (whichever one I have at the moment, and I always have one) have been my salvation. I tell the dog I'm doing it for him/her, but it's really for me.
Such a beautiful post! Thank you.
There is an awful lot of horriblizing and knee-jerk-reacting going on these days. Instead of assuming the worst outcome, I think longer term, both in the economy over all and the stock market, which always recover. Panicking and selling while prices are dropping just locks in one’s losses; low prices are the time to buy.
Whether investing is or isn't part of your life, this is the time to reap the benefits of long-term frugal living. Knowing hard times are coming (and they are always coming) is a great motivation to make frugal living into automatic habits. This isn’t the time to be wasting money on temporary feel-good stuff, and most of the feel-good stuff is temporary.
It might help people to make a list of all the good things to do and enjoy that are free: walks, the library, listening to tunes you already have, listening to the radio, enjoying the outdoors before it gets too hot, and all sorts of other things that don’t occur to my simple mind (since I still think of a phone as a TELEPHONE for making phone calls rather than a do-it-all tool).
@Central Calif. Artist Jana, yes to "making frugal living an automatic habit". I would add the conscious spending decisions are also part of that. I did realize long ago that it was too stressful for us to be in the stock market so we have simply saved and done the best we can.
I’m gonna’ pray for our country.
You have said it perfectly. I am with you 100% on all counts. And especially that part where being an optimist doesn’t necessarily mean you always think it will all be “OK.” For me,also, optimism means..” I have done it before,I can and will do it again.I have what it takes to get through the tough stuff.” AND always recognizing, as you do, that I am coming for a white privileged place of great abundance relative to much of the world.
I would add that I also have a deep, kind of unconventional type of FAITH.. I believe in a Higher Power and also perhaps, a higher Plan.. finding one’s spiritual center can be a very comforting thing.
AND.. turn off the news!!! I play cards with 3 friends who are so very stressed angry and worried..they watch news all day long and in the evening, lots of news shows too.. I can’t see how this is helping anyone feel better,do better, or sleep at night!!! I read the news in the A.M and that’s it.
This too shall pass.
I love the "I know you will figure this out" advice. SO many times I have beaten myself up for not getting to the "this is okay" place. Figuring it out is a much more reasonable goal, especially in the face of so much uncertainty and inevitable heartache.
I agree with you wholeheartedly! I do NOT look at my 401k/investments. I continue to save and live the thrifty life, and helping others when I can. I don't watch the news / or follow on social because it is so bad for my mental health. I switched from NPR to a classical station for my daily commute as there is ZERO news between songs and its so lovely to listen to - so it helps me mentally have a better drive. The only thing I have done differently is to call my Senators/ Congresspeople weekly to express my opinion on current events. Be reminded that they work for us, their constituents, and it is always okay to politely express your opinion - good or bad.
In 2008 the market crashed and we "lost" a lot of money. Since then we have made more than we lost. This time around we are actually drawing on those investments for living expenses. But, we will be fine. We now live in a continuing care community where, even if we have to move from our independent living apartment to the full-time care center, we will be okay. Hopefully our Social Security income does not go away, though.
Great comment Kristen. I am 74 and thankfully receive the aged pension. It does not cover everything, and I live frugally, but happily , with gratitude.
I have my budget - every Monday take $100 cash out of my bank account and that is for food and maybe a meal - luscious for $10 is still available. When that is gone - that is it.
Every Monday I sit down and grab my receipts and record what I have spent for the week. This has saved me a lot of grief over the last 6 years and has kept me afloat.
I have 6 savings accounts and from my everyday account - pension goes in there, I have set up direct weekly debits to:
1. Transport (I sold my campervan last month - so buses and walking now),
2. Health supplements - I do not do Western medicine unless necessary
3. Internet, electricity and mobile phone,
4. Funeral - I will not have a funeral but Thankful Service by the ocean
5. Rent - this is over half my fortnightly pension. I live in a retirement village.
6. Holidays and clothes
When I first desperately sat down to record what I had been spending on everyday living and saw the totals, I was physically sick and angry at myself for not taking control.
That was about six years ago and now I am proud of myself that I do not owe any money and cut back where I need to at any time.
If I borrow from one account - I have to sell more things on marketplace to replace that amount.
I am in the process of growing my own vegies on my little porch and that will save a lot and be really fresh.
All the best to you all. Don't forget to be grateful for everything in your life - the challenging and the best...barbi
Thank you for sharing this Kristen! Gratitude helps me. I started a gratitude journal recently (inspired by this blog). I also enjoy reading historical fiction, and every time I read a Kristen Hannah book, I think, well, at least I'm not in THAT situation (dust bowl, Vietnam, WWII in Europe, etc). It does help my perspective. It also helps me to reflect on all I've been through and how things turned out.
Not temporary for the innocent people being sent to El Salvador or the hiv positive people losing access to their medication or the students getting their visas revoked…
Some of these things will not pass without action. Being passive is a choice.
Oh for sure, which is why I included things like, "Advocate for those who are suffering" in my list of things that ARE in my control. 🙂
And that's also why I specified that I am writing from my very specific life circumstances, which do not represent other people's life circumstances.
@Nicoleandmaggie, agreed! There are different roles we can all take (I'm still working out what mine is), but inaction IS action.
I am hopeful that my work in healthcare will give me opportunities to advocate for people and use my voice. I know I'm not going to have lots of power as a newbie, but I will try to use what influence I do have.
Yes, I am naturally and understandably freaking out from time to time these last months. I also try to take a deep breath and focus on what I can do… My job for right now is pretty secure, but my husband’s is really iffy, so he is looking at what else he can put/keep in the wings if he needs to apply/network/etc. it is reassuring to accumulate those other job options. Luckily I saw some of this coming, and put most of our college kids 529 money into cash a few weeks ago. I feel really good that we did that just taking it out of the stock market for now. We need those funds every semester, so I am very happy to have them just sit there even though we possibly might be out of making a little bit of profit, I would rather be assured that we have it there when we need it now. And lastly, I am letting our senators and House of Representatives congressperson know how this is affecting our family. Not trying to be political, just stating that anytime there is something going on in government that we don’t like, remember, we can always reach out and share our concerns with those people who are representing us. Don’t know if they will particularly do anything, but it is something that I can do, and I’m going to try to make a difference.
I love your perspective! Investing is for the long term, something we do for years, not days. How we live day to day, (frugally if that is what one chooses) is how we navigate it all. No matter how much I have, I will continue to be frugal because it is a way of life for our family.