Avoid borrowing money, especially to invest, as debt is the primary danger during economic downturns. Assess your ability to survive for 6-12 months without work and save accordingly to avoid risking necessary funds in volatile markets.
Practice emotional detachment from market fluctuations and avoid getting caught up in the ’thing of the moment’ or FOMO. Approach investments with specific principles, focusing on what you understand, and view market downturns as opportunities to buy desired assets at a lower price for the long term.
Follow the advice to buy S&P index funds, consistently put money in, and avoid daily market fluctuations. This approach is considered both economically successful and emotionally less stressful, leading to a potentially nice nest egg over 30-40 years.
Recognize that no system is foolproof, no market fully rational, and no generation exempt from irrational exuberance. This humility helps protect against economic pitfalls by acknowledging how easily one can forget past lessons and become overconfident.
Continuously question and be curious about financial decisions, rather than being overly confident. Those who are constantly curious tend to end up on the winning side or at least the better side of economic situations.
For those who can hold their investments and avoid borrowed money, staying invested in the stock market for 10-30 years tends to yield better results, even through crises and crashes. Being an optimist has historically paid off more than being a skeptic who sits out the market.
Engage in detailed budgeting to understand your income and expenses, making decisions based on financial reality rather than ‘a neismatic fog of unknowing and dread.’ This practice can be surprisingly soothing and helps ensure debt is serviceable and that you have necessary cash reserves.
When feeling anxious, spiraling, or overthinking, pause and ask yourself, ‘Would it help?’ This question acts as a mindfulness bell, pulling you out of habitual thought patterns and reconnecting you to your wiser self, helping to clarify if frantic thinking will actually change the outcome.
Engage in a meditation practice like TM to settle yourself and develop an ability to calm yourself in other stressful moments. Consistent practice can lead to quicker access to a state of stillness and provide a familiar place to return to through breathing and focused thought, even without a full session.
Schedule every task, no matter how small, on your calendar with an estimated time block. This method, known as time blocking, ensures tasks get done, helps accurately estimate what’s possible in a day, and prevents overestimating your capacity.
If an answer is going to be no, or if a request doesn’t align with your priorities, respond immediately with a ‘quick no’ rather than delaying. This prevents spiraling anxiety for both you and the person awaiting a response, and often no elaborate explanation is needed.
Employ timers to allocate specific durations for tasks, forcing completion within the set time and combating procrastination. Utilize app blockers to prevent distractions like internet browsing and social media, enhancing focus during work periods.
Block out dedicated time for sleep on your calendar to ensure adequate rest, especially when working early mornings. Consider taking 1-3 milligrams of melatonin if necessary to fall asleep at a decent hour and avoid staying up late, which can negatively impact the next day’s productivity.
Adopt frugality as a family value, distinguishing it from cheapness by allowing splurges on important experiences (like vacations) while being conservative on other purchases (like cars). This can be framed as ‘recreational frugality,’ making it a game to avoid overspending.
Periodically declare ‘months of austerity’ within your household to curb excessive spending. This practice helps to re-center financial habits and prevent things from going overboard.
Acknowledge that periods of intense productivity can lead to a ‘complete loss of serendipity’ and harm relationships. To mitigate this, cycle between ‘super heads down’ work phases and periods of ‘over-investing in relationships’ to maintain connections and balance.
Actively work to shorten meetings, recognizing that much time can be wasted in longer sessions. This helps to maximize productivity and minimize unnecessary time commitments.
When considering sharing personal information, evaluate if the revelation is useful to the audience, normalizing experiences and providing value. Avoid oversharing details that are not genuinely helpful or relevant to the broader conversation.