During bear markets it is so easy to run into a wall of worry. We all know that market performance is completely outside of our control but that doesn’t stop us from worrying about it. In this article we examine those worries and how best to prepare for uncertainty in our future.
As women we have unique roles in the universe. According to Shelley E. Taylor, Ph.D., a psychology professor at UCLA and author of The Tending Instinct, “a woman is biologically hard-wired to nurture, provide comfort, and seek social support in times of stress”.
So, it is no surprise that we tend to put the needs of others before our own. It can sound counter-intuitive to take care of ourselves first (like putting on your oxygen mask first on an airplane). However, taking care of ourselves first can help minimize stress and worry over time, particularly when it comes to our finances.
The most common financial worries
Financial worries are almost universal for women and vary depending on the stage of life. Younger women tend to worry more about
Older women are more concerned with
Risks: What we can control and what we cannot control
Our concerns are warranted! Most women are predisposed to biological, economic, and cultural forces outside of their control.
Worries are always amplified when the economy is under duress. More than ever the things over which we have no control are crystal clear. Risks that we have no control over is known as systemic risk. It is “system” wide. Systemic risk includes
That’s why the things we do have control over matter. They matter a lot! Being thoughtful about these factors can not only ease our minds but also position us to be more financially successful. We have control over our
Having this awareness allows us to recognize and focus on the areas we can control. Create a financial plan. Set SMART goals. It may sound overwhelming, but the best way to tackle it is taking it one step at a time. 70% of men seek advice from a financial advisor vs only 41% of women. Yet female investors tend to outperform men by .4%.
Working with an advisor can help to organize our financial lives in ways that make sense by reframing the process. This helps us position ourselves to achieve our goals with peace-of-mind along the way. We often have limiting beliefs about our ability to earn, or even our ability to spend. An objective third person is a great resource for brainstorming and opening our eyes to new pathways. And yes, you can have your cake and eat it too, just within reason.