Preaching Financial Discipline While the World’s in Financial Freefall
Most finance blogs this year don’t have much to say – not because their advice is any less valuable or dearly needed, but because they have empathy with those worse off. Most just don’t feel right about ignoring the new realities and blogging about financial discipline like it’s business as usual.
For anyone, this seems like a terrible time to talk about finances. We’re approaching Depression-era levels of unemployment, after all! We risk a painful death from a disease we’re STILL learning new things about. What we do know is that it can leave you with neurological (aka brain) damage and permanently-weakened lungs you’ll have to deal with the rest of your life… assuming, of course, it doesn’t kill you first.
Even worse? America is not dealing with the pandemic well. Like… at all. As of May 17th the US has 28% of the coronavirus deaths worldwide with just 4.5% of the world’s population. These are the type of terrors unseen since times of the Black Plague, and it’s led to 1 in 5 workers to lose their jobs without warning. Those are all bleak numbers, and having government officials unable to effectively lead only exacerbates feelings of despair or ennui. Ain’t no wonder why there’s a lot fewer folks preaching you get your finances in order.
I haven’t been immune to this either. My grand goals of posting near-daily were shuttered as I saw story after story of lives affected by the coronavirus. My main reasons for pushing through are so you can still have someone in your corner during this time. If you’re isolating at home or need to make extra cash fast, you’re going to need guidance and resources on how to get through this.
It Matters
We live in a world where money is what dictates your comforts in life. Our only guarantees are death and taxes, which proves money will, without a doubt, impact you throughout your time on this planet. Money matters matter. If you’re fantastic with your money, you’re always going to be a step above the rest. If you’re not, you won’t be. Simple as that.
It’s Always Important
This is true whether we’re in the worst economic depression ever or the greatest bull market ever seen. Knowing how to maintain financial discipline will carry you through the hard times and send you into the stratosphere during the good.
Financial discipline also gives you a skill set that enhances your life in every aspect. If you can make a plan to reach six figures like I did, you can make a plan to reach a healthy weight. Or start a profitable side hustle. Or manage your time and finally get through your backlogged reading list. It’s always important as it always matters, relating back to my first point. I’m in no way ignoring the new reality of health and employment going poof overnight; instead, I’m continuing to insist that this won’t excuse you for continuing to live in financial ignorance. Doesn’t matter if you’re on the up-and-up or if you’re crashing on the rocks. This is important and needs to be discussed.
It Gives You Control in an Uncontrollable World
There are only two things I can never wrap my head around: infinity, and how we can manage any sort of order in the chaos surrounding us. Our world has always been a chaotic place, one that we attempt to carve some semblance of order from. Sometimes we carve enough to convince ourselves it’s all Orderly and Totally Reliable, which only lasts until the latest chaotic force rips it apart. In our case, that chaotic force is COVID-19. Hooray, it’s proven once again that our carvings are still delicate and prone to change.
Getting reminded of that causes a lot of changes in your mental and emotional states. For me, it’s brought serious worry for others. For you, it might be that, plus fears for the future or pure disorientation. Aggression won’t help as there’s nowhere to actually channel those impulses since everything’s closed. And you don’t want to die or deal with brain damage. Or join the entitled shitbirds protesting, either.
One of my biggest comforts in this crisis is my levels of control. Jess and Corey at The Fioneers touched on this by discussing how preparing for alarming situations eases your own anxieties about it happening. Giving yourself control is inherently tied with financial discipline. The world might be uncontrollable, but you can reclaim your power with more money at your disposal.
How Financial Discipline is Helping Right Now
Anyone looking at the stock market right now would have their minds blown at what it’s displaying. My investments, and those of most investing in index funds, are actually on the rise once more. Those without financial discipline are missing out on these gains, which seem inexplicable given the unemployment rate and business closures.
That is, until you remember what exactly those indexes are tracking. Current events highlight a key point about financial systems: the stock market is not the economy. There’s tons of companies that will never be publicly traded because they’re too small or local to get that far; it’s these businesses that are getting pummeled by the pandemic, not the bigass conglomerates of the S&P. Said conglomerates have already shifted their workforce and business operations online, allowing remote opportunity to continue flourishing. Can’t say for how long that will last, but for the time being this will help boost the wealthy further. If you weren’t able to take advantage of it now, start learning about this stuff so you can on the next go-around. Your future will be all the more secure for it.
What are your thoughts on talking finance during these depressing times? Do you agree with me that it’s necessary, or think financial media should go live under a rock?
I think that if we do talk about managing finances right now that it should be with empathy and recognition that not everyone has made the same choices we have. We can kindly share things that have and have not worked for us and gently point those in need in the right direction. It’s easier to persuade people to invest when the market is doing well, but it’s more difficult to persuade them when the current economic situation is tenuous and unpredictable. No one knows how long they’ll remain employed right now, so it’s tough to send newbies into the market now. If anything, we can teach them how to manage what they have and figure out how to rein in current expenses, so they’re better prepared should they face job loss or if they’re already unemployed. There’s much we can do in a kind and respectful manner. It’s never the wrong time to help others figure out a bad situation. Judgment has no role in helping others, but this is definitely not the time to judge anyway.
100% agreed Katie, that is a crucial point. I should have you read my articles before I post them so I can add your perspective. I hope this didn’t come off as judgmental; it’s really hard to admit to yourself you should learn about it, and the last thing we need to do is discourage others from the path.