May 1, 2020
Do you know how to take advantage of all the wealth creation opportunities available during a volatile stock market? Solopreneurs, by nature, tend to work alone and bear the burden of financial crises. Unfortunately, this can lead to panic selling of everything we’ve achieved. Financial struggles can trigger an intense fight or flight reaction inside of us which could lead to drastic changes in how we approach our businesses.
Do you want to learn how to avoid this instinct that we all may face during these difficult times? Are you interested in developing some wealth-building strategies and learning my secrets to emerging from challenging economic situations with your business still intact? Read on and listen to this episode for some approaches and tactics for wealth creation you can implement today!
You will want to hear this episode if you are interested in…
- Reasons the stock market goes through volatile cycles [0:49]
- My 3 “Ps” to avoiding a fight or flight reaction [2:35]
- What you can do today to generate wealth creation [6:28]
- Two bonus “Ps” to consider [8:13]
The three “Ps” to help you avoid a fight or flight reaction
How can you rewire yourself to avoid making a drastic decision when economic conditions are not looking good?? Here are three steps that I go through with my clients that can help calm your nerves and keep you from making rushed decisions.
1. Purpose
What is the purpose of your investments? Think about why you decided to invest your money in the first place and then ask yourself if you will have time to recover once the market comes back up. Revisit your WHY, and weigh the impact of possible debt and interest rates against your intended results over time.
2. Perspective
What do your investments mean to you? Get an understanding of how these changes affect your lifestyle TODAY, and how they will affect you in the future. Try to gain perspective of wealth creation opportunities and focus on what IS possible, rather than focusing on potential losses.
3. Proceed
Make a plan, and then put it into action. Now that you remember why you made your investment and you’ve gained perspective on all the pieces moving in the background, it’s time to move forward. Take productive action that will keep you on the path towards your goals and help keep you focused on your intended results.
What can you do today to jumpstart your wealth creation?
Are you ready to take action? Here are some great ways you can move pieces around immediately for impactful, long-term results.
Invest in wealth-building opportunities while the market is down:
- SEP IRA
- Solo 401k
- Profit-Sharing plan
- 529 plans for your kids
What are some other actions you can take to relieve the stress of this volatile market and bring you peace of mind?
- Turn off investment-news TV and limit your media intake
- Go back to work to take steps towards creating the life you want
- Go through your monthly expenses and get rid of anything you don’t use, or you can do without (apps, memberships, streaming services, etc.)
Bonus: Two more “Ps” to keep you on the path to success
As the market fluctuates, you should keep these two Ps in mind as well:
1. Paper losses
One of my clients calls this “ghost money,” because you don’t see any gains or losses until it’s time to use it for its intended purposes. A paper loss is only on paper, you will only see the loss or gain in value when you go to sell.
2. Purchase
Look at your purchases as an opportunity to take advantage of market volatility. What wealth growing opportunities could you invest in to make the most of this time? Could you put more money into your current investments or maybe open up new ones?
This time could be one of the most significant wealth-building opportunities of your life, so take advantage of it today!
Resources Mentioned
- Download the free, 3-step worksheet at www.gabenelsonfinancial.com\resources
Connect With Gabe Nelson
- www.GabeNelsonFinancial.com/contact
- EMAIL: Gabe(at)GabeNelsonFinancial(dot)com
- Follow Gabe on LinkedIn
- Follow Gabe on Twitter: @GabeNelson1
- Follow Gabe on Facebook
Subscribe to Solopreneur Money