Optimism and pessimism can change your investing habits, and the media actively participates spreading the fear. Headlines often accentuate the negative because that is what gets us to tune in.
Why? Because pessimism and cynicism are weirdly addictive. But they can also be destructive – both mentally and financially. Most of us don’t seek out negative thoughts, but when we encounter them, we just can’t turn away. They can consume our minds and affect our mood. It is more difficult, yet more virtuous, to keep a positive attitude – even in bad times – and especially when making financial decisions.
A recent study found that 72% of Americans reported feeling stressed about money in the past month. That stress can drive us to make impulsive decisions in our lives and finances. When times get tough, it’s more important than ever to keep our cool and think rationally.
That’s why we’ve rounded up three tops tips to help you avoid those pessimistic thoughts and make rational financial decisions. Let’s dive in!
3 Ways to Keep a Positive Approach to Your Finances
1. Get All the Facts
We seldom get unbiased and complete information. Our knowledge of current events is largely driven by the news sources we frequent, which is filtered through someone else’s lens. We should question whether sources are reliable or to check that the information is true.
In difficult times like these, we can step back and see the good. We can choose to see the same facts in a different light. We can have a positive attitude. While it may not change reality, it can improve our perspective and ultimately our decision making. Optimism can even work to change your investment behavior for the better.
2. See the Good
From the recent pandemic crisis, and as well as those in the past, we see much good in humanity. Religious, political and other differences can be put aside in a sense of unity. For example:
- Many are donating time and resources making masks for front line workers
- There are drive-by parades for first responders, teachers, students, and high school graduates
- People are sending notes, dropping off gift baskets, chalking uplifting messages on others’ driveways
- Families are having more time together – thus, parents and children connecting on a deeper level
Take a moment to realize all the positive things that are occurring in your life. Try setting aside time each week to reflect and list out the things you are thankful for – it can do wonders for your mood!
3. Remember: You Can Choose Your Outcome
We humans are great at adapting and adopting. We will learn from the pandemic and we can come out stronger and healthier. Our health habits will improve. Surfaces will be sanitized frequently. People will wash their hands more. And hand sanitizer will be the new American Express card – we won’t leave home without it. These habits will improve our overall health and well-being.
What a great time to be alive! We are living in a significant period of mankind’s progression. We are learning to live smarter and safer, both for our own health and for generations to come.
Learn More with Clarity
Our advisors can help you better understand your relationship with money – and keep a positive attitude about the future. Click here to schedule a consultation with Clarity Wealth today.