Last Friday I logged into my employer’s human resources website to take a quick peek at my 401k balance. I was just curious how much money I had in there. I made a mental note of the balance, logged out, and went about my day. Then this week happened and the economy and stock market decided to take a nose dive. For the heck of it, I decided to log into the website again and check my balance. It had gone down over $2,000 (which is a pretty nice percentage of the money that I have in it). Whatever.
Why am I not concerned? First of all, I’ve got many years until I am going to retire. I’m not going to touch that money for at least 30 years, so why get all worked up about it now? Secondly, the stock market is going to go up and down- it’s just how it goes. If I was one of those people who panicked and sold all my stocks I’d be losing a lot more than $2,000. I’d lose the opportunity to make that money back.
When the stock market does crazy things like it has over the past few weeks, people start freaking out and doing crazy things with their money. They think they should sell before they lose even more money. Look at it this way: now is the time to buy! Stocks are on sale right now, and if you get a good deal, you have an opportunity to make a lot more money over time.
The other day I had a client come into my office that wanted to place a $75,000 wire transfer. As part of our bank’s policy, I asked him what the transfer was for. He informed me that he was buying gold. I couldn’t believe he was going to buy $75,000 worth of gold, but who am I to tell him not to?
I’m glad that I realized that the money I “lost” isn’t something I should worry about. There’s no way to get it back, and all I can do is move forward and keep being frugal and saving money. What else can I do?
Are you concerned about the economy/stock market? Do you worry about your money?