Terrible News For People Who Love Financial Headlines
THE BIG THING I WANT YOU TO KNOW:
The financial world is complex, so it doesn’t make sense to say a drop or a rise is simply good or bad! It is entirely dependent upon your situation. And if you have a plan that’s tailored to you and the complexity of the market, well, you’re ready for the ups and downs.
There is no simple answer when talking about the market. Too many times, I hear people giving black and white answers, which are so easy and simple, but so untrue. Has your life been simple? Mine hasn’t, and I doubt that yours has. Life is complex!
When we don’t grapple with the complexity of the financial world, when we try to simplify it, we lose a lot.
Don’t Make Me Pull This Car Over! Listen Very Closely, “What’s bad for you may be good for someone else, and vice versa.”
Last week, oil prices dropped and we saw a dip in the market. Was it a good thing or a bad thing?
A lot of people define a dip in the market as a bad thing. But I say, it really depends on your situation.
Oil prices being low might be bad for your 401k today, but in a few weeks the price at the pump for gas will be lower. There are always two sides to the coin.
It’s bad for energy companies when oil prices drop because they receive lower profits on dropping prices, but it’s good for young people putting money into the market for the first time when it’s low because that means they bought it cheap.
In other words, financial news is rarely good or bad. It’s entirely dependent on your situation!
financial products are tools—they are good or bad depending on the job
Financial products are tools.
You don’t look at a hammer or a screwdriver and say: good or bad? You say, “What is the job? What is the context?”
The context of the situation is everything, and once you know it you can see which tool is the best fit.
You, yes you, have to move past simple definitions. It’s not a reality.
Maybe you think your not guilty of this and are more mature than the listeners we’re addressing. Here’s a quick test of some questions to find out if you like to label things holistically “good” or “bad.”
What is your reaction to the phrase “whole life-insurance?”
Do you find yourself clicking headlines on why the market is either up or down?
Do you have strict rules of what to ALWAYS and NEVER do in your finances?
This simplistic and rather novel set of questions is to say, you may often be someone who minimizes the usefulness of tools or labels the market and this financial approach has to be put away. The reason this financial lifestyle isn’t healthy is your situation is incredibly complex.
I’m sorry to give you the bad news, but financial headlines alone aren’t going to help you grip some complexities that are essential to your growth.
It’s Not Our Fault We Like To Label Things “Good” Or “Bad” It’s Our Instinct… That We Must Fight With A More Complex Truth
We like to put things in boxes, that’s just part of human nature. It makes us feel in control.
Our brain is constantly categorizing, sorting, and organizing countless inputs of data and information. We have to simplify things to survive.
BUT… beyond biology, you’ve got to get to a place where you have a plan that’s built for your situation, not the good or bad of the market, one that’s built to be flexible and stretch for whatever is going on in the world. Create something customized for YOU, so that you’re ready for the market going up or down.
When we’re not relying on the next news story to tell us whether we’re going to be okay, we can have peace with our financial plan, because it transcends these simplistic explanations of good or bad, and it’s built to handle the real world and the ups and downs that come with it.
you’ve got to get to a place where you have a plan that’s built for your situation, not the good or bad of the market…
When Is It Time For You To Add Complexity to Your Financial Outlook?
We’re not suggesting finances need to be confusing to benefit you, but rather that your plan and outlook on financial health has to be more mature than labeling life good, bad, or indifferent. Life changes and plans must adapt to encompass today’s complicated world. Right?
If you want a plan that is customized to your situation, that bends and changes with life’s curveballs. It’s time to begin that conversation and find out how to build a plan that you can feel confident in.
Sign up for a free consultation so we can help you figure out that plan, or ask our team any question so you’re not waiting around for what may be good or bad, but you’re at peace because you know the answers your seeking and your plan is built to handle the unexpected.
P.S. I think it was a GOOD thing you read this show summary. : )
What is something wildly complex that appears simple?