Welcome to week 2 of August 2022.
When we talk about personal finance or wealth management; taking a break or choosing to take no action is something that is hardly spoken about.
Many astute investors have learnt how to manage their expectations and one of the ways of doing this is by learning to let “sleeping dogs lie”.
Kindly note that I am not advocating that we stop investing but about knowing when to let a bearish run phase out without making any knee-jerk reactions.
This is because we are currently in a period where many markets and investment classes are performing below expectations.
For many Nigerian investors, it has, unfortunately, been a story of defaults or delays. As difficult as this may be to pockets or even portfolios; it may be time to cut yourselves some slack.
No, I am not saying don’t pursue defaults or debtors, I am saying making a conscious decision not to fret will be a good call at this time.
This is simply because it is easy to blame ourselves or even feel guilty for defaults or not even meeting set goals (due to unpaid interests).
As such, feeling anxious is understandable and for this reason, I am advising that people avoid checking their dashboards or stock market performance for some time.
The advantages of this decision are numerous. For one, it reduces anxiety levels as well as makes decision-making less emotional.
Rather than monitoring non-performing investments, I will like to suggest that we focus more on the things within our control such as budgeting and savings.
Budgeting will ensure our spending remains within control whilst savings ensure we build up funds to be invested when we find opportunities to do so.
It is also advisable to do a review or current evaluation of where you are in monetary terms versus where you had expected to be.
This may help you shift timelines or goals altogether. There’s truly no harm in changing goals whilst keeping a long-term view.
The aim of wealth creation isn’t necessarily about money but about the advantages, it offers the investor.
Till we meet next week, I wish you a fruitful week ahead.