The Rachel Cruze Show - Why I Never Panic When the Stock Market Dips (And You Shouldn’t Either!)

Starting point is 00:00:05 Okay, there's been a couple of times recently where the stock market has, like, gone down and everyone freaks out. So, today is your friendly reminder that investing is always a long-term play. So let's talk about what it looks like to remain consistent and calm as the stock market goes up and down. So make sure to like, subscribe, and share this video with a friend. All right, so let's talk about how to stay consistent when you're investing and not to freak out when the market dips. Number one, stay put and ride the wave. You guys, investing, it is like a roller coaster. It goes up and down.

Starting point is 00:00:39 And things are always going to be in motion. And there are going to be moments where you're like, oh, my gosh, what are we doing? Because if it starts to go down, it's scary. Like, that's the part of a roller coaster. That's the scariest, right? And you're going to feel the same way with the stock markets. But remember, investing in the stock market is a long-term strategy. There is a proven rate of return.

Starting point is 00:00:57 It's 11.8%. That has been the average since the stock market began. Okay? That means there are some years where it is way, less than that, there are some years where there's way more than that. But just know over time, the American economy still trends upward. Okay. Now, again, it's going to take some dips and turns every now and then, but you want to stay put. Now, to put this idea to the test and give you a concrete visual, I love using Ramsey's investment calculator because it accurately predicts

Starting point is 00:01:29 what your money is going to do in the stock market over the life of your career and your investing habits. But again, you have to remember just to stay put because this is for the long term. Now, if you are starting to retire and you're like, hey, golly, like, I'm going to have to pull money out soon. Talk to your investment professional, like figure it out. But for majority of people, just stay put. Number two, keep saving and investing separate. So if you are saving up for a big expense and it is in the short term meeting in five years or less, you just want to be saving. Now, if you put that money in the market, and it does take a downturn and it takes a little bit to go up, you've lost some money then because you have to pull that money out for the purchase that you're saving for.

Starting point is 00:02:09 So a down payment, for example, is a great one. Do not invest your down payment as you are saving, even if it's $10, $20, $30,000 for a down payment, don't put that in the market because you're probably going to have to use that money in less than five years. And if the market does take a nosedive when you need to pull it out to buy a home, then that's not fun. That's not good. So investing is five years or more.

Starting point is 00:02:31 so you have the ability to wait out some of those ups and downs. But when you're saving, just keep it separate. You know, your emergency fund, a down payment, if you're saving up for a vacation, all of that, you can put those in high-yield savings accounts. Those are great. It's going to passively, you know, get a little bit of interest, which is great. But the point of that savings is not for investing in long-term purposes. It's to save up for something you want. So remember that. Investing is five years or more saving is five years or less. Now, would you believe me that if I told you that when the stock market dips, I actually see it as a positive thing as someone who is investing. So I'll tell you more about that, but first, I want to tell you about Christian health

Starting point is 00:03:09 care ministries. When you lose your employer-sponsored health insurance, there may be a better option than Cobra. Consider Christian health care ministries. CHM is an affordable, biblically-based alternative to health insurance that could be a third of the price of Cobra. Yes, CHM programs start as low as $98 a month. And CHM has helped 100,000. of thousands of families take care of over $11 billion in medical bills since 1981. CHM members are also supported spiritually with prayer when they have a medical event. Now, try getting that with COBRA because you won't. So whether you're going through a job loss, life change, or just want to consider options

Starting point is 00:03:49 to save on health care costs, check out CHM. Learn more at CHministries.org slash budget. That's CHministries.org slash budget. All right, number three is remember the upside. So if you are investing and you're doing it consistently, when the market dips, it's actually a chance for you to take advantage of it because that means you're going to be able with that same amount of money, buy more stocks, buy more into the market than you would when it's really high. And so ask your financial advisor, talk to them about this because, again, when it dips, the market's on sale. Like you get to buy way more with the same

Starting point is 00:04:28 amount of money. And then when the stock market recovers, which it always has, going back up, then you get all the gains of it going back up, where if you took your money out at the bottom and then you try to put your money back in when it's doing well, you're not going to get that growth. So you're going to mess out on so much money. Now, if you are looking for a reliable, knowledgeable financial pro, I'll leave a link to get you connected with a smart investor pro in your area. Now, if I've convinced you, then not to panic about investing and take out all of your money, but maybe you're still stressed about the housing market. Listen, I hear you, and I've got the perfect solution. Make sure to check out my episode on why the housing market might feel impossible

Starting point is 00:05:07 right now. I will leave a link for all of you listening on podcasts, but make sure to check out that video right here. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - Why I Never Panic When the Stock Market Dips (And You Shouldn’t Either!)

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