Do You Have PMS?

Guest post:  Helen Georgaklis, Financial Planner

CRASH! That’s what the stock market has done for the past few months.  This emotional beast has euphoric highs and gargantuan downturns without a moment’s notice. Sound familiar; it should! The market is often compared to women when we’re PMSing….

It’s hot, it’s cold, it’s up, and it’s down…..

So what are you going to do about it? How do you avoid the emotional roller coaster ride and sail effortlessly through the years without PMSing at every turn?

Is it possible to take our mind off the pain we are experiencing in times like these? How do we remain steadfast and focused so we avoid emotional meltdown during market corrections?

There is no magic pill; it isn’t easy to do, but it is possible. You cannot time the market, nor can you predict any future returns based on past history.

PMS = Planned Monthly Savings

There are three simple steps to avoid your next PMS attack. So many have been lured by the thrill ride and it has cost them many hundreds of thousands of dollars. They were enticed by the Carney barker at the entrance to the fair by tales of riches and power with the potential to make their dreams come true.  Visions danced in their minds of fortune and early retirement. However, had they looked a little deeper, taken it slow, done their homework and had a step-by-step attitude, the crash would’ve been more padded and far less painful!

How can you start off on the right foot and stay on the right path?

You begin by settling on an amount that you can afford every month to put aside. A good rule of thumb is your yearly savings should represent at least 5% of your earnings, up to 12% if you’re really good!

As an example, if you earn $45,000 a year, a 5% yearly savings would result in $47.00 a week savings. Your approximate net monthly income would be $2700.00 per month or $675.00 a week. When you’re take home pay is $675.00 a week, don’t tell me you can’t afford to save a mere $50.00; or maybe you want to deny yourself the chance to actually save money.

If we choose our investment/savings program the way we choose our relationships, are we setting ourselves up for a PMS attack? Some plans may be too risky; fly by night. While others may be way too conservative and offer little growth…bottom line, PMS!

If you feel that you can’t do it on your own, then by all means sit down with an advisor who can guide and direct you. You don’t have to opt for the amount they’re comfortable with for you; you have to pick an amount that YOU know YOU can do!

Imagine this; if you had put just $25.00 away a month in a savings plan starting at 21 yrs old, by the time you’re 60, you’re a millionaire. Obviously, that is a slow wealth accumulation; but that’s the whole point! You don’t become rich over night. Would you fly off to Vegas and marry the first guy that asks you? (If you answer yes, I have a good therapist to recommend). Again, bottom-line PMS!

A financial advisor, who does true financial planning, can put together a sort of “map”. Your map is created just for you and it will help you keep a focus and on track as much as possible even allowing the flexibility to fall off without falling out!

You can actually put together a plan for the simple reason that it offers you a snapshot of what the future “may” look like if you choose to follow it.

At the end of the day, it’s your choice! You decide, are you worth the riches, or are you stickin’ to rags?

You don’t have to be a millionaire, and no one should sell you on that concept, but for your sake, at least be sold on the concept that you should reach for the sky even if you end up only reaching a sky scraper! At least you will have lived knowing you tried instead of living your life wondering what could’ve been.

Ask professionals; get opinions, get second and third opinions. We’re really strange creatures; we go to dentists for our teeth, go to gynecologists for check ups, go to the mechanic to fix our car, yet when it comes to our money, either we don’t do anything about it, or we let someone other than a professional take care of it!

It’s important that you do your homework! If you don’t, nobody will and you will fail! As a baby boomer woman in business, you can’t afford to fail; it costs TOO MUCH! It’ll cost you a lot less in every aspect if you do your homework rather than PMSing at every market downturn.

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