Navigating Uncertainty in Your Finances
“Trust in the LORD with all your heart, on your own intelligence do not rely; In all your ways be mindful of him, and he will make straight your paths” (Proverbs 3:5-6).
A few months ago, I wrote an article about remaining hopeful regardless of whether you were experiencing great blessings or great trials. As this year progresses, there are many uncertainties in the political, economic, and financial world. The most recent major example is the executive order dated April 8 implementing tariffs, followed by suspending them on April 10 for 90 days, to allow for negotiations. While tariffs are a major concern for many, there continues to be other uncertainties that also make navigating business and home life difficult.
Nobody Likes Uncertainty
Recently, a client asked me if we had ever been in a situation like this where someone would make a comment, and the markets would react dramatically in one direction or another. His direct quote was: “Is it wild?!” I agree that too much rides on what President Donald Trump says or does not say. Right now, financial markets are responding to his comments almost as much as his actual actions. It is certainly a wild ride for the stock market. But honestly, we cannot control the reactions or the comments of others. All we can do is control our reactions and responses.
While the specific situation described by my client is unique (at least from what I know), it can be understood within a larger perspective that is actually quite common: the financial markets do not like uncertainty. Looking back, the markets were a mess when Covid-19 hit, they do not like war or other conflict, and they struggle when the value of companies within a specific market is speculative and not substantiated.
Keeping the End Goal in Mind
If you think about it, no one really likes uncertainty. We want to have a plan and an expected outcome. Yet, as Catholics, we are asked to have faith and journey into the unknown. As Catholics, we believe — we know — Christ rose from the dead and opened heaven for us. We know our home is not this world: that we are pilgrims on a journey to our ultimate home in heaven, eternally united to God. Our plan should be to do whatever it takes to get to heaven; therefore, the expected outcome is heaven. We know we have a merciful God who will help us accomplish this if we let Him. This gives us certainty amid the uncertainty, a plan amid the unknown. Peace within trial.
In the same way, we must weather the uncertainty within our business and personal lives with our eyes fixed on our end goals. If you are a business owner concerned about the impact of tariffs, I encourage you to review your goals prior to tariffs becoming an issue. Then review your plans. Taking a step back, what, if anything, needs to change? Remember, most tariffs are suspended right now. How will they directly affect your business? Do you import from other countries? Are there U.S.-based alternatives? Are they more expensive? Why? Could it be better for your company to move to these alternatives anyway? Take the time to navigate these questions. Pray about them and review your goals and plans, but also trust in the process. Remember, the tariffs are still uncertain. Being ready for them is good, but worrying too much before you know how they will shake out will just cause unnecessary stress.
God Is in Control
If you are concerned about the value of your investments, retirement accounts, and college funds for your children, I understand. The most prudent thing to do is to weather the storm and stick to your plan. Trying to time the market or move everything to cash is a risky game. If you decide to sell the positions, how will you know when to buy them back? On April 9, the S&P 500 had its best day since 2008, rising 9.5 percent. This was preceded by it losing 12 percent since President Trump announced the tariffs. If you decided to cut your losses before April 9, you would not have participated in the gains of that day. It is virtually impossible to know how the market will perform in the short term, especially in periods of uncertainty. As this uncertainty continues to work itself out, the best course of action is to stick with your plan. If you do not have a plan, it could be a good time to talk with a professional to see what is best for you and your specific financial situation.
If you are concerned about rising costs due to tariffs, you are not alone, but remember, we do not know how everything will shake out. It is not a bad idea to be a bit more frugal and ensure your emergency fund is in good shape. Besides that, adhering to your budget and long-term financial plan is wise. There will always be bumps in the road. A good financial plan takes these into consideration.
Maybe you are simply concerned about the uncertainty of the future. Many things seem to be changing and evolving. Trying to see where it will all land is impossible. Have faith. Take comfort knowing that God is in control of everything, loves you individually, and loves all His creation. We often have no idea where He is leading us, and the unknown can be scary, but He gives us the grace to handle the situations He puts us in. He is at our side, navigating all things. Surrender to Him. Trust in His love and mercy. Allow this time of uncertainty to draw you closer to Him and expand your relationship with Him. He will not abandon you.
Erica Mathews is a CERTIFIED FINANCIAL PLANNER™ Professional with Financial Counseling Associates, a family-owned financial planning and investment management firm. She helps relieve financial stress with organization, automation, and a plan, helping others manage their finances so they can live as God is calling them to. She lives in Colorado with her husband and four kids; they love CrossFit, rock climbing, gardening, and exploring nature. Erica’s email is erica@fca-inc.com.