Fluid Money Management: Surviving a Market Crash

How to survive the market crash

 

Surviving a market crash can be a tricky and stressful process.  It is challenging to navigate the ups and downs of the market: things don’t always go the way you planned them. Wondering how to do this? Don’t worry! Here are some tips to help you weather the barrage. Let’s dive in together.

 

Don’t panic

First, it’s easy to get caught up in the frenzy of a market crash, but it’s crucial to remain calm and not make any hasty decisions. Emotional decisions can be costly, so educate yourself on the risks and rewards associated with investing. Make sure you have a long term financial plan, and can manage your money first: our guide to savings may be useful.

Research before investing

Stay informed and up-to-date on market developments. Research the investment options available and understand the risks associated with them. You can avoid costly mistakes with market research before investing. It also gives you realistic expectations when it is time to cut your losses.

Diversify your investment portfolio

Don’t put all of your eggs in one basket. Diversifying your investments and having a balanced portfolio is a good idea. Did you know a diversified portfolio can protect you in a market crash? You should invest in bonds, real estate, and commodities; these assets don’t move in the same direction as the market. A high returns savings account can also provide you with passive income and is a safe way to earn while still accessing your money: try Fluid’s 4% APY.

Invest for the long-term

Focus on the long-term benefits of your investment. Remember, the market tends to fluctuate over time. Short-term market fluctuations are normal and, in most cases, temporary. Investing with a long-term perspective can help you weather any short-term market volatility. Think about investment for retirement, not about your next holiday.

Take advantage of low prices

Did you know market crashes are opportunities for long-term investors? Yes! During a market crash, investors can purchase stocks, crypto, and other investments at lower prices. You can take advantage of lower prices and come ahead in the long run. However, you should make a solid financial plan to do it: don’t invest more than you can afford to lose, particularly in higher risk assets like these.

Final thoughts

We are optimistic these tips can help you survive the market crash. Above all, stay informed, do your own research and make wise decisions for your financial situation.