Dear Friend,
I read The Witch’s Heart by Genevieve Gornichec this weekend. The book is based on the Norse myth of Ragnarok or the end of worlds. It is a very good book (perfect for fans of Madeline Miller and myth-based fiction in general), but what I found particularly fascinating was the underlying theme of foresight. What happens when you can see the future? The protagonist - who has the ability to look into the future - thinks of her foresight to be a curse, not because the more powerful hunt her for it, but because it robs her of hope and agency. After all, what is a future, if it doesn’t hold hope? And what is a future if it has not been shaped by you? Not knowing what the future holds - is a gift.
But if the last couple of years has taught us anything, it’s that we overestimated our destiny shaping abilities, and that optimism in the face of a relentless pandemic is exhausting. Prolonged uncertainties can be debilitating - and prolonged money uncertainties, especially so.
Creating Financial Certainties
A confession: I do not do well with uncertainty. Have you read about the boom in astrology, tarot readings and AI-Powered birth chart apps the last two years because millennials are collectively struggling to deal with the uncertainty that life is throwing at them? Friend, I am that millennial. However, I have managed to create some semblance of certainties in my finances and I wanted to share them with you.
Get Insurance: I am probably a broken record at this point, but hey, people play the classics for good reason - they’re classics. Term Insurance and health insurance policies are non-negotiable given the times we live in because they guarantee an outcome - and the certainty of a safety blanket - when catastrophe hits. We’ve been through enough the last couple of years to know that health insurance isn’t something to consider but to be bought as soon as possible. Term Insurance provides another layer of certainty (if you’ve been considering term insurance, here’s a post on how you should calculate cover) for your family and other dependants. The act of buying insurance is deeply morbid - for it requires you to think about all the worst-case scenarios that are out there. But sometimes, it’s only when we dwell upon the awful do we realize what we need to do to be prepared.
Create Budgets: When things feel like they’re spiralling, I take refuge in spreadsheets to focus on what I can control. Budgeting is a great way to put yourself in the driver’s seat. If you’ve never tried budgeting, I’d urge you to give it a shot! Creating your personal budget (I have a free template you can use, too!) is very similar to journalling - it’s introspective, it’s calming (really!) and will reveal insights about your money habits that you may have never known, or even expected.
Avoid Risky/Uncomfortable Investments: All of us have different tolerance levels when it comes to risk and by now, a fair idea of investments that we’re comfortable with, investments that we’d like to get comfortable with and investments that are uncomfortable but hugely popular and FOMO-inducing. Every time I get nervous about money or I find myself in a situation I can’t predict, I sit out on investments I’m uncomfortable with. And by doing so, I instantly eliminate one more thing to be worried about when there’s a lot going on already. While the nature of investments I sit out on may not be the same as anyone else’s - I do believe the feeling of discomfort is universal. So when things get tough, the tough stay out of whatever makes their stomach churn.
Out of Control
This is the part where I get deeply philosophical and tell you that nothing is in anyone’s control, BUT! Instead of going freefalling into the tunnel of uncertainty, it might be more helpful to hang on to the few things that you can get a grip on until life as we know it makes a return.
And I really hope it does.
I hope you found this useful. If you think you know someone who might enjoy reading this newsletter, do forward this email to them.
Thank you for this piece.! Clear, concise and useful. Loved the Norse myth reference at the beginning (From a Norse myth fan)!.