I came across this quote the other day and thought it was absolutely brilliant!
If you knew everything was really all right, and that it always has a happy ending, then you would not feel trepidatious about your future. Everything is really so very all right! If you could believe and trust that, then, immediately everything would automatically and instantly become all right. –Abraham-Hicks
Believe it or not, at first I had no idea who Abraham-Hicks are. I had to check with Mrs. T, who has been reading quite a number of book on the Law of Attraction. She then explained to me that Abraham-Hicks is not a person but rather Abraham is an entity and Hicks are two people (Jerry and Esther) communicating with the Abraham.
Anyway, I thought this quote is very fitting given the recent stock market volatility. It seems that almost every other day there’s a “big” market correction because someone said something or something happened. Some people are worried that there will be major corrections and we will soon see a major bear market.
The thing is, the stock market goes through bull and bear cycles. Sometimes the market goes up, sometimes the market goes down. But if you look at the long-term stock market performance, there’s an overall upward trend. If you had invest money 20, 30, 40, 50, or 60 years ago, generally speaking, you should see a positive return.
Take the Dow Jones in the last 10 years… you probably felt bleak, terrified, and hopeless when you went through one of these red dots…
But if we could step back and look at the big picture, hopefully it should be easy to realize that the overall picture is highly favourable to those of us that have time as our ally and are diversifying through time.
Let’s not forget that the Dow Jones average has more than doubled in less than 10 year’s time.
Here’s another interesting chart to show the positive trajectory…and the terrible times you would have gone through the last 40 or so years.
So if you know that in the future everything is really very all right and you can believe and trust that, then there is no need to feel anxious and stressed out right at this moment.
Why create the extra stress and fuzz when everything will be OK in the end? Stop wasting the unnecessary energy, stress yourself out, and make yourself sick.
Be positive and remember to be greedy when others are fearful, and be fearful when others are greedy.
A few readers have asked me what we plan to do when there’s a major stock market correction.
We don’t plan to change anything with our investment strategy. We plan to continue saving and continue buying dividend paying stocks and index ETFs. When there’s a major stock market correction, we plan to save even more money so we can buy more stocks at a discounted price. When we are in the accumulation phase, we want the market to stay cool so we can accumulate assets at discounted prices. Facing a bull market makes it harder to accumulate assets at reasonable prices.
We all need to remember that the financial independence journey is a marathon, not a sprint. We will have our own personal struggles on our own financial independence journey. Unexpected expenses may come up and result in the need to spend a lot of money. We may get discouraged and disheartened by these unexpected expenses because that means lower savings rate and therefore less money to invest in passive income generating streams.
But if you step back and look at the big picture, feel good that you are making great progress and that you are doing better financially right now than you were a year ago.
You will reach financial independence one day, it is just a matter of time. Does it really matter if you reach financial independence 1 year from now, 5 years from now, 10 years from now, or 25 years from now?
Instead of rushing through the financial independence journey, learn to slow down and take a few breathers. It is totally OK to prolong your FI journey. Nobody is judging you.
Personal finance and reaching financial independence is about taking the small steps each day and allowing these small steps to add up in the long run to create a giant financial impact. Sometimes you might be taking a small step forward; sometimes you might be taking a small step backward. On those days that you are taking a small step backward, it is important to remind yourself to look at the big picture and remind yourself that overall you are still making a positive progress.
Look at the big picture, believe in yourself, and trust that everything will be all right in the future.
If you are just starting out your financial independence journey, welcome. It’s a long journey, connect with other like-minded people to help you along the way.
If you are already on your financial independence journey, like us, keep at it. You will get there in the not-so-distance future. Connect with people in the personal finance/FIRE community and see if you can learn something from each other.
If you are already financially independent. Congratulations. Play forward to the FIRE community. Share your knowledge, help out those in the FI community, and spread the word.