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Its understandable to react to the upheaval with fear.
After all, many people lost real money.
Sethi argued for investors not to sell their stocks.
Ive been seeing it all over Reddit and Twitter.
People whove been screaming buy and hold for years suddenly panic and sell everything after a few bad days.
It might feel logical in the moment, but its almost always a devastating long-term decision, Sethi said.
Selling stocks may make Americans feel better, but it can make the pain worse.
If youre investing for the long term and you should be, then you dont need to panic.
Im not selling a thing.
Hes Growing His Emergency Fund
Having emergency savings is a hallmark of personal finance.
Most experts recommend having at least three months of living expenses saved, if not six.
Sethi recommended for Americans to now aim for a 12-month emergency fund.
The people who win in a downturn are the ones who prepared before things got bad.
If your income suddenly disappears, whats your plan?
Start cutting discretionary spending now, before the world forces you to, Sethi explained.
Sethi further argued this point in aposton X.
Review yourstreaming subscriptions, services you could live without or reduce dining out.
Take those savings and put them in ahigh-yield savings accountto boost savings.
Understanding That Anger Is OK
Sethi repeatedly states that money is political.
Actions by Trump or any politician are outside most Americans control.
Sethi said frustration is OK.
But he says that it requires fast action on the part of Americans.
Put yourself in a safe position.
Better to overcorrect than undercorrect, Sethi said onX.
Thestock markethas been tumultuous recently.
Dont let emotion guide you to poor decisions that can cost you.
Instead, let it guide you to preparing your finances for more headwinds.
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