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Groundhog Day: Forget Forecasts & Face Your Financial Fears

business man with piggy bank on head and hands onIn “Groundhog Day: Financial Planning Can End a Cycle of Financial Missteps,” we discussed how the main character in the movie Groundhog Day had to relive the same day repeatedly until he learned a valuable lesson in how to treat other people.

Another lesson we can learn from the actual Groundhog Day on the calendar is not to be so concerned about predictions that you ignore the opportunity to take decisive action.

Each year, people wait to see what the groundhog, a small rodent, will do because tradition says this will provide insight into the weather for the weeks that follow. Financial forecasts are not nearly as seemingly random as Groundhog Day, but just as you cannot be held prisoner by an animals shadow, you also cannot rely so much on financial forecasting that you don’t make any moves. Like the main character in the movie Groundhog Day, you may get stuck in a repetitive cycle.

In “How I Deal With My Financial Fears,” Trent Hamm of The Simple Dollar is honest about how writing about finances does not make anyone exempt from financial fears. One of his suggestions is that you write down what makes you nervous. There is research that shows writing things out by hand can help you to focus. According to Hamm, you might find that your fears are not based on what you think when you start writing.

Hamm also suggests that you talk about your financial fears with another person. While he doesn’t say you can’t talk with friends of family, he does suggest getting expert advice:

“This might mean contacting a financial advisor. If it does, seek out a fee-only financial advisor, as they won’t be engaged in selling you products and are most interested in just providing information to you.”

With the help of a Fee-Only financial planner, you can develop a strategy to sustain yourself long-term so you can breathe easier no matter what the forecasts say.