04/12/2025
5 Things We Can Do NOW to Take Better Control of Our Finances
"Life is like a box of chocolates—we never know what we’re going to get."
With unpredictable financial markets, shifting political landscapes, mixed economic signals, and volatile corporate earnings, it often feels like we’re at the mercy of chance. But here’s the good news: we can take control of our financial future, even in uncertain times like these. Let’s explore 5 actionable steps—rooted in timeless financial principles—to help us navigate the unknown and build a more resilient strategy, starting today.
1. Pay Ourselves First--Let’s Harness the Power of Consistency
One of the simplest yet most powerful lessons in finance is to "pay ourselves first." We can automate our savings or investments—whether into a retirement account, brokerage, or high-yield savings—so a portion of our income is always working for our future. This habit ensures we’re building wealth even when markets feel like a gamble.
Action step: Let’s set up an automatic transfer today to allocate at least 10% of our income to savings or investments. Make those kids open a ROTH IRA if they have W-2 income.
2. Let Our Money Make Money--We Can Embrace Compound Growth
Ben Franklin once said, "Money makes money. And the money that money makes, makes money." The magic of compound interest is a cornerstone for us as investors. With interest rates still elevated in 2025, now’s a great time for us to shop for high-yield savings accounts or revisit our portfolio’s growth potential along with dividends, interest, and options premiums. Let time do the heavy lifting.
Action step: We should check our accounts this week and ensure our earnings are being reinvested to maximize compounding. The "RULE OF 72" is powerful to teach the kids.
3. Let’s Get Comfortable with Managed Risk
Volatility is part of investing, just like it’s part of life’s ups and downs. A dip in our portfolio can feel like a bitter chocolate, but it’s also a chance for us to learn. We can review our investments and ensure they align with our risk tolerance. If we’re overexposed, let’s consider rebalancing—maybe even buying into quality assets during a downturn. Understanding and managing risk can turn uncertainty into opportunity.
Action step: Let’s look at our portfolio’s performance over ups and downs (times of feeling euphoric and despondent) to identify areas suitable to adjust for better reward-to-risk management. Younger investors, and with life expectancy heading up and up that means more and more of us have really long time horizons, should embrace markets that offer lower prices.
4. Plan Ahead--Focus on What We Can Better Control
It’s easy to seek instant gratification, but we know money is about planning for both today and tomorrow. We can’t control market swings, but we can control our strategy. Let’s create a financial plan that balances short-term needs (like an emergency fund) with long-term goals (like retirement). We can also minimize costs by opting for fees that makes sense (worth it or not), using tax strategies like tax-loss harvesting, etc.
Action step: This weekend, let’s draft a simple budget that allocates funds for both immediate needs and a future goal—like a dream vacation or early retirement. Do you know what you are paying or the menu limits in that 401K, 529, brokerage, and advisory account?
5. Perhaps the True #1--Let’s Invest in Our Financial Mindset
Sometimes the best investment we can make is in our own perspective. Morgan Housel’s The Psychology of Money is a must-read for us to understand how behavior drives financial success more than market predictions ever will. Housel unpacks timeless lessons—like the power of patience and the pitfalls of emotional decisions—that can help us stay grounded no matter what the markets throw at us.
Action step: Let’s order the book today (or download the audiobook) and commit to reading one chapter a week. Contact me for other easy-to-digest resources. Our three boys have read and reread Morgan's books and embraced all of the above.
In times of uncertainty, the investors who thrive are the ones who take proactive steps together. These principles can help us navigate today’s financial "box of chocolates." Which step will we start with? Drop a comment below—I’d love to hear your thoughts! And if you found this helpful, please share it and/or add to it!
Michael Hakerem, CFA has over 32 years of experience navigating financial markets on behalf of private clients and their fiduciary advisors. He is cofounder and chief investment officer of Glenwood Financial Partners. Feel free to reach out via [email protected]
