As a Financial Planner, Here’s How I’m Managing My Personal Finances Right Now

The markets have been anything but calm lately. With President Trump’s recent tariff announcements making headlines and sending markets into a tailspin, it’s understandable if you’re feeling uneasy. Every time market volatility shows up, it feels like this time might be different. And in some ways, it is—because the cause is always unique. Whether it’s tariffs, inflation, interest rates, war, or a global pandemic, no two market downturns look exactly the same.

But here’s the thing: the outcomes tend to follow a familiar pattern. Historically, markets have always recovered. In fact, they’ve not only rebounded but gone on to reach new highs. That doesn’t make living through volatility any easier, but it does provide important context.

As a financial planner, I’m not immune to the emotional pull of a red market day. I feel it too. But experience and planning help me respond with intention rather than panic.

If you’ve been wondering what to do with your money right now—or whether to do anything at all—here’s how I’m personally managing my finances amid today’s volatility.

#1: Focusing on What I Can Control

When the headlines get noisy and the markets are swinging wildly, the first thing I do is zoom in on what I can actually control. That’s often the best antidote to uncertainty—focusing on the pieces of your financial life that aren’t dictated by external forces.

For me, that means taking a closer look at my discretionary spending. Am I spending in ways that align with my values and long-term goals? Or am I mindlessly adding things to my cart as a way to cope with stress?

It’s not about deprivation—it’s about being intentional. Tightening up those everyday decisions not only keeps my finances in check, it gives me a much-needed sense of control when everything else feels unpredictable.

It also helps to remember that market volatility doesn’t instantly affect your budget. Unless you’re actively selling investments or relying on your portfolio for income, your day-to-day expenses—like groceries, gas, or your mortgage—likely haven’t changed just because the Dow dropped 700 points.

#2: Monitoring Cash Levels and Automating the Rest

One of the best things I’ve done for myself is build a cash management system that works without needing my constant input. I keep enough cash on hand for:

• Emergency savings (3–6 months of expenses)
• Upcoming tax payments
• Short-term goals like travel or large purchases

Once those are funded, I automatically invest everything else. This isn’t something I leave up to emotion or market timing. If I waited until things “felt right,” I might find reasons not to invest during times like these. Instead, my system is automated and disciplined.

Pro tip: Set your investment account contributions to auto-transfer weekly or monthly from your checking account. That way, you don’t have to wrestle with the decision when markets are rocky—you’ve already decided.

#3: Dollar Cost Averaging Into the Market

If you’ve heard the phrase “time in the market beats timing the market,” this is where it really matters.

I continue to dollar cost average into my taxable accounts, which simply means I invest a fixed dollar amount on a consistent schedule, regardless of what the market is doing. When the market is down, that same amount buys more shares. When it’s up, it buys fewer—but you’re still investing regularly.

According to a recent Vanguard study, this approach helps reduce the risk of mistiming the market and often results in a lower average cost per share over time. It’s a steady, boring, tried-and-true strategy—and during volatile times, boring is often best.

#4: Continuing to Invest in Long-Term Accounts Amid Market Volatility

Market dips don’t stop me from investing—they reinforce why I do it in the first place. That’s why I continue making regular contributions to my long-term accounts, including my 401(k), a Traditional IRA, and when eligible, a backdoor Roth IRA.

These accounts are designed for goals that are decades away, so short-term volatility doesn’t change the plan. In fact, pulling back during a downturn can do more harm than good.

Missing just a handful of the market’s best days can drastically impact long-term returns—research from JPMorgan finds that 7 of the 10 best days in the market occurred within just two weeks of the 10 worst days. If you’re sitting on the sidelines during a recovery, you’re likely missing out on a meaningful part of the upside.

#5: Creating More Opportunities for Future Tax-Free Income

One of my top priorities—especially during periods of market volatility—is building future income streams that won’t come with a tax bill. Bear markets can be an ideal time to do this through Roth conversions.

When account values are temporarily down, I can convert more shares from a traditional IRA to a Roth IRA for the same tax cost. Those converted assets then have the opportunity to rebound and grow tax-free, providing long-term tax advantages and added flexibility in retirement.

I’m also contributing to 529 plans for both myself and my spouse—not just for education expenses, but as a potential tool for future Roth conversions. Thanks to recent rule changes, unused 529 funds can now be rolled into a Roth IRA under certain conditions after 15 years, creating another pathway to tax-free retirement income.

In short, I’m using today’s downturn to plant financial seeds that could pay off—tax-free—well into the future.

#6: Reminding Myself of Past Market Wins

It’s easy to lose perspective during rough patches, but history reminds us that market growth is more common than decline. In fact, according to Hartford Funds, the stock market has spent 78% of the past 94 years in a bull market—meaning most of the time, it’s been climbing, not falling.

Personally, I’ve experienced plenty of “crises” over the years: the Financial Crisis in 2008, the COVID crash in 2020, and dozens of short-term panics in between. What’s kept me sane—and financially healthy—is staying invested in a diversified portfolio through it all.

I don’t try to time the market or chase hot stocks. I’m not a self-proclaimed stock picker. I focus on asset allocation, rebalancing when needed, and letting compound growth do its thing.

And I’ll admit: I’ve always looked back during a downturn and thought, “I wish I had invested more during the last one.” That alone is reason enough for me to stay the course now.

#7: Taking Advantage of Tax-Loss Harvesting Opportunities

Market volatility isn’t fun—but it can present valuable opportunities if you know where to look. One strategy I use during downturns is tax-loss harvesting, which involves selling investments that have declined in value to offset capital gains elsewhere in my portfolio. It’s a smart way to make the most of a loss and create potential tax savings now or in the future.

I’m always mindful of the wash sale rule, which prohibits buying back the same—or a substantially identical—security within 30 days of the sale. But once that window passes, I often repurchase the same investment at a lower cost basis. This resets my holding period and gives me a chance to benefit from future gains while keeping my overall investment strategy intact.

It’s a strategic move that turns temporary market pain into long-term tax advantages—one of the few silver linings in a down market.

Bottom Line: Market Volatility Is Normal. A Solid Plan Makes All the Difference.

If you’re feeling overwhelmed by the current market environment, you’re not alone. The headlines are loud—and they’re designed that way. Fear drives clicks, but it shouldn’t drive your financial decisions. A strong financial plan isn’t reactive; it’s proactive, intentional, and built to weather uncertainty.

What I’ve shared here isn’t flashy or groundbreaking. It won’t go viral on social media. But it works. These habits—automating, staying consistent, managing taxes, and focusing on long-term growth—compound over time, just like your investments.

As a financial planner, I’ve seen it over and over again: those who stay the course, block out the noise, and stick to their plan are the ones who come out ahead. They build wealth steadily, sleep better at night, and stay focused on what truly matters.

At Simplicity Wealth Management, we help busy tech professionals—especially those navigating equity compensation—build plans that are resilient in every market. If you’re unsure whether your current strategy can handle what’s next, let’s talk. Schedule your complimentary Simplicity Session today, and let’s build a plan that helps you thrive through uncertainty.

Don’t forget to download our free guide: “The Tech Equity Blueprint.”