Business & Investment

I lost everything during the 2008 crash. I was financially sluggish and homeless. Why am I still worried?

Dear Quentin,

I am worried about my financial future. I lost everything in the 2008 stock market crash, became financially and homeless, and hadn’t had a car for nearly seven years. I have spent the last 10 years recovering.

I am 58 years old and have $ 250,000 in a high yield savings account, $ 150,000 in stocks and RothIRA. I also have $ 35,000 in emergency funding. I have a $ 1,200 mortgage per month, but my home is currently worth about $ 350,000.

My monthly income is $ 5,000 and I earn between $ 75,000 and $ 150,000 a year. I owe $ 2,000 for a credit debit card and $ 25,000 for two vehicle loans. No more than $ 1 million as planned. Why am I still worried — and should I do so?

Still reel

You can email The Moneyist with financial and ethical questions related to the coronavirus at and follow Quentin Fottrell. twitter.

Dear reel,

Without trauma from past experience, you are not human.

You have spent the last 14 years recovering mentally and financially. You have shown that the world and yourself have what it takes to keep moving forward. You have come a long way in that era. I want to say that it’s okay to enjoy your current life.

If you stop worrying and no longer suffer, it doesn’t mean that the same thing will happen again. You have laid a deep and solid foundation. You have the finances that millions of Americans would want, and you have created a financial life that you can be proud of.

It seems that a third party (financial adviser or financial therapist) may be needed to show on paper that you can live within your means for years to come. You have done what you need to do to regain control of your life, and now let go of that fear.

As a colleague Leslie Albrecht wrote: “Although it has been around in many forms since the 1990s, financial therapists are now more standardized and ready to become more prevalent. So far, professions have been loosely defined and everyone has their own. I could call him a financial therapist. ”

“This area includes a variety of professionals, from psychotherapists to marriage counselors, social workers and certified financial planners, all of which help clients understand the emotional basis of their money behavior. That’s what I’m aiming for, “she writes.

Trauma and uncertainty

The last 18 months have been traumatic and have hit people’s mental health. Some have lost their jobs, fought COVID-19 and overcame many uncertainties. Markets made up of people like you and me hate uncertainty. But they / we got over it.

At the beginning of the pandemic, I made the decision that I wouldn’t worry about being out of my control. I can make careful decisions about my health and situation, but if I’m trying to control what happens, I’m playing God. And I’m not a god.

We will continue to save money, diversify our investments and strive to repay credit card debt and mortgages. Doing so will make you feel better. The process of setting valuable economic goals provides something certain to focus on, rather than a blank canvas about what will happen in the future.

It’s also a good idea to have a mantra when you wake up in the morning and go to bed at night. “Universe, thank you for putting the roof on my head, putting money in the bank and helping me restore the safety of my life. I have everything I need today.” Call it the gratitude, or the ability to express gratitude.

But it’s not a bad thing to teach yourself to focus on what you have, not what you don’t have, and what happened after 2008, rather than those struggles right after the crash. Your letter expressing those fears is a good first step because you are not alone.

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check out Moneyist Private Facebook The group seeks answers to the most difficult money problems in life. Readers write to me with all sorts of dilemmas. Please post a question or tell us what you want to know. Or consider the latest Moneyist column.

Moneyist regrets not being able to answer the questions individually.

Other works by Quentin Fottrell:

•• “I don’t trust my sister”: How can I give money to my mother’s inaccessible niece?
•• We are married and have a baby on the way.My wife offered to repay my $ 10,000 student loan and $ 7,500 mortgage
•• I have three children. I resigned my home as the most responsible son.Now he blocked my phone
•• My brother-in-law confused his house and died. His landlord wants me to repaint and replace the carpet. What should we do?

I lost everything during the 2008 crash. I was financially sluggish and homeless. Why am I still worried? I lost everything during the 2008 crash. I was financially sluggish and homeless. Why am I still worried?

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