Navigating Life’s Challenges With Sagely Advice

The story is told that King Solomon, known for his unmatched wisdom, tasked his advisors with what he was certain was an impossible feat. His challenge was to find something that could make a happy man sad and a sad man happy. After months of searching, Benaiah Ben Yehoyada presented him with a simple gold ring with the inscription “Gam zeh ya’avor, this too shall pass.” When Solomon saw the inscription, he concurred—all his wisdom, wealth, and power were fleeting, destined to pass with time.

This story offers a timeless lesson: Joy and sorrow are temporary, and challenges, no matter how daunting, will eventually pass. My mother often retells how my grandfather always said, “Don’t cry too much when things are bad and don’t celebrate too much when things are good.” I am assuming he got this perspective from the wisdom of King Solomon.

Today, the economic landscape is filled with uncertainty. This wisdom is particularly relevant as we face the possibility of an upcoming recession, with heightened risks such as rising unemployment, persistently high home prices, and lingering inflation. These conditions can create a sense of fear and anxiety about the future. It’s natural to feel overwhelmed by the potential for financial hardship.

One of the most important lessons to remember, however, is that markets are cyclical. Economic growth and contraction are natural phases that have occurred throughout history. Just as periods of prosperity come to an end, so too do periods of recession.

Understanding this cyclical nature can provide a sense of perspective. It reminds us that while we may face tough times, these are just one part of a broader economic cycle. Eventually, the economy will recover, and conditions will improve.

Winston Churchill once said, “If you’re going through hell, keep going.” This advice is especially relevant during challenging economic times. When faced with financial hardships, staying the course and avoiding making rash decisions driven by fear is essential.

Focus on Long-Term Goals: Despite the current economic challenges, it’s important to keep your long-term financial goals in mind. Whether you’re saving for retirement, buying a home or investing in your future, stay committed to your objectives. You may need to adjust your plans but don’t abandon them altogether.

Tighten Your Budget: In uncertain times, it’s wise to cut back on non-essential spending. Review your budget and identify areas where you can reduce expenses. Redirect those savings toward building an emergency fund or paying down debt, which can provide a financial cushion during tough times.

Continue Investing: Market downturns can be intimidating, but they also present opportunities for long-term investors. If possible, continue to invest, taking advantage of lower prices to buy quality assets at a discount. Historically, markets have always rebounded over time, rewarding those who stay the course.

Seek Professional Advice: Navigating a recession can be complex. Consider seeking advice from financial professionals who can help you make informed decisions based on your specific situation.

Life challenges, no matter how overwhelming, are temporary. Life is forever changing, and the difficulties we face today are just one phase in a broader journey. As we face the possibility of an upcoming recession, it’s essential to remember the wisdom of King Solomon’s ring: “This too shall pass.” By staying focused on your long-term goals, tightening your budget, continuing to invest wisely and seeking professional advice, you can navigate these challenging times and emerge stronger on the other side.

Would You Rather: If the return was the same, would you rather invest in real estate or stocks? Please email or message me to let me know your choice! Please let me know if you have a good “Would you rather” question, and we will highlight your submission.

Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.

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