In a 24-hour news cycle with no shortage of ups and downs, it’s natural for your reactions to affect your everyday life, including how you manage your finances.
The stock market isn’t immune either.
On February 19, the S&P 500, a leading market indicator, soared to an all-time high, only to slip into full “sell! sell! sell!” mode, culminating in the largest percentage single-day drop of 2025 just 19 days later. That same day, the Dow Jones Industrial Average was down nearly 900 points, and the Nasdaq Composite posted its largest one-day decline since September 2022. The market bounced back the second week of March to offset some of those steep losses, only to experience another significant drop on March 18.
This volatility has consumers and investors wondering what to do with their money. Move it from account to account? Invest differently—or pause investing altogether and just save? Do nothing and hope for the best?
Fortunately, history is on your side as an investor. On average since 1980, the S&P 500 has experienced multiple significant drops about twice a year, only to post positive returns overall for the year 34 out of 45 times.
So, despite all the outside noise, it all amounts to this: If you were content with your financial plan in 2024, there’s no need to reinvent the wheel in 2025. Sticking to your long-term financial plan will help you navigate any short-term unpredictability.
Achieving financial wellness is a lifelong, disciplined journey. Here are a few of the steps that can keep your plan on track:
- Track your income and spending … then create a budget. Once you determine how much money is coming and going, prioritize your savings by “paying yourself first.”
- Pay down your debt. Debilitating debt can really put the brakes on your road to financial health.
- Practice mindful spending. Weigh your wants vs. your needs to prevent mindless spending.
- Invest in your retirement. Set a target amount that will result in a comfortable retirement and work toward it.
- Review and update your plan. Tweak the plan based on your situation, not what you read or hear in the news.
Politics of the moment may temporarily disrupt your financial progress, but such shifts should only reinforce your commitment to your long-term strategy.
“What happens today is not a great predictor of what will happen tomorrow,” said Sandy Wagner, SELCO’s Central Oregon Regional Manager. “A logical, long-term financial plan is always a wise choice, no matter what the news brings.”
When it comes to the economy and politics, change is inevitable. What doesn’t need to change is your approach to financial wellness.
