Other Down Markets


This week has seen a massive downturn in the cryptocurrency market. Several coins/tokens/projects have lost significant value even over the last couple of days. For some, who perhaps had put their economic future's hopes in these may be feeling lost and a bit hopeless. Allow me to offer a bit of hope and a possible path forward.


While it may look on paper that you have lost perhaps a significant chunk of your net worth, if you are still employed and earning a steady income, all hope is not lost. Now may be the time to shift your focus to other things you can do to build strong money habits in your personal life. This would be in stark contrast to putting money in new technology hoping it is the next big thing.


If you are in such a position, I encourage you to take time this weekend to sit and write down your expected income for the month of May. This would include a spouse's income as well. Whatever money you have coming into your household from work you perform should be accounted for here.


Next, write out these four essential categories of expenses:

  1. Food

  2. Shelter

  3. Utilities

  4. Transportation

Once those are written down, put a limit on how much you will spend on each of those for the rest of May. The shelter category usually won't change much (rent/mortgage payments), but there can be a lot of fluctuation with food and transportation costs.


Now, look at your starting budget and see if your necessities exhaust your entire income. If it doesn't, then that means you have room to spare to thrive instead of just surviving. If your income is completely consumed by these expenses, then hope is still not lost. You should still be able to put food on the table, keep the lights on, and avoid eviction or foreclosure. This still gives you time to process and consider other options for moving forward.


If nothing else, I hope this exercise helps you look at your situation differently. Instead of focusing on the terrible news cycle, you can look at what you do have and start taking more responsibility for your future. I trust you will find more success when you intentionally work toward your better future instead of hoping to catch a ride to that destination on the next hype train.