You might think the economy is in shambles, but Dave Ramsey doesn’t. The personal finance expert is largely unruffled by the country’s current financial state.
In an episode of “The Ramsey Show,” he attempted to calm a young caller by noting that this isn’t the first time the stock market has been down. He explained there’s nothing to indicate the current turmoil is a crash.
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“The U.S. economy is not imploding and falling in,” he said. “Not even close.”
Ramsey said the stock market is having “a bit of a temper tantrum over tariffs.” He explained that this is due to their unpredictable nature, as no one knows what exactly will happen with them.
That’s not all the good news — he also thinks now is a time to build wealth. Keep reading for three tips on how to use the current downturn to your advantage.
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Invest in the Stock Market
Now is the time to expand your portfolio, according to Ramsey.
“I’m scratching around for some extra money to throw it in right now, because I think the stock market’s on sale,” Ramsey said. “I think it’s a great time to buy.”
If you’re skeptical about this, he said to look at the larger picture of the S&P 500’s five- and 10-year track record and you’ll realize ebbs and flows are normal. He said the current economic turmoil is nothing but a bump in the road.
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Don’t Touch Your Investments
If you’re worried about the stock market, you might be thinking about selling your investments. However, Ramsey Solutions warned against this in a blog post.
They said selling your investments and parking your money in something safer can cost you. They said investing is like a roller-coaster ride and those who “jump off” early are the ones who get hurt.
Work With a Financial Advisor
Managing your money can be a challenge in the best of times. Now that the stock market is in turmoil, it’s easy to let fear drive your decisions.
Working with an investment professional can help you avoid this, according to a recent Ramsey Solutions blog post. Having someone remind you to focus on the facts, instead of your feelings can allow you to avoid making expensive financial decisions you will likely regret.
When you have a financial advisor to consult, they can talk you out of making questionable money moves before it’s too late. Yes, you’ll need to pay a fee for their services, but it’s money well spent.
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Sources
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The Ramsey Show, “How Do I Build Wealth in this Economy?“
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Ramsey Solutions, “How to Prepare for a Recession.”
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Ramsey Solutions, “How to Avoid Costly Mistakes When the Market is Down.”
This article originally appeared on GOBankingRates.com: Dave Ramsey: How To Build Wealth While the Stock Market Is Having a ‘Temper Tantrum’
