Market Panic? Keep Your Tea Warm and Your Investments Steady
I wasn’t planning to become a part-time economist this week. And yet, here I am again — mug of tea in hand, scrolling past headlines that are all dramatic fonts and falling arrows. The FTSE’s wobbling, markets paniced, again. And even though I know the drill, even though I’ve got my little system in place, a small part of me still wants to do something.
It’s funny. I first got interested in markets back in 2008/09 — which, as far as timing goes, was like learning to swim during a flood. I was a student back then, half fascinated, half terrified, watching the news as everything dropped. I didn’t have a penny invested, but the panic still stuck to my ribs. I thought if I learned more, I’d feel calmer. Spoiler: it made me more anxious.
Now, 10+ years later, I’ve got investments. A system. A Slow Burn mindset. And I still sometimes have to remind myself: staying calm isn’t a passive act — it’s a choice. A practice.
This post is a little guide to help you find your feet when the market gets loud — especially if you’re on the Financial Independence path. Because let’s be honest: FI is about the long game. And the long game needs a steady hand.
Understanding the Nature of Market Wobbles
What’s Actually Happening During Volatility?
Volatility is just a fancy word for mood swings. The market gets jumpy because people do. Prices swing up and down as investors react to headlines, economic reports, wars, elections, or vibes.
It’s not a sign that the system is broken. It’s just… what markets do.
It’s Not Personal (Even When It Feels Like It Is)
When the numbers drop, it can feel like a judgment. Like you made a mistake. But here’s the truth: this isn’t about you. It’s the weather. Not your fault. Not your failure.
If the news sounds like a toddler tantrum — that’s because it sort of is. And the good news? I know my toddler’s tantrums. They don’t last long.
Using Savings as a Buffer (So You Don’t Have to Sell the House When the FTSE Coughs)
Why Cash is a Calm-Down Tool
If investing is a long-haul flight, your emergency fund is your oxygen mask. It’s the thing that stops a dip from turning into a crisis.
Having cash set aside means you don’t need to pull money from your investments when life throws a boiler breakdown your way. It means hiccups stay hiccups — not financial emergencies.
How I Think About My Buffer
I keep my emergency fund in a completely separate account — with a different provider. That way, I’m not seeing it every time I log in. I like knowing it’s there, quietly doing its job, while my investments do theirs.
That separation helps me stay calm. One pile for peace. One pile for growth. No weird crossover episodes.
Tips for Building a Cushion Without Going Full Hermit
- Set up a standing order, even if it’s small
- Pick a round number you’d like to keep (3–6 months of expenses is popular)
- Resist the urge to use your emergency fund for “sort of emergencies” like flash sales or bad moods
A good buffer means you don’t have to touch your investments. And not touching your investments is often the best move you can make.
Staying Steady When the Headlines Get Shouty
Create Space Before You React
When things get loud, give yourself a minute. Or a week.
Don’t open your investment app on days when the news is shouting. Go for a walk. Open a book. Bake something. The market will still be there tomorrow.
Do Less, Not More
Pound-cost averaging is my autopilot. I invest monthly, whether the market is booming or tanking. It keeps me from having to “feel ready” — I just do the thing.
Some of the best investors, according to a study, were dead. The next-best were people who forgot they had accounts.
Let that sink in.
Just because the market is freaking out doesn’t mean you need to.
Find a Mental Anchor
Warren Buffett said it best: “Be fearful when others are greedy, and greedy when others are fearful.”
I translate that into: oh look, things are on sale.
When the dip comes, I don’t panic — I just carry on. Maybe even get a little excited. But mostly? I ignore everything and keep investing.
Why Staying Calm Is a Superpower on the FI Path
Financial Independence isn’t a sprint. It’s a long, weird, sometimes boring hike. And on that hike, you’re going to hit some rain.
Volatility doesn’t mean you’ve failed. It doesn’t mean the path is wrong. It just means the weather’s a bit crap today.
The less you tinker, the more you gain. Compound interest rewards patience, not genius. And every time you choose not to panic, you reinforce that you’re in this for the long haul.
Minimalism also plays a quiet role here. Fewer reactions. Fewer decisions. Fewer check-ins. Just set it, automate it, and go outside.
And health? Let’s be real — constantly checking your portfolio does nothing good for your blood pressure.
Gentle Questions for the Road:
These days, I plod along. My systems are on autopilot. I contribute. I don’t obsess. That’s my calm.
If you’re trying to ride out the noise too, here are a few questions to reflect on:
- What would your investments look like if you didn’t check them for a month?
- What helps you trust the long view, even when the news doesn’t?
- Do you have an ‘emotional buffer’ as well as a financial one?
See you on the slow road. It’s quieter here.