The worst thing someone can say in a bad situation is “don’t panic”. It increases the stress and tension in a situation and causes you to think of the worst-case scenarios that, in your mind, are now inevitable. The likelihood of this happening is small, but that doesn’t stop you from feeling like a cartoon character trying to survive in quicksand. Rather than flailing, both physically and mentally, here are our go-to tips on maintaining a level head during an economic downturn.

• Take a Deep Breath…Maybe a Latte, and go on with the Day

For some, this might be easier said than done. However, it’s important to not make any knee-jerk decisions. You and your financial team should have planned for some of these situations. If it was a high-risk, high-reward investment, you know there could be a risk anyway. For your safer, more stable investments, you knew that it was part of a long-term goal. Talk it over with your financial planner before pulling the plug or making any rash decisions.

• Don’t put all your (nest) eggs in one basket. Diversify!!!

Rather than wait until the last minute to plan for your future and any obstacles that pop up, plan while the economic market is doing well. And we always encourage our clients to diversify their investments. Traditional IRAs and 401Ks are great, but you probably want to invest in the stock market and other ways. Real estate is a popular investment opportunity, but there are other non-traditional ways to invest, too, including art, wine, cars, etc. By not putting all your investments in the stock market or real estate, you’re creating different areas to reap your financial rewards.

• OMG! Debt? Why “debt-free” is not the way to be.

It’s been hammered home that we should get rid of all of our debt before we retire. However, I disagree. Yes, some debt is bad, like high-interest credit card debts, but debt that is also a way to help save more money can be a good thing. For instance, that mortgage you’re paying is fine to take the whole time to pay it off if it frees up cash for other, wiser investment opportunities. Don’t double down on mortgage payments and stop saving in your 401k. That investment will benefit you more in the long run than living in a house you completely own 10 years faster.

For more tips on how to maintain a level head during financial downturns, visit tswealth.com.