Finding Happiness During Uncertain Times
Lately, I’ve had a lot of conversations with people feeling uneasy about the future. Uncertainty—whether it’s about the economy, investments, or life in general—is nothing new. But knowing that doesn’t always make it easier to find happiness during uncertain times.
Interestingly, I recently spoke at a webinar on charitable giving, and while it may seem unrelated, there’s a strong connection between giving and happiness. Research even shows that generosity can help reduce anxiety and bring more joy.
The Link Between Giving and Happiness
Psychologist Elizabeth Dunn, in her book Happy Money: The Science of Smarter Spending, found that people who spend money on others tend to feel happier. But before giving, it’s important to take care of your own financial well-being—just like the airline safety reminder to put on your oxygen mask before helping others.
Financial Peace of Mind in Volatile Markets
Market uncertainty is a big source of stress for many investors. Since the start of 2023, the U.S. stock market (measured by the S&P 500) has risen more than 50%. Will it keep going up or take a dip? Honestly, no one knows for sure. But historically, the market has trended upward over time, rewarding those who stay invested.
To help ease financial anxiety, I always recommend having a “margin of safety”—money set aside outside of the stock market. Personal finance expert Terry Savage calls this “chicken money”—cash or conservative investments that offer stability when markets swing. The right amount varies for everyone, but having this cushion can help you feel more secure, no matter what’s happening in the headlines.
A Long-Term Perspective
Another way to stay calm during market ups and downs is to zoom out. Daily stock movements are mostly noise, and short-term predictions are nearly impossible. Instead, looking at history can provide perspective—since 1926, the U.S. stock market has ended the year with a gain about 75% of the time. That’s a strong track record for long-term investors.
Smart Ways to Give
Beyond managing financial uncertainty, giving to others can be personally fulfilling and financially beneficial. Here are two ways to give wisely while reducing taxes:
- Qualified Charitable Distributions (QCDs) – If you’re 70.5 or older, you can donate directly from your IRA to a qualified charity without paying taxes on the distribution. This is especially valuable if you don’t itemize deductions, as it allows you to give tax-efficiently.
- Donating Appreciated Stock – If you own stock outside of a retirement account that has significantly increased in value, donating it to charity lets you avoid capital gains taxes while giving the full value to the organization. This is a great way to maximize your impact.
Final Thoughts on Finding Happiness During Uncertain Times
While we can’t predict the future, we can take steps to feel more financially secure and find happiness in helping others. Preparing for uncertainty—and giving when possible—might bring some much needed peace of mind in an ever-changing world.
