Ignore the Headlines. Why 2025 is One of the Best Times to Start Investing.

If you turn on the news, it probably sounds like the world is falling apart financially. The headlines are filled with doom and gloom about the stock market, inflation, and whether a recession is on the way. But just a few weeks ago, the markets were at all-time highs. That is exactly how the stock market works. It goes up and down.

This is where the phrase when in doubt, zoom out becomes so important. If you look at the S&P 500 today compared to this time last year, you will see that while there have been ups and downs, the overall trend has been upward. That is the nature of long-term investing.

But before we talk about investing, let’s take a step back. When doing a head to toe assessment of your financial situation, one critical area to address is the psychological side of money.

The Psychological Side of Investing

Financial literacy is rarely taught in school, so for many of us, our relationship with money is shaped by our upbringing. As a first-generation American, I was raised to believe in saving and frugality. The idea was simple: find a stable job, ideally with a pension, so you would be taken care of in retirement. Investing was never discussed.

But that is just one story. Everyone has their own upbringing, personal experiences, and even traumas when it comes to money. Some grew up in households where money was scarce, creating a deep fear of financial risk. Others may have seen parents or relatives lose money in the stock market and developed a strong aversion to investing. These beliefs can shape our financial decisions for life if we do not challenge them.

One of the biggest mindset shifts people need to make when investing is how they view a downturn in the stock market. Instead of seeing it as a crisis, think of it as everything being on sale. If you were planning to buy something and saw the price drop, you would probably jump at the opportunity. That is exactly how smart investors treat the stock market.

Why a Well-Diversified Investor is Not Panicking

If you have a properly diversified portfolio, you would not be living in fear this year. Done right, investing is not just about stocks. A well-structured portfolio includes bonds, which can provide stability during market downturns. It also includes a well funded emergency fund, ideally one to two years of living expenses set aside in a high yield savings account.

Beyond that, understanding the sequence of withdrawals in retirement is key. This means having a strategy for which accounts to pull from first to minimize taxes and maximize longevity. When your investments are structured properly, market downturns do not feel as stressful because you have planned for them.

Should You Invest If a Recession is Coming?

One of the most common questions I hear is, Should I invest if a recession is coming? The reality is that time in the market beats timing the market. Trying to predict when the economy will dip or recover is nearly impossible. History shows that long-term investors who stay the course do far better than those who try to jump in and out.

Instead of worrying about the next recession, focus on what you can control. Here are some ways to prepare financially:

• Build a solid emergency fund. Having three to six months (or even a year) of living expenses set aside can help you weather any financial storm.

• Reduce high-interest debt. Credit card debt and high-interest loans can quickly become a burden if the economy slows down. Paying them off now can give you more financial flexibility.

• Keep investing regularly. Whether the market is up or down, consistent investing through automatic contributions to your retirement accounts or brokerage accounts ensures you are taking advantage of long-term growth.

• Strengthen your job security. If you are worried about layoffs, now is a great time to increase your skills, seek additional certifications, or expand your network.

  
  

The Best Time to Start Investing is Now

If you have been waiting for the perfect time to start investing, here is the truth, there is no perfect time. The stock market will always have ups and downs. There will always be scary headlines. But what separates successful investors from everyone else is the ability to stick with the plan even when things feel uncertain.

So instead of sitting on the sidelines wondering if now is the right time, take control of what you can. Get clear on your financial situation, shift your mindset about investing, and start making moves that will build your financial future.

Because the best time to start investing was yesterday. The next best time is today.

Disclaimer: This content is for informational and educational purposes only and reflects my personal experiences and opinions. It is not financial, investment, or professional advice. Please do your own research and consult with a licensed financial professional before making any financial decisions.