Hark! I Hear A Cannon!

The local community theater is putting on a play, and George has been cast his very first speaking role. He is really, really excited, and when it comes to learning his lines, he is willing to put in the hard work.
Luckily for him, his line is simple: when he hears a cannon fire, he will exclaim, “Hark! I hear a cannon!”
He studiously tries his line in many different intonations and with varying placement of emphasis, much to the annoyance of his downstairs neighbors. (HARK, I hear a cannon! Hark, I HEAR a cannon! Hark, I hear a CANNON!)
Finally, the big day comes, and George is a little anxious, although he feels like he is ready to deliver.
The curtain rises, the crowd goes quiet, and the action begins.
When George’s scene opens, he comes ready from the wings, and plants himself squarely in place at stage right, just to the side of the main character.
The cannon roars, and out of George’s lips, at full stage volume, comes his line: “HOLY SHIT! WHAT THE F*$K WAS THAT?!”

Whether or not you thought this joke was funny, (you did, don’t try to deny it) there is much to be learned from George’s gaff. And today I would like to discuss my main takeaway. I mean, the joke is the main takeaway, but you get the idea.
People have been talking a lot about the recent stock market volatility these days, and for good reason. While the last decade, more or less, has seen fairly steady growth, the last year(ish) has seen some real bumps. And that’s ok, that’s what the market does.
The funny thing about all of this isn’t the market itself, it’s how we react to it. Notice my choice of words there: react, not respond. As I talked about in a previous article that I can’t remember right now, there is a major difference between a reaction and a response, and that is clearly evident in George’s knee-jerk reaction to the cannon fire.

Even if you are a relative newcomer to the Financial Independence community, you have probably heard about the idea of making a plan and sticking to it, especially in regard to your investment strategy. This is a great idea, and it is super important to make a plan while you are of sound mind to which you can then adhere.
George worked on his line diligently, but he was doing so without the pressure of the audience and the roar of the cannon, so when the time came to act he was, in fact, unprepared, although through no fault of his own.
We prepare ourselves for the emotional ride that is the stock market, or just about any other investment, by creating a plan and sticking to it, and we create that plan in the lull of safety and stability. Our heads are clear, and we can think without judgement clouded by fear or elation.
The tricky part is when we are under pressure and wanting to change our plan.
Fortunately for us, we are able to take a moment and pause before taking action. This pause allows us to respond to our emotions and bring ourselves back to our plan. You know, the one we made when we weren’t freaking out.

So here is what I want you to do, and we are all going to do this together: take a deep breath, and remind yourself that it is all going to be okay because you are smart, capable, and you have a plan!
Now that we are all feeling a little more under control, let’s take a look at your plan. Does it have a contingency in which you have allowed yourself, in the case of a momentary panic, to withdraw all of your money and bury it in a mayonnaise jar in the backyard?*
I’m guessing your plan does not have such a contingency. In that case, put the plan down, close your laptop, and go outside. I don’t care if it’s freezing cold out there; in fact, the colder, the better. Let the cold wake you up and bring you back to reality. Maybe even roll around in the snow for a little bit.
There now, aren’t you feeling better? Sometimes, even with the best preparation, we allow ourselves to go off the path we have set ourselves on. Much like poor George, who probably won’t be invited to next year’s auditions.

The best part about this tip is that you can use this for just about everything life throws at you. Come up with a plan for how you will respond when your kid throws their dinner on the floor, and then, when the little buggers decide to dump their beans ’n’ franks, go to the bathroom for two minutes and breath deeply while you remember the plan. The one that doesn’t involve putting them up for adoption, I mean. Or whatever, it’s your life.
I’m not saying this will work perfectly all of the time. In fact, this is something I struggle with all of the time! I am repeatedly being tested, and the way I am trying to see it is that every test is another opportunity for me to try this out.
Obviously we will never be perfect. And, also obviously, we can’t plan for everything. But if we try to think about how to respond to the big things that may affect our lives before they take us by surprise, we just might be able to keep this crazy boat afloat.

*If that is your investment strategy, be sure to add some mothballs in the jar so the money doesn’t disintegrate over time! No judgements here, only good information!