How to Manage Your Money During Good (and Bad) Times | Stash Learn
How to Manage Your Money During Good (and Bad) Times
By: Team Stash
Published: Nov 26, 2018
• Updated: Jun 09, 2026
The economy has its ups and downs. Consider these tactics as a way to help you survive market storms.
In this article:
You wouldn’t go into the jungle without a map. Why would you create a financial plan without a survival guide?
After all, no one knows what the future holds. The market, by nature, is unpredictable. So is life. We never know when the rain may fall.
If we’re in the throes of a market correction, bear market, or personal financial crisis, you’ll probably be glad you have a set strategy in place.
Saving money
Establish a budget
Budgets don’t have to mean depriving yourself. Think of it as a blueprint to reaching your goals while still getting your bills paid.
Looking to get started? Check out how to set up a 50-30-20 Budget.
Why do I need an emergency fund?
An emergency fund is the most important aspect of any economic survival guide. This money, which sits in your saving account, should be easy to access in times of crisis.
A crisis can be a medical emergency, a move, or a layoff. It’s not for groceries, vacations, or holiday or birthday gifts.
How much should I save in my emergency fund?
At Stash, we recommend 3-6 months of expenses that you’ll need to pay: rent, food, credit card, and student debt payments. This money should be used for when the chips are down and you need to break the glass. You can always rebuild it.
Investing
Why should I create a diversified portfolio?
Wait, what’s diversification again?
A quick refresher: Diversification means making multiple investments, so your portfolio’s performance is not tied to a single asset class, industry, company, or region.
Why does asset allocation matter?
Asset allocation is the process of dividing the investments in your portfolio into different asset classes across the globe. These classes include stocks, bonds, cash, and alternative asset classes like commodities.
In summary, the term refers to the particular mix of investments you own, and you can calculate the allocation out to get an idea of how diversified your portfolio is.
Should I keep Auto-Stashing if the market goes down?
We say yes. If you continue to invest regularly, contributing small amounts to your investment account during both market highs and lows, you will be improving your long-term outcomes in two ways.
Auto-Stash is a tool that helps you invest regularly in a disciplined way.
If the market goes down, should I sell my investments?
At Stash, we want you to think long term. Don’t think of your investments and savings in terms of days or weeks. Think years, or even decades ahead. If you sell your assets during a market correction, or during a full-fledged bear market, you’re locking in your losses.
Retirement
Should I open an IRA or retirement account?
It may seem counterintuitive. Why save for retirement when the market is down?
It’s about time in the market and not timing the market and the sooner you start investing, the better off you will likely be in the long-term.
Should I take money from my retirement accounts?
No. Your retirement accounts are for one specific goal: retirement. If you withdraw money from them early, you’re losing a percentage of your savings to taxes and fees.
Creating that emergency fund is a better move if you need cash quickly.
Stash for life
Creating a plan to get you to your goals is a great way to keep calm and carry on with your life.
Written by Team Stash
We teach people how to build good habits, save more and make it easy and affordable to get started investing.