As we find ourselves in the midst of another election season, it’s natural to feel a mix of emotions and concerns about the future. As a Certified Financial Transitionist, I’d like to offer a unique perspective on how to approach this period of potential change.
Understanding Change Through the Four Stages of Transition
While elections can bring significant shifts in our personal, political, and national landscapes, we need to remember that change is an inevitable part of life. The Financial Transitionist Institute, founded by Susan Bradley, has developed a powerful framework for understanding and navigating change through four distinct stages. By understanding these stages, we can better navigate changes with grace and clarity.
- Anticipation
We’re currently in the anticipation stage, which extends from now until the announcement of the next president. This is a time of preparation and reflection as we consider what may come next.
At this stage, it is important to avoid an all-or-nothing mindset, as we don’t know what may happen yet. You can especially help maintain your sanity by stopping every now and then and examining the stories you’re telling yourself about potential outcomes. Are you playing out old themes or patterns that are no longer helpful? Are your expectations or assumptions influenced by past experiences, upbringing, friends, family, or social media? Be aware of your sources of information and how they may be influencing you. You may want to step away from social media, for example, and take time for pursuits that keep you calm and focused on positive aspects in your life.
- Ending
The ending stage occurs when the big event happens and immediately after. In an election cycle, this is from the winner’s announcement to the inauguration. It’s a short but intense period of change management. During this time, it’s important to remember that this stage is normal and the intensity is temporary.
Whether you feel elated or deflated, or a combination of both, this may be time to get some data on your side to help organize and prioritize your needs. It can also help ground you during a time of high emotions. Perhaps it’s time to reassess your financial position objectively and ask yourself what has changed or is changing for you. You may want to go back to your balance sheet and ask if there is something you need to do or to focus on.
This often feels like a “doing” time, so if you are feeling that, try to maintain your focus on what truly needs to be done. Consider talking it out with a thought partner to help you see what needs to be addressed now and what can be addressed later. It’s also possible that nothing needs to be done right away, so leave yourself open to that possibility, as well.
- Passage
This is the longest and often most turbulent stage of transition. In terms of an election cycle, Passage is typically the first one to two years of a new administration. It’s tricky because most of us expect to go from “Ending” right into “New Normal.” People don’t expect Passage and we as a society aren’t very well equipped to handle it. This is the time of relating to the change that has happened and adapting to it. This is where we may need to give ourselves and others a lot of space and grace.
During Passage, it can be helpful to (as Susan Bradley says) “give yourself room to back up and turn around.” In other words, don’t make hasty or pressured decisions. Give yourself permission to change your mind as events unfold. Your “why” may change, which may influence your values and priorities, which in turn influence your decisions and actions.
On a personal level, you might want to prioritize taking care of your emotional and physical health. On a national level, historically, the first one to two years of a new administration often see sideways or even downward market trends as investors assess the impact of new policies. This is the time of real work as we process change both as a country and as individuals. It’s a time to be open and creative, to explore possibilities and put the pieces together.
- New Normal
By years three and four of a presidency, we usually reach a new normal. This is when both individuals and markets have absorbed the changes and feel more confident moving forward.
We have figured out where we fit in the new landscape, and we can look back on the change as something in the past, something we can learn from now that we have been through it. So this is a time to continue with long-term and short-term financial planning with renewed energy and confidence.
Years three and four of a presidency typically see stronger economic performance and more positive stock market trends as uncertainty decreases. We, and the market, can finally begin to “unwrap the gifts of change.”
Financial Planning in Times of Change
You may experience high stress levels during times of change, and that’s normal! Here are a few reminders on how to approach yourself and your finances with empathy and poise:
- Acknowledge your emotions: It’s okay to feel uncertain or anxious about potential changes. Use this time to reflect on what truly matters to you. Align your financial plans with your core values and long-term goals and desires to steady yourself.
- Practice self-compassion: Be patient with yourself as you navigate change. You may experience periods of chaos and periods of clarity, with big swings in between. Remember that adapting to new circumstances takes time. Breathe.
- Focus on what you can control: While you can’t predict election outcomes or market reactions, you can control your spending, saving, and investing habits. Doing so can make you feel empowered even while other things are out of your control.
- Seek professional guidance: Consider working with a financial advisor who understands the emotional aspects of money management and can provide empathetic guidance during turbulent times. If you’re feeling especially overwhelmed by the potential changes ahead or want to ensure your financial plan is robust enough to weather any political shifts, consider speaking with a Certified Financial Transitionist. We are specially trained to guide you through life’s transitions and align your financial strategies with your personal values and goals, ensuring that you’re well-prepared for whatever the future may bring.
I hope this is helpful. By understanding the stages of transition and approaching your finances with empathy, you can navigate election seasons with more confidence and clarity. Remember, change is a process, and with the right mindset and tools, you can emerge stronger and more financially resilient on the other side.
