The markets are bleeding. You see the red lines, the graphs that nosedive like a broken elevator, the anxious headlines warning of doom. For self-employed workers—those of us without a guaranteed paycheck or corporate safety net—this volatility hits different. There’s fear, sure. But there’s also that nagging voice: Did I do something wrong? Should I pull out before it gets worse?
If you’re asking those questions, I want to tell you a story.
The 2008 Lesson: Two 401(k)s, Two Mindsets
Back during the 2008 financial crisis, I was working a W-2 job. The economy was falling apart, and panic was in the air. I remember a conversation with a coworker that has stayed with me all these years.
She said, “My 401(k) dropped like crazy. But I left it alone. My husband, though… he panicked. He pulled out. Couldn’t sleep. Didn’t want to lose more.”
Years later, she was calm and confident. Her account had fully recovered—and grown. His? He was still sitting on the sidelines, too scared to re-enter. He had locked in the loss, and missed the run back up.
That story has been a guiding light for me. It taught me that emotion kills strategy, and when fear takes the wheel, it drives us straight into regret.
The Problem With Panic: You Can’t Time the Market
There’s a famous saying among investors: “Time in the market beats timing the market.”
But it’s more than a cliché—it’s a hard truth. Research shows that if you miss even just 10 of the best days in the market over a decade, your returns are dramatically lower. And guess when those best days often come? Right after the worst ones.
Which means that when you sell during a crash—because you’re scared, angry, or tired—you may avoid further losses… but you also miss the bounce. And getting back in? That’s the real problem.
Fear doesn’t leave when the market starts to recover. It just gets quieter. Then doubt creeps in. Should I wait a little longer? What if it drops again? And while you wait, the market keeps moving up without you.
So let me be blunt: panic and profit rarely coexist. If you’re trying to time re-entry, you’re not investing—you’re gambling.
Why Self-Employed Folks Feel It Deeper
As someone who’s self-employed today, I get it.
When I was only working a 9-to-5, volatility hurt—but I had a consistent paycheck. I knew I could ride out the storm. But what if you’re self-employed, with no fixed salary, market drops feel more personal. They feel like they hit you at the core of your financial identity.
But that’s also why I built layers of protection around my future.
Diversification Is Not a Buzzword—It’s Survival
Right now, I’m watching my stock portfolio bleed just like you are. And yes, I feel it. I see the unrealized losses and feel a pit in my stomach.
But I don’t feel paralyzed.
Why?
Because I’m not 100% in the stock market.
• I own real estate that cash flows every month.
• I’m building intellectual property—assets I own, control, and can license or monetize.
• I have business ventures and multiple streams of income, not just investments.
That’s not bragging. That’s having a strategy.
Diversification isn’t just about returns—it’s about resilience. It’s what allows you to keep your head clear during market chaos. When one part of your financial life takes a hit, the others can help carry the load.
Reframe Your Relationship with Risk
Here’s a word we all throw around: risk.
Financial advisors talk about “risk tolerance,” usually in some online quiz: Would you be okay with a 20% drop in your portfolio? But that question misses the point.
Risk is not theoretical. Risk is personal.
If you’re self-employed and all your clients pull back during a downturn, can you survive a few months without income?
If your rental property loses a tenant, do you have reserves to cover the mortgage?
If the market drops 30%, do you have to sell… or can you wait?
The answer to those questions defines your real risk tolerance—not your answer on a form.
Resilience is a Cash Flow Question
The single most powerful thing you can do as a self-employed person is to build a cash flow foundation:
• Do you have at least 6–12 months of emergency savings?
• Can you identify 3+ sources of income, even if they’re small?
• Is your monthly burn rate lower than your average income, so you have room to breathe?
That’s resilience. That’s how you survive downturns without selling off your future.
The Dreamer’s Dilemma: Building While Bleeding
Let me be honest: I’m not immune. I feel the pain too. I’m an investor, a creator, and a builder. I have dreams that depend on capital. And seeing a 10–20% drop in my stock positions? Yeah, it hurts.
But I keep building.
Why?
Because I’ve accepted that pain is the price of admission for wealth. And I’d rather feel short-term discomfort now than long-term regret later.
That’s the mindset shift I want for every self-employed dreamer: You are not your portfolio. You are the engine. The creator. The architect. The market is just one of your tools.
So What Should You Do During a Market Bloodbath?
1. Don’t Abandon the Plan
Revisit why you started. If your timeline was 10+ years, why are you judging your performance after 10+ weeks of chaos?
2. Stop Watching Every Tick
Monitoring your investments daily during a crash is like refreshing the weather app during a hurricane—it doesn’t change the storm, and it only increases stress.
3. Stress-Test Your Life
Run through a worst-case scenario:
• What happens if the market stays down for a year?
• Can you cut expenses?
• Can you generate more income from somewhere else?
Preparation breeds confidence.
4. Start—or Expand—Diversification
Now is a great time to:
• Learn about dividend-paying stocks or ETFs
• Explore digital products or courses based on your expertise
• Look into adding real estate (if feasible)
• Focus on building your own brand, services, or licensing deals
5. Talk to People Who’ve Been Through It
Find mentors, peers, or communities of people who’ve survived downturns. Their stories will give you perspective—and peace.
You Don’t Need to Be Fearless—You Just Need to Be Focused
You don’t need to pretend the market isn’t scary right now. You don’t have to ignore the numbers. But you also don’t need to abandon your dreams or goals.
This moment is a test—not just of your portfolio, but of your emotional discipline.
And trust me: the ones who make it out stronger are rarely the smartest or the most connected. They’re the ones who had a plan… and stuck to it when it got hard.
Final Thought: Own More Than Assets—Own Your Strategy
Being self-employed means freedom—but it also means pressure. When everything is on your shoulders, it’s tempting to react fast, move money, change direction.
But this is the moment to slow down. To zoom out. To focus.
You don’t need to be 100% right. You just need to stay in the game.
I’m not afraid of a red market—because I know I didn’t put all my dreams in one basket. I built streams. I built foundations. I diversified my future.
And if you’re feeling pain right now, just know: that pain is temporary. But your dreams are not.
Stick with your plan. Reinforce your cash flow. Diversify. And remember—wealth is built in the down cycles… it just doesn’t feel like it in the moment.
P.S. If this helped you, share it with someone else who’s self-employed and feeling shaky right now. We all need reminders that this storm will pass—and that we’re not in it alone.