Market swings, inflation, career disruptions, divorce, and the loss of a spouse can make even basic financial choices feel paralyzing. When personal or economic disruptions strike, trying to forecast interest rates or overhaul an investment portfolio often leads to costly behavioral mistakes.

Becca Craig, a wealth advisor with Focus Partners Wealth, says navigating financial unpredictability requires less focus on financial products and more on managing personal behavior. Drawing on the transition framework developed by Susan Bradley and the Financial Transitionist Institute, Craig outlines how a “decision-free zone” and a four-step checklist can help households regain control.

Below is an edited transcript of the conversation.

Why Financial Unpredictability Triggers Costly Mistakes

Bob Powell: Market volatility, rising living costs, retirement, divorce, and the loss of a loved one can make even simple decisions feel overwhelming. Where should people begin when facing that kind of uncertainty?

Becca Craig: Unpredictability is part of the human experience. Whether it stems from a major life transition or economic swings, you must separate what you can control from what you cannot.

The more time I spend in this industry, the more I realize success is rarely about a new financial strategy or product. It comes down to regulating your behavior and managing how you experience an unpredictable situation. That is what gives clients stability.

Powell: Susan Bradley of the Financial Transitionist Institute developed a framework for navigating these periods. One central concept is the “decision-free zone.” How does that help?

Craig: When a crisis occurs, people easily get lost in the weeds. The decision-free zone is about stepping back to look at the big picture and categorizing what needs to happen now, soon, and later.

Things like reviewing cash flow, checking insurance, and having essential family conversations can be addressed right now. What the stock market, inflation, the Federal Reserve, or an election will do—those outcomes play out later, completely outside our control.

A decision-free zone stops people from making irreversible, reactive moves with their long-term money during high-stress periods.

Checklist Step 1: Stress-Test Cash Flow

Powell: Bradley breaks the process down into a four-step checklist. Where does that start?

Craig: It starts with cash flow. If there is any question about money coming in or going out, cash flow is the baseline. You need to ask practical questions: Do I have sufficient cash reserves? Is my employment stable? Are my expenses predictable?

Consider that in 2025, a Federal Reserve survey showed that only 55% of adults had enough savings to cover three months of living expenses if an emergency occurred.

Powell: What practical exercise helps people get a handle on their spending?

Craig: Focus on one step at a time. Review your expenses from the past six months and separate essential costs from discretionary spending.

Then ask yourself: If circumstances outside my control forced an adjustment—such as the loss of a spouse, a divorce, or job instability—what would I be willing to give up? It is not about eliminating everything that brings joy, but knowing your options before a crisis forces your hand.

Powell: Essential and discretionary expenses are personal. A golf membership might be discretionary to one person and essential to another.

Craig: Exactly. It comes down to knowing what you value and making sure your spending aligns with those priorities.

Checklist Step 2: Hold a Proactive Family Money Meeting

Powell: What is the second step on the checklist?

Craig: The second item has nothing to do with financial products; it is about communication.

You need to talk with the people who rely on your plan, whether that is a partner, an aging parent you care for, or an adult child you support. During an emotionally intense period, having those conversations for the first time is difficult.

Set aside dedicated time for a family meeting before a crisis hits. Talk about financial priorities, obligations, and where you have flexibility, and get everyone’s buy-in. A little bit of awkwardness today beats a lot of confusion tomorrow.

Checklist Step 3: Audit Risk Management and Insurance Gaps

Powell: Step three focuses on insurance and risk management. Why is that critical during periods of change?

Craig: The best offense is often a good defense. People rarely review their insurance coverage—whether life, disability, health, homeowners, or auto—until they actually need to file a claim.

Discovering a massive coverage gap after something goes wrong creates immediate financial damage. Make an inventory of your existing policies, review the premiums and deductibles, and verify what happens if your circumstances change, such as leaving an employer.

Financial planning does not happen in a vacuum; your insurance policies and your broader wealth strategy must work together.

Checklist Step 4: Match Investment Assets to Real-World Liabilities

Powell: The final checklist item addresses market volatility and investing. How should investors approach their portfolios when markets are turbulent?

Craig: Financial headlines excel at making every market move feel urgent. As emotional intensity rises, so does the likelihood of making an expensive portfolio mistake.

Investors need to plan based on when they will actually need the money. If you maintain adequate emergency cash reserves and have proper insurance in place, you can treat retirement accounts as 10-, 20-, or 30-year investments. Having sufficient near-term cash gives you the psychological cushion to let market cycles run their course.

Powell: In other words, match the asset to the liability.

Craig: Exactly. If your short-term spending needs are funded with safe, liquid vehicles like high-yield savings accounts, you can live with overnight portfolio swings. You can sleep at night knowing those long-term investments have the time horizon required to recover and compound.

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