Before the next crash, write this letter to yourself
When panic hits, logic won’t help. But your own voice from calmer times just might
The biggest challenge today is that most investors prepare for returns but not for their own reactions. Every serious investor should write one document before the next crisis hits.
It’s not a prediction.
It’s not a forecast.
It’s not a market opinion.
It’s your emergency behavior letter a note written by your calm, rational self to your future emotional, panicked self.
Why this matters
At some point in your investing journey, you will face:
A 20–30% fall in the market
A sharp underperformance in your best fund
A flood of headlines predicting worse to come
Peers exiting, pausing SIPs, and moving to “safety”
And in that moment, data won’t help you. Your past experience won’t help you.
Even logic may not help you. The only voice that might cut through is your own from a time when you were grounded, clear, and honest. That’s what this letter is for.
What is an emergency behavior letter?
It’s a pre-written message from you the thoughtful investor to your future self who might be:
Tempted to exit
Thinking of switching funds
Ready to act out of fear or frustration
About to abandon a well-built plan
It’s a reminder of who you are, what you decided, and why you must not act emotionally. It doesn’t guarantee anything. But it increases your chances of staying the course by giving you something real to come back to.
When should you write it?
Now.
When things are fine.
When markets are stable.
When your funds are doing okay.
When your mind is clear.
This is the only time you’ll write it truthfully. Once fear kicks in, you’ll rewrite your story. This letter protects you from that rewrite.
What should your emergency letter include?
Use this structure keep it short, honest, and personal.
1. Start with your truth
Remind yourself of your long-term intent.
“I’m investing for the next 20–25 years. My goals are retirement, my child’s education, and building freedom with time. Short-term pain is irrelevant to those goals.”
2. Acknowledge the feelings
Don’t deny fear. Address it directly.
“I know I’ll feel scared, doubtful, and possibly regretful when I read this. That’s normal. But these feelings aren’t new they happen in every market fall. And they always pass.”
3. Repeat what you already decided
State your rules and strategy.
“I committed to:
Keeping my SIPs going through every cycle
Reviewing my funds only once a year
Not making decisions based on 1-year performance
Holding my core portfolio unless the fund’s style changes”
4. List your past mistakes (if any)
Remind yourself why you built a system.
“The last time I exited during a correction, I regretted it and re-entered late. I promised myself I wouldn’t repeat that. This letter is here to hold me accountable.”
5. Speak with compassion and clarity
This isn’t a lecture. It’s a hand on the shoulder.
“You’re not weak for feeling unsure. But remember, the discomfort you’re feeling right now is part of the plan not a signal to abandon it.”
6. Close with a choice
End with one sentence that brings you back to your core.
“I can either act from fear today, or I can hold the line and let my future self thank me.”
Optional: Add a printed version
Print this letter and keep it with your portfolio tracker or in your investment file. You can also record a voice memo for yourself sometimes hearing your own voice from the past has more power than reading words.
Final thought
You don’t need to be fearless. You just need to prepare for the moments when fear will show up loudly, confidently, and with perfect logic. Your emergency behavior letter won’t stop fear. But it will stop fear from being the only voice in the room. And sometimes, that’s all you need to stay the course.
Coming up next
What panic selling actually costs you, with real numbers
How to build a 3-sentence decision filter for investing
Why staying put is a strategy not a lack of action
How to automate your system so emotions don’t get a vote
Emergency letter template (print it)
Write it when markets are fine and there is no panic or fear around. Open it when markets correct and read it out loud. Customize it for yourself.
If this helped you think differently about how to prepare, subscribe to Stock Market Explainers the newsletter trusted by thousands of grounded investors. No noise. No hype. Just clarity. Feel free to share this with someone who might need it later.
