- Financial fear and anxiety affect not just our money but also our life and career.
- One survey discovered that 43% of the participants reported feelings of fatigue, 42% said they are having difficulties concentrating at work, while 41% of them are experiencing sleep interferences due to financial anxiety.
- There are five common money fears most people are having. The good news is that there are also simple and effective solutions to defeat these financial fears.
- Visit The Financial Today’s homepage for more stories.
Financial fear and anxiety affect not just our money but also our life in general. In fact, according to the Mind over Money survey conducted by Capital One and The Decision Lab, 43% of the survey participants reported feelings of fatigue, 42% said they are having difficulties concentrating at work, while 41% of them are experiencing sleep interferences because of financial anxiety and fears.
Here are the five most common fears most people are having with their money and what you can do about them:
“If something unexpected happens, we won’t survive financially.”
Most of us can’t honestly say that we are financially secure enough to face life’s uncertainties. The root of this financial fear is coming from a lack of a financial plan or the poor execution of it.
If you are having this financial fear, the best thing to do is to revisit your finances and check if your life insurance and emergency fund are enough to withstand life’s uncertainties.
“Time is running out for me and I won’t get to live the life I hoped for myself and my family.”
The financial fear of running out of time comes from the root cause of poor retirement planning and execution. If you are getting anxious because of this financial fear, the first step you need to take is to seek expert assistance and determine the actions you can still take to retire comfortably.
You also need to accept the possibility that you will need to make some huge financial sacrifices for you to make up from the time you’ve lost on your retirement plan.
“I can’t get ahead in life because of my lack of knowledge about money management.”
We can’t deny the fact that managing our finances can sometimes be complicated. For some, the complexity of financial management becomes a hindrance for them to achieve their financial goals in life.
This financial fear comes from our lack of sufficient knowledge about money management. The best antidote to this crippling fear is to accept that you need help from finance experts. These professionals exist to help people navigate the complex subject of personal finance.
“My past financial mistakes destroyed all of my chances to live the life I deserve.”
In investment management, there is this popular disclaimer, “historical performance doesn’t indicate future results,” for clients to understand the risk they are about to take in an investment.
The same can be said with your finances. Your past mistakes don’t dictate your financial future. Starting to figure out the root cause of your past financial mistake would be a wise first step to defeat this fear.
If the cause of your past money mistakes is the lack of financial know-how, fix that by increasing your knowledge by reading financial books and taking courses related to money management. If your mone mistakes are due to the lack of financial discipline, then it is time for you to develop a system that will help you control yourself when it comes to the way you handle your money.
“I’m afraid I’ll end up like my parents when it comes to my finances.”
We live in a culture where parents expect their children to help them financially when they retire. The same culture makes children develop expectations that their parents will be there to assist them financially when they need it the most.
This culture of financial dependency on others causes us to be complacent and irresponsible when it comes to our own financial well-being. If this is the cause of your fear, all you have to do is to learn from the money mistakes of your parents and try to avoid making them as much as possible. Although this sounds simple, doing so is not easy as our parents’ financial habits are deeply embedded in our minds whether we recognize and acknowledge it or not.
Fear is a great indicator that something is wrong with our finances. Instead of avoiding these fears, try to stop and figure out what’s causing them and find a solution that will surely put an end to these crippling emotions.