The Common Fears About Money And How To Overcome Them

The Common Fears About Money And How To Overcome Them
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Money elicits a wide range of emotions in us. On the other hand, fear is more or less continuous throughout and among many people. We are afraid of discussing it, earning too much, earning too little, and so on. Fear is ingrained in our innate need to live, and it is impossible to eradicate it quickly with facts and data.

As financial planners, we are aware of this and how emotions influence our financial decisions. We undertake a few activities with our clients at the start of the financial planning process to understand these emotions and their stories — our punch line is “understanding people before numbers.”

“In the broad scheme of things, money isn’t that significant,” writes Bill Bachrach in his book “Values-Based Financial Planning.” It’s only relevant if it permits you to enjoy the important things to you. And creating a life that fascinates you, nurtures people you love, and achieves your deepest dreams requires not worrying about your finances.” But fear holds you back – let’s look at the Most Common Money Fears and how to overcome them so you may live a happy, stress-free life.

I will lose all my money

We work hard for our money and continuously look for ways to save and earn more. Many of us lose money due to poor investments, poor decisions, or inflation. But this is something we are always afraid of, and we have nightmares about investments going bad or being defrauded. We are afraid of making financial decisions because we fear losing all of our money.

Rather than harbouring unfounded anxieties, it is preferable to take little measures toward financial management. We can enlist the assistance of professionals to invest our funds. We will be more confident in our decisions and will not make major errors or losses.

What if I lose my job

Companies are fiercely competitive, and they are constantly looking for methods to boost earnings and save costs. Asking staff to leave the organization is one approach to cutting costs. They may lay off employees during a recession or other difficult circumstances. We cannot be continually afraid of this because it will make us anxious and negatively impair our work effectiveness.

Rather than being concerned about being laid off, it is preferable to work efficiently. It is critical to fit into the company’s culture where one is employed. It is critical to take on new tasks and improve one’s abilities so that in the event of a crisis, one can obtain a new job or a different role within the firm. Having an emergency fund can also provide you with some peace of mind.

Also Read: Which Sector Has Highest Hiring Rate- Monster.com’s Report

Will, I ever have enough money

We are often concerned about outliving our fortune. We believe we will never have enough money due to rising life expectancy and elderly medical crises. However, this is unreasonable once more.

We should create a financial strategy that includes retirement goals. The retirement goals should be set so that we know how much money we’ll need to maintain our current lifestyle and pursue other objectives once we’ve retired. Then we should work on putting the financial plan into action to have enough funds. The financial plan should be evaluated regularly and adjusted as needed.

I will make mistakes while managing my money

We work hard for our money and are thus terrified of losing it. We leave the money in the savings account because we are afraid that we may make poor investment decisions and lose money.

Rather than becoming concerned, we should work to improve our financial and investment expertise. We should invest in little increments. We should begin with low-risk investments and progress to higher-risk (volatile) investments. At the same time, our investments should reflect our emotional and financial risk-taking abilities. We can also engage with financial planners to create a financial plan and guarantee that we do not mismanage our money. Instead of feeling sorry for ourselves and blaming ourselves, we should strive to understand what went wrong, how it went wrong, and what lessons may be learned from such an experience.

My online financial identity will get stolen

We now conduct many financial transactions online. We frequently use credit cards. This raises the risk of our accounts being hijacked or our credit cards being duplicated. Although the number of cybercrime incidents is on the rise, we may take precautions to protect our online financial lives.

Online account usernames and passwords should not be shared with others. We should check financial accounts regularly to respond swiftly if fraud occurs. We should notify the bank of any changes to our contact information and avoid clicking on dubious links. The safety of our online financial transactions is within our hands.

I am fearful of discussing money

When it comes to money, we are superstitious. When it comes to money, we don’t always think sensibly. We believe that discussing how much money we have will cause us to lose money. We believe others have too much or too little compared to us and refuse to discuss it. We are embarrassed to discuss poor investing decisions.

However, it is critical to discuss money with individuals we can trust. Married couples should discuss money, money habits, and money decisions so that they are both aware of how much money they have, how much money they need, and what can be done to improve their financial situation. You might get money management tips from your parents because they may have faced similar difficulties at different periods of their lives. It’s critical to have honest and open conversations with your financial planner. You can only create and implement a realistic financial plan that helps you meet your financial goals.

Also Read: Is It A Waste To Continually Pay Health Insurance Premiums?

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