What Is Financial Fear? And How to Manage It
It’s spooky season! And do you know what can scare us even more than creepy ghosts and killer clowns? Our finances! Many people would rather walk through a haunted house than look at their credit card bill or retirement balance. Fear is a response to feeling threatened and it’s a normal part of life designed to keep us safe, but there are actions you can take to reduce your financial fear.
What is financial fear?
Financial fear is a money-related worry or concern. Common financial fears include:
Losing a job
Not being able to pay bills
Not being able to retire
Getting into debt
Losing money through investing
High medical bills
If your financial fear is frequent or significantly impacts your day-to-day life, you may be experiencing financial anxiety.
How can you manage financial fear?
While you probably can’t eliminate financial fear completely, you can use it constructively to address areas of your financial life that you’re worried about. Here are the steps:
Identify your financial fears
Not everyone has the same financial fears. To start, put your own financial fears into words. What money-related concerns keep you up at night? Think about your financial behavior: how you do or don’t spend your money, how you do or don’t invest your money, and how you do or don’t use credit cards. These will give you clues about your fears.
Create a plan
Once you’ve written down your financial fears, create a plan to address them. Many financial fears (losing a job, not being able to pay your bills, going into debt) stem from running out of money. If this is the case for you, start building your 3-to-6-month emergency fund. Having that cash cushion can alleviate your fear of an empty bank account. The fear of not being able to retire is compounded by all of the unknowns about the future. While you can’t change that, you can create a retirement goal based on your current situation. For additional peace of mind, work with a financial professional (like a Certified Financial Trainer!) to create your plan. They can provide guidance and context around the specifics of how much cash you should have or how much you should save for retirement.
Go deeper
While putting a financial plan into action will help reduce your financial fear, it’s not always enough to address the deeper issues that your fear stems from. If that’s the case, seek out a financial therapist who can help you dig into your feelings around money and where they come from. This can help break negative thought patterns related to money that are affecting both your behavior and peace of mind.
Final Thoughts
Addressing your financial fears requires action. You’ll need to change either your financial situation or your mindset (often both!), but you don’t have to do it alone.
Need help with financial planning around your financial fears?
To get started, schedule a free 20-minute consultation call to speak to a member of our team. We will ask you a few basic questions to get to know you more, walk you through our financial training program steps, and answer any questions you may have. No pressure to join! Need advice quickly? Talk to one of our Trainers on Demand.