We all want to be a financial success but unfortunately, not everyone really gets there. It is not really because we do not have the capabilities to be a success. It is also not because we do not have the capital to back up our dreams. Sometimes, the problem lies in the financial fears that are keeping us from making goals and reaching for them. If you just eliminate this fear that you have, then maybe you can have a chance to improve your financial situation.
When you think about it, fear is normal. It does keep us from making too many mistakes by prompting us to be careful and cautious of our actions. However, too much fear can paralyze you and hinder you from exploring your full potential. You deserve more than what you have right now – even if it is just to help you have less stress and more peace. You just have to be brave enough to face down what scares you – especially when it comes to money.
4 money fears and how to conquer them
There are 4 different financial fears that cause you unnecessary anxieties. Let us discuss them one by one and what you can do to help conquer them.
Fear of losing your job
The first fear is losing your job. Who is not scared of losing their main source of income? After the latest recession, we all had the impression that anyone is dispensable. One moment you are earning a 6 figure income and the next, you can be jobless. The fear of the uncertainty of your job stability should be enough to give you unnecessary stress. While this is understandable, you can remove this if you only prepare for it. You have to know that there are other sources of income and tapping into them is the best way to deal with your fear of unemployment. Diversify investment and set up passive income businesses. These will help secure your finances and alleviate your fear of losing your job.
Fear of debt
Another one of the financial fears that can keep you from success involves debt. People fear credit because they do not want to waste money on interest and they do not like how it restricts them from using their money as they wish. While a debt-free life is okay, you have to understand that there are good debts and there are bad debts. You just have to find out what they are. To simplify, a good debt is credit that puts money in – like a home loan (increases your net worth) and a business loan. A bad debt is credit that only takes money away – like a credit card debt.
Fear of theft
Anyone who is not scared of theft is crazy. There are many fraudsters out there and you cannot stop being vigilant if you want to protect yourself. Thieves – especially those operating in cyberspace are causing a lot of troubles now. Your identity can easily be taken from you and used to take in credit that can ruin you for a long time. To battle this financial fear, you may want to educate yourself and know the latest update on scams. Visit Justice.gov and FBI.gov to know more about this.
Fear of bankruptcy
One of the financial fears that are related to debt is bankruptcy. While debt experts will tell you to do everything that you can to avoid bankruptcy, you have to know when you should face the music and just give in. Although bankruptcy can ruin your credit score, it is not the end of the world. Some people are able to build up their lives 4-5 years after bankruptcy. It involves discipline and hard work – but it is possible to rise from this and be successful.
Use financial education to gain courage against what scares you
Everything that we discussed is rational financial fears but there are ways to help you get over them. The main solution that is obviously common for all of these fears is financial education. We fear what we do not understand. In the end, knowing about the problem or the potential problem will help you face it down.
For instance, knowing the benefits of bankruptcy and how you can get up from this financial status will help you face this necessary debt relief program. While you are scared for your credit score, knowing how to improve it will lessen the fears that make you hesitant of bankruptcy. The same is true for debt. If you understand debt and you know how to pay it off properly, you don’t have to fear it.
Apart from understanding, being prepared is also something that you may want to work on. Financial security can calm a lot of financial fears because it addresses the uncertainties that we have for the future. Our fear of losing money or our jobs can be solved by being secure about our finances. So put your money on safe investments and always have a backup plan. If there is something that you are feeling anxious about, find out more about it to settle your fears.