Most of us are overwhelmed with a certain financial fear. Some of us may take the conscious effort to resolve it. However, many of us do not take the necessary steps to overcome it. They simply allow the financial dilemma to drive their life choices. Fortunately, it does not always have to be this way! You can change your financial patterns by starting with awareness.
Consider if one of these common money fears apply to you:
1. FEAR OF BEING FINANCIALLY ILLITERATE
According to Kathleen Kingsbury, a financial author and money coach, women typically complain about being too stupid to learn about finance. This is not true! Since women learn by conversing, realize that your lack of financial knowledge is due to the lack of socialization related to money.
Solution: Join or start an educational club about personal finance or investing.
2. FEAR OF DEPENDENCY
As we live in an Asian country where close family ties is generally vital, it has become a part of our culture to be interdependent. We feel the need to take care of our family members physically, emotionally, and financially. Especially if you deem that your aging parent or your unemployed siblings cannot deal with the finances by themselves, you feel partly responsible for them.
Solution: Put your own finances on top priority first. Then, make a realistic financial plan that will help your other family members.
3. FEAR OF HAVING TOO MUCH MONEY
Believe it or not, there is an abundance of people who fear the unknown realm of having too much wealth. This is not a conscious fear as many can only dream about becoming billionaires in Singapore. However, there are still people who sabotage their own finances because of this unaddressed fear.
Solution: Be completely honest with yourself and examine if this is a genuine problem in your life.
4. FEAR OF NOT HAVING ENOUGH MONEY FOR EMERGENCY
Many people are afraid of not having enough money on-hand for emergencies. Yes! It is good to boost your savings and your emergency fund but, this fear may hinder you from growing your wealth. You hoard your money in low-interest saving accounts just to be “safe”. When in fact, this fear keeps you from making calculated risk in investments and increasing your savings.
Solution: Discuss with a financial professional about the advantages of compound interest and about ask for a feasible money strategy that fits your goals.