Are you looking for financial freedom? There are certain habits, rules and techniques to follow to achieve this kind of life. More importantly, you need to remove the financial fears that keep you from the opportunities that you should be experiencing.
Some people may have adequate finances that will help them meet every day expenses but when they are saddled with all these fears, it is difficult for them to make the right decisions. While their fears may not be unfounded, there are ways to conquer them.
Like any other fear, you just have to face these money issues that you have and develop the right skills that will enable you to overcome them.
What are the 4 money fears and how to get over them
Let us discuss the four different financial fears that grip the hearts of most consumers and the corresponding ways you can conquer them.
Job security. A lot of us are scared of losing our means of income and that is because we lose the ability to finance most of our needs. In this consumerist society, money is the main element that will allow you to avail of the things that you need. May it be food, clothing, shelter or transportation, we all need cash to spend for them. This is a valid fear to have but it is also something that you can easily conquer. If you notice, the fear stems from having no income to spend. It is not really losing your job. So what you should do is to make sure that you have more than one source of income. That is how you can get over your job security fear.
Theft. The next of the financial fears is all about theft. Nobody wants to be stolen from – especially when it is your money. But when it involves your finances, you can be sure that scammers, crooks, thieves and other malicious people will be on the lookout for people whom they can steal from. If this is your concern, then you must protect yourself. There are ways like being careful when giving away your personal information, keeping your credit cards in a safe place and monitoring your credit report for any unauthorized transactions made under your name. You don’t have to be too paranoid about it but you need to take steps to make sure that you will not fall victim to any of it. That means keeping your eyes and ears open to the new ways that thieves use to take money away from you.
Debt. After the recession, people got a healthy dose of fear when it comes to debt. Some of them swore off this financial condition because of the hardship that it caused them. It is true that debt can dictate how you live your life and that is usually something that has a negative effect on you. However, that does not mean you should completely remove it from your life. There are debts that are good for you like student loans, business loans and home loans. You just have to learn how to identify which will benefit you. The key is to ask yourself – will this debt take money away from me or will it allow me to grow my finances? The answer should tell you whether it is a good or bad debt.
Bankruptcy. We are so scared of the word bankruptcy because we feel that it is the worst financial condition that you will ever reach in your life. While there is reason for that feeling, you have to understand that there are situations when bankruptcy is the only way out of your debt situation. Even if it can ruin your credit score, that does not mean it will stay that way. You can always rebuild your life and it will be much easier when debt is removed from the picture. Just make sure that you have a plan after you have your debts discharged. Make sure you learn the right financial management skills that will enable you to make better choices about your money.
Use financial planning and security to keep financial scares away
If you notice, the four financial fears can be solved by one or two of the following:
Financial planning. Investopedia.com defines this as yan evaluation of your financial state so you can use it to make decisions about future cash flows, assets and withdrawal plans. When you are creating a plan for your finances, you want to make sure that you take into careful consideration your future goals, wealth plans and your expected expenses. It helps you setup your money so that you can pursue the kind of lifestyle that you want to live. By having a plan, you get to take control of your life and that, in a way, eliminates the fear that you have about your finances. Most of the time, we fear what we do not know and we have no control over. But if you exert some effort into planning, then you can have that feeling that you are prepared for any possibilities.
Financial security. Having a financial plan oftentimes lead to financial security. An article in the Stepbystepfinancial.org site describes how one frugal mom defines financial security. She said that it is all about freedom from the fear of financial ruin. It is being without fear even if their income is lost because they know that they can get income from another source. It means not having to worry about monthly bills. Best of all, financial security means you are in your happy place.
We all know that fear is far from your mind when you are happy and the combination of these two will certainly remove traces of financial fears in you. So work hard, be wise and have the initiative to educate yourself. In the end, your fears can only be overridden by your own mind and belief in yourself.