As reported by Forbes, even before the start of 2023, people worldwide experienced financial fear associated with inflation, rising interest rates, and global conflict. Some can overcome these fears with support; however, others will let fear rule the rest of their lives. Living a life with financial worries can keep you trapped in an unhealthy mindset, even resulting in losing bigger money. GOBankingRates have listed some ways to navigate these fears and develop a healthy financial attitude.
Fear of Going Broke
Chloe Elise, a certified financial coach and CEO of Deeper Than Money, said people who have this fear are typically those who have observed it from their parents or grandparents. She says, “They look at money as always being scarce, and they fear they will run out.”
This belief can be challenging to break, but we should view money through an abundance mentality. It is best to adopt the “money flows to me” mantra to start welcoming money.
Elise recommended that you work this out by keeping your emergency fund in a high-yield savings account. She added that, as of right now, interest rates are over 3%, and you can also look for retirement accounts or real estate.
Fear of Feeling Stupid
The self-belief of “I’m not good with money” can lead to a domino effect of other fear-related behaviour that can impact your finances. Financial jargons, such as how APRs work and mutual funds, often sound difficult to comprehend.
Elise said if you already fear feeling bad about your money knowledge, it would also lead to fear of talking about money. Once you fear talking about money, you lose your opportunity to ask questions and get the answers that can help you increase your financial literacy.
Elise recommended coaxing yourself and don’t let the fear trap you. You can start by discussing money with family, friends, or co-workers. You can talk to them about bank or credit union and their financial goals. This way, you also gain new insights and lessen the fear.
Fear of Failure
Stephani Genkin, CFP and founder of My Financial Planner, shared that most of the client she encountered has a perfectionist tendency, aiming to save big amounts of money quickly. Genkin recommended not to let perfectionism take over your finances, and doing doable steps over time can also lead to big improvements. She said, “Allow yourself to be less than perfect. Slow and steady is good too.”