Common Financial Fears
When you were a child, you were probably scared of the monsters that lived in your closet and under your bed. As you are grown up these days, however, you are worried about worries which are much more tangled and probably revolve around money. Due to this, you are losing your peaceful sleep at night. If you are thinking that what are the common financial fears and how to overcome it, then go through this six of the most common financial fears and know how to conquer that money and finances fears.
1. A catastrophic event will Bankrupt Me
You get to know a story about your best friend’s cousin’s terrible accident, and you start to wonder when an accident, medical catastrophe or natural disaster will strike you.
One way to overcome financial fears is to ask yourself what I have got in place to cope with that should it happen. Being proactive can help assuage this fear.
There are various types of supplemental insurances you can buy in addition to whatever policy you currently have.
2. I will lose all my money in the market
It’s also sometimes caused by reading or watching the news. The media will high light the worst of the worst personal finance stories. So you hear about the person who lost ten million in one day and you instantly get nightmares of having your own loss of money and finances. Big losses happen to investor’s short term. If you buy and hold, you are unlikely to lose money over the long term. Big loses also happen to those who try to get rich quicker: Again, buy and hold long term, and you will be insulated against your financial fears.
3. My credit score is too low
For some people especially PF weirdo, a high credit score is a status symbol. They want to join the mythical 850 club. Even if you managed to join 850 and think that you will get rid of your financial fears, you would not stay there for long. Credit scores change constantly and your financial fears will come true.
Overcome from the financial fears. A good credit score is important. The better the score, the better the rates you will get on loans. When you are about to make a big purchase or sometimes, rent an apartment your financial fears gets more prominent.
If you aren’t planning to do any of those things in the near future, Don’tworry about the score too much.
4. I have to work whole life
The days of a nice pension at the end of working life are long gone for most of us. People are living longer too, but a longer lifespan doesn’t always translate into a good quality of life. The last years would not necessarily be years in which you are physically fit and fine or able-minded enough to work. But you still have bills to pay and foods to buy. The money can run out years before your life does. There are ways to overcome your financial fears after retirement also: You can make money from your hobby, or you can set up your own business and overcome your financial fears.
You can be first to leave a comment