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Finances and Fear

Finances and Fear

| January 27, 2017
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Fear—whether we admit it or not, it is an emotion we all experience. My daughters are frightened of thunderstorms, I’m fearful of heights, some people experience anxiety during public speaking, others panic at the thought of driving on a busy highway. Some fears are based on a past distressing personal experience; others have no grounding in reality. Money, whether you have an ample supply or not, also creates anxiety. 

What scares you about your finances?

Certain people are terrified of running out of money during retirement years, others fret over their debt, cash flow, or the stock market. I worry about having the financial resources to support three children—including paying for college.  

My 2017 challenge:

  • Acknowledge what causes financial angst
  • Talk about it with someone such as a family member or financial planner
  • Create a plan to combat your financially related fear

The goal of this exercise isn’t to focus on the fear, but to use it as motivation. In my case, my husband and I need to take a hard look at the future costs of college (which is enough to strike fear into the hearts of every parent), how much we want to contribute, and how much we can realistically afford each month to save.  We have college accounts set up for two of our children, but I’ve been delaying on creating a new account for our third child. Why? Because it means facing the reality of three children in college just a few years before our retirement years (yes, we had children later in life). On the flip side, I KNOW I will feel so much better once I just open the account and set up the automatic monthly contributions. 

Facing your financial fears and taking action on ways to overcome them will lead to a more secure future for yourself and your family. Not to mention sleeping better at night.

Go confidently in the direction of your dreams. Live the life you have imagined. Thoreau

 

Opinions expressed are that of the author and are not endorsed by the named broker dealer or its affiliates.  All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.   The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.

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