Will money fears haunt you this Halloween?
Now that you're older, ghosts and goblins don't scare you anymore. But there's a more terrifying manifestation that haunts your every thought. It's far worse than any creepy creature you imagined under your bed as a child.
What is this beast that plays on your fears? It's money.
So this Halloween, instead of pulling the cover over your head, or turning on every light in the house, let's face a few of these money fears together. Rule #3 in my article "10 Scary Movie Rules for Investors"... NEVER split up!
Here are the Biggest Money Fears to Face This Halloween Part 1
Fear of Never Getting Out of Debt
As a financial advisor, I even tend to obsess a bit about this one. I sometimes think there will always be another bill just when I get close. Maybe for you it's the student loans, the cars or credit cards. Whatever the debts may be, you can and will get out of debt. The scariest part is realizing how deep it goes.
How to face this fear: Assess your debts and devise a plan to pay off the smallest first. That way you'll have a small victory and use the funds after payoff for the next debt. It's called the snowball method. Hire a good financial planner to help you, or if you are in way over your head talk to a consumer debt counselor.
Fear of Reviewing Bills and Bank Statements
This is just pure avoidance or denial. If you are at the point where you fear opening your bills and bank statements, you're probably in debt and have been overspending. By not facing this fear, you could be making things much worse. You could be getting late fees and penalties from your avoidance. Remember, ignoring this stuff doesn't make it go away.
How to face this fear: Get some help from a friend, planner or counselor. No matter what you've done, you need to face it and develop a budget first. Get your budget developed so you know what your discretionary spending can be. Then, don't spend more than you make!
Fear of Losing Your Job
Being laid off is a legitimate fear if you work for someone else. The greater fear here is after the layoff, not being able to find another job and pay your bills. You should be prepared just like for any other disaster.
How to face this fear: Be prepared by having at least 6 months of expenses saved in an emergency fund. It will help you if your job hunt lingers on, and you'll be able to pay your bills. Take some classes or get some additional training to make yourself more valuable to your employer. Or, do what I did, become self-employed. You'll never worry about a lay off again!
This is Part 1 of 2 of the biggest money fears to face this Halloween. Look for Part 2 which will include Fear of a Stock Market Correction.
What are some of your biggest money fears? I'd love to hear what frightening financial fears you have.
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