In Part 1 of Facing The 7 Biggest Money Fears This Halloween, we faced:
Fear of Never Getting Out Of Debt
Fear of Reviewing Bills and Bank Statements
Fear of Losing Your Job
Wow! Pretty spine-tingling stuff. Now we'll go deeper into your Biggest Money Fears. So hang on to your wallet.
Fear of Your Identity Being Stolen
This is again a legitimate money fear. You don't know when or where it will happen. Identity theft can be sprung on you like a chain saw character in a haunted house. The biggest fear is having your credit rating trashed by thieves. It can be a real mess getting it sorted out.
How to face this fear: Monitor your credit. Some places online charge a fee while others will offer it for free. You can get a free credit report and check it out. Plus, don't give out your social security number unless it's absolutely necessary. I often question why they need it on certain forms.
Fear of Being Responsible for Other People's Money
Many of us will be on committees or boards where we make decisions about money. Another common scenario is taking care of the finances of an elderly parent. Regardless of the situation, having fear that you'll make a mistake is pretty common. One of the ways I cope with the stress of managing other people's money is that I only make decisions for them that I would make for myself. In other words, if I wouldn't do it, why would a client want to do it. You can apply this same logic to your parents or a non-profit board you sit on.
How to face this fear: First, make sure you have all the information you need to make a good decision. Second, don't make a quick decision about money. Finally, like I said before, make decisions that you would feel comfortable making for your own money.
Fear of Being a Financial Burden
This one is a legit fear. I don't think anyone wants to be a physical or financial burden. I recently read that Genworth Financial did a survey and over 72% of women did not discuss it with their families for fear of upsetting them. Make sure you are handling your finances as well as you can. If not, hire a top-notch financial adviser and accountant to help.
How to face this fear: Assess how much health, disability and long-term care you need and can afford. Second, aggressively save as much as you can if you are still working. Third, arrange a family meeting to discuss it. Communication goes a long way in heading off this problem.
Fear of a Stock Market Crash
This may be every investors biggest money fear come October! We tend to think that every October brings not only horror movies and scary creatures, but market corrections too. Make no mistake a correction will happen, we just don't know when or how severe. Invest with timeless strategies to handle corrections of any magnitude.
How to face this fear: Make sure you have properly assessed your overall risk tolerance. Don't be aggressive in good times and overly cautious in bad times. In addition, make sure your portfolio is properly diversified. Diversification can help reduce the impact of a stock market correction. Of course, if you need help, seek out a qualified financial advisor.
So there they are some of the biggest money fears to face this Halloween. What are some of your biggest money fears? I'd love to hear what frightening financial fears you have.
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