Fear of Finances? It’s Not So Scary!

By Joe Globensky, RFC®

FInance Fear

If you find yourself with a fear of finances, you’re not alone. This fear may hold you back from reaching your financial goals in life. If you are reading this, you have taken the first step to overcome those fears, or at least confront them head-on. Our financial advisors want to make you comfortable and help you gain the knowledge needed to help you achieve your financial goals. Let’s look at some of those fears associated with finance.

Finance Fear – The Dreaded Budget

You’ve probably heard from a young age to create a budget within which you can live. However, different stages of our lives bring up different fears regarding budgets. When we are starting out in life we worry about how a budget can be a drain on our lifestyle. I mean, in our early 20’s, who wanted to end the weekend on Friday night because we used our entertainment budget so quickly? Later in life many of us need to learn how to budget with another person. If one couldn’t do it, how are the two of us going to?

Overcoming The Budget Fear

While having a budget in your early twenties can be a bit of a drag, it is important to get those habits established so that you can have a successful financial future. When setting your budget in your twenties, be sure to pay yourself first and pad your entertainment budget if that is a priority to you. But keep in mind, if you are increasing one part of your budget you’ll have to sacrifice another part. It’s all about give and take.

You’ll need this budgeting experience if you get married and combine incomes and expenses. You may have two different financial styles which may clash. Sitting down with your partner and discussing how the two are going to mesh is essential. Work on a budget in which both of you contribute ideas and revisit the budget early as a couple to ensure the original plan is working, and adjust if needed.

Finance Fear – Overwhelming Debt

Sometimes we get into a situation where our debt seems so overwhelming we cannot see our way out from under it. Student loans, mortgages, car payments, and credit cards can add up to a pretty huge mountain. If you do nothing, this mountain will always be there and may continue to grow.

Fear Is Keeping You In Debt

Face your fear, knowing that if you don’t do anything about it you will never get out of debt. A financial plan is essential, and the sooner you start, the faster you’ll get results. If your goal is to be debt free, do not incur more debt and work on your plan to reduce. In a year, you’ll be one year closer to your debt free goal.

Finance Fear – Unexpected Expenses

A big financial fear for many is the large unexpected expenses. These can be anything from replacing a vehicle, large medical expenses, or an appliance breaking down. Wondering what you will do if any of these things happen can be paralyzing. But, it doesn’t need to be.

Prepare For Unexpected Expenses

Remove this fear by preparing for it. Set aside money in an emergency fund to help with unexpected expenses. This emergency fund should be a minimum of three months of your salary. Having this in place can significantly decrease your fear of unexpected expenses.

Finance Fear – Job Loss

This is probably the number one financial fear many have. If you lose your job, there will be no money coming in. How are you going to pay your bills? Take care of your family? These things can cause anxiety just thinking about them. So, what do you do to ease this fear?

Stay Marketable, Have A Back Up

One thing you should strive for is to maintain your marketability. Don’t let your skills get lax. If your job offers training, make sure you take advantage of it. Tuition reimbursement? Finish that degree or advance the one you have! Keep your skills up to date so that if a layoff comes, you’ll be ready for another company. And that emergency fund we talked about before? That comes into play here as well. Having three months of your salary saved will allow you time to find another job without worrying about how you’re going to pay your bills this month.

Finance is not a scary word. You may be hesitant about some aspects of finance, but we’ve shared several ideas you can put in place to help change that. Your future financial goals depend on your ability to face your fears or reach out to someone who can help you. A financial advisor will take time to understand your concerns, needs and objectives and help you get on a path to overcome those fears.

Visit our website today or click here to schedule an initial meeting or call with us.

Recent Posts

Six Common IRA Mistakes to Avoid

Knowing the common IRA mistakes to avoid could save you thousands of dollars over your lifetime. We’ll cover 6 of the most common mistakes in this article.

4 Common Money Mistakes to Avoid

Are you making money mistakes as you pursue your goals? Here are four of the most common money mistakes people make as they ready for retirement.

The SECURE Act and What it Means For You and Your Family

What is the SECURE Act? (Setting Every Community Up for Retirement Enhancement) And what does it mean to you and your family? We help you understand, and also offer free workshops for more information. https://connectionsfinancialadvisors.com/upcoming-events/

5 Mistakes to Avoid in Beneficiary Designations

Naming a beneficiary can be an easy way to ensure your loved ones will receive their inheritance directly without waiting until the rest of your estate has settled.  But beneficiary designations can also be problematic so you should make sure they are correct since mistakes can be costly.  Here are five critical mistakes to avoid when dealing with your beneficiary designations.

Contact

Office: 217.605.8130
Toll-Free: 844.305.7670
Fax: 217.666.4188

604 N Union St Ste 1
Lincoln, IL 62656

Email Us

eNews

Sign up to receive the latest news, tips, outlooks and more:

Where are you located?

We are located in Central Illinois in the town of Lincoln. We also have an office in Plano, Texas. We work with a national clientele and will be happy to serve you.

Can I learn more about your services?

Sure. We advise clients on investment management, retirement planning, and other financial matters to help manage what they have. Because, many people save and invest, but they aren’t really sure they’ll have enough assets to be comfortable and do what they want in retirement or later stages of life. We show them whether they are on target or not. We can help you, too.

Would you like a no-cost, initial conversation to learn if you’re on track?

Yes, Thanks.