7 Ways to Conquer Your Money Fears
This year has been full of challenges. A friend of mine put it in perfect terms calling it the year of Self Agency. We’ve been forced to adapt to working remotely, we had to figure out alternate ways to plan our meals, and for those with children, we’ve had to take on virtual learning. This unprecedented year has also brought financial matters front and center for many of us. And as we round the end of the year, for some, money has become a central concern and even a fear they are reluctant to face.
At Refresh Investments, our passion is to help our clients conquer their money fears by meeting them right where they are in their financial journey. Below are seven suggestions for how you can conquer your money fears and start feeling more confident about your financial life.
Be kind to yourself
It’s okay to feel what you are feeling. The financial industry is full of confusing jargon and oftentimes confuses people on purpose. According to a Women, Money and Power Study from Allianz Life Insurance Company of North America, 49% of women fear they will end up broke and homeless. If you have similar feelings, know that you are not alone and don’t be so hard on yourself. Wanting to conquer your fear is a great first step.
Talk with someone you trust and feel comfortable with
Acknowledging your fears by speaking with someone can put things into perspective. It’s no secret that when we talk about our problems we often feel better. Discussing your concerns with a friend, family member or trusted confidant can give you the confidence to face your fears.
Facing your fears
Journaling has many great benefits. Writing down your major financial concerns and fears can relieve stress, help you prioritize which ones to address first, and generally improve your mood. The act of putting them down on paper gets them out of your head, and can help you see them with a new perspective.
Become Risk Aware not Risk Adverse
To become more risk aware begin by educating yourself. This might involve signing up for an online financial literacy course, purchasing a personal finance book, or hiring a financial coach or advisor. Becoming risk aware can naturally ease your fears by giving you a better understanding of your financial situation, and clarify the goals you want to achieve with your money.
Take it step by step to create a plan that works
After defining your goals, break them down into smaller milestones. Then think of the steps that need to be done to achieve each milestone. These steps should each be a manageable action that you can schedule and accomplish in a time frame that works for you. If you’re working with a Financial Planner he/she can do this for you in a way that aligns with your own rhythm.
Change your money mindset
If you want to feel secure financially, you need to believe in yourself. Everyone has a money story that shapes their philosophy and beliefs. Think about what habits your money story instills in you, and how you can create new ways to consciously improve your situation. For example, if your story is telling you that you’ll never understand how investing works, think of how you can change that story. Working with a financial professional whose value is educating their clients, or proactively educating yourself on how investments work are both good strategies. You are in control of your own money mindset, and only you can intentionally decide to change it.
Forgive yourself for any past mistakes
Don’t let financial mistakes you’d made in past prevent you from creating a better financial life for yourself. We’ve all made mistakes in life, and the best thing we can do is learn from them. If you can keep a long-term perspective, then a few short-term hiccups won’t derail your goals. Moving on from your mistakes is not only good for your emotional health, they can become great sources of motivation to achieve the financial life you want.
If talking to someone about your fears is something you’re wanting to do, consider signing up for our Money Mondays session. We host them every month to chat one-on-one with anyone who has general financial questions, and to help them decide if now is the right time to work with a financial advisor.
The information provided in this article is for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Refresh Investment’s views as of the date of this presentation. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessary come to pass. Refresh Investments does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. Refresh Investments has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other Web Sites maintained by third parties over whom Refresh Investments has no control. Refresh Investments makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. Refresh Investments is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of Refresh Investments.