Tag Archives: money smarts

Summing Up Money Fears … So, What Are Your Fears?

 

Summing Up … So, What Are Your Fears?

Everyone has at least one.  It’s time to confront your deepest financial fear and get them in the open.  Whether it’s the fear of the soup kitchen or of making a mistake that is financially catastrophic, you can become inhibited from taking action. 

Identify them.  Write them down.  Just the mere fact that they are on paper opens the door for you to commit and confront them head-on. Ask yourself,

  • Are my fears realistic in today’s environment?
  • Are they relevant to what I currently do?
  • Do they hinder me from moving on?
  • Are they life threatening (to my spouse, partner, kids or job,

          friends, me)?

There will always be some type of fear.  Cartoon character Pogo said it best, “I have seen the enemy and the enemy is us.”  By bringing up your awareness level, identifying which fears influence your money decisions, you will achieve the first level of having money smarts.

Over the next several weeks, I’ll continue to post the top fear factors for today … to overcome your fear, and get back on track, get your copy of Money Smarts for Turbulent Times by Judith Briles–available in paper and ebook format.

Money Fears … # 8 The Fear of Not Trusting Yourself

# 8 The Fear of Not Trusting Yourself

Gender differences surface in the trust department with money and investing.  Men are less inclined to stick with an advisor whose advice has gone sour and they don’t abdicate financial decisions to someone else as easily as women do.  Advisors can help . . . but don’t discount your own experiences and intuitiveness.

Over the next several weeks, I’ll continue to post the top fear factors for today … to overcome your fear, and get back on track, get your copy of Money Smarts for Turbulent Times by Judith Briles–available in paper and ebook format.

Money Fears … # 7 … The Fear of Investing

# 7 … The Fear of Investing

When it comes to investing, there are no guarantees.  The value of the initial money you invested can increase, decrease or remain stagnant in value.

Investing takes time and patience. Don’t focus on what your investment is worth this week or even this month.  Concentrate on the long haul—what are you saving for five or ten years from now?  And when it comes to investing, invest in what you know and understand.  Health care offers a huge range of possibilities. 

Over the next several weeks, I’ll continue to post the top fear factors for today … to overcome your fear, and get back on track, get your copy of Money Smarts for Turbulent Times by Judith Briles–available in paper and ebook format.

Money Fears # 6 … The Fear of Borrowing Money

# 6 … The Fear of Borrowing Money

Wouldn’t it be great to pay cash for everything, including your home? Few can.  Sometimes, it makes sense to borrow money.  But, over-borrowing and too much credit is quite common. 

A credit card is used over 600 times every second of the day; over 36,000 times a minute; over 2 million times an hour; and over 52 million times a day.  The average household owing in excess of $9,200 in credit card debt.  What’s yours?

If you are contemplating, or already have, borrowing money for a large item— a home or an education loan—increases your pay back amount by 10%.  Why?  Simply this—you will reduce the time your loan payoff paid by approximately one-third.  That means you save big dollars and limit the time you “owe” someone. 

In determining whether you should borrow or not, ask yourself if you need the item or do you want it.  If you want it and can’t (or aren’t sure) you can pay off the amount over the designated time, don’t buy it. 

Over the next several weeks, I’ll continue to post the top fear factors for today … to overcome your fear, and get back on track, get your copy of Money Smarts for Turbulent Times by Judith Briles–available in paper and ebook format.

Money Fears … #6 The Fear of Creating and Sticking to a Plan

 

#6 The Fear of Creating and Sticking to a Plan

Twenty-five percent of the American population believes that they will fund their retirement years by winning the Lottery!  Fat chance. 

Your best bet is to create a plan.  Put it in writing for easier tracking.  Financial plans are guide tools that start you on a path that will lead you to your stated money goals.  They are not, though, set in granite.  Times and circumstances change.  So do investments and opportunities.  That means that you don’t create and stick it in the drawer.  Your plan should be reviewed annually.  It should be flexible.  Life changes. You change.

Over the next several weeks, I’ll continue to post the top fear factors for today … to overcome your fear, and get back on track, get your copy of Money Smarts for Turbulent Times by Judith Briles–available in paper and ebook format.

Money Fear #1 – The Fear of Being Broke

#1 … The Fear of Being Broke

At the top of the list is the fear of being broke, “Will I have enough to buy the foods I want, the medications I need or be able to pay for the things I want to do when I stop working?”

Years ago, a client had asked me if I would take the time to go visit his mother.  He told me that she had some investments, lived mostly off the dividends, interest and her monthly Social Security.  He asked that I just check in with to see if she was getting a decent return on her portfolio. 

I made the appointment and spent a pleasant two hours getting to know Martha.  She was in her early sixties at the time and healthy. She believed that she was a good steward of her money.  With financial data filled out, I promised to get back to her within the week with an update on several stocks and suggestions for any changes to her portfolio.  As I got up to leave, she said, “What about my stash?” 

She pointed the corner of her living room.  All I saw was a big green, over-stuffed chair.  “My stash . . . in the chair. . . and drapes.” 

My new client had stashed in excess of $30,000 over the years in her over stuffed green chair with matching draperies.  She had lived through the Depression—never again would she, or her family, be without food if bad times hit again.  It took me over a year to convince her to move her moneys to a money market fund that would earn her interest. 

Did she move the entire amount?  Nope, she insisted on a stash of $5,000 in the house, money that she could tap into for “whatever.”

The reality is that whether you are rich, poor, or in-between, the person that you are going to have to depend the most on to keep you from the poorhouse is you and your smarts.

Over the next several weeks, I’ll be posting the top fear factors for today … to overcome your fear, and get back on track, get your copy of Money Smarts for Turbulent Times by Judith Briles–available in paper and ebook format.