The biggest financial fears – how do we combat them?

Are money worries keeping you up at night? If so, you’re not alone…and don’t forget…if incomes increase, financial fears certainly don’t decrease. When it comes to finances, it seems Americans are the most worried- a new survey by GoBankingRates.

As we relate a lot to the news from across the Ocean this time a study caught my attention.

Money is the most important thing on people’s minds. According to the survey of 5,003 US adults, 26% say they think about money more than anything else. Respondents highlighted everything from identity theft to job loss, but not everyone was equally concerned about the same things.

When given a list of seven fears to choose from, men indicated they were more worried than women about never being able to retire, being unemployed, or losing everything due to a bad investment. Women insisted more on the fear of living from one month to the next and not getting out of debt. Young people had more debt anxiety, while seniors were worried about identity theft.

Well…and how are things in Romania? Romanians seem to be worried about debts and mortgages, but also about retirement. How’s that saying? “Will we ever get the pension/retirement”?!

“People think permanently about money. They become naturally a big worry both when they are not enough and when they are too much,” said Cameron Huddleston, a columnist who writes about life and money.

Most people find it difficult to keep and stick to a budget. It can also be difficult to plan for retirement or take steps to get your finances under control.

Worrying that home ownership is not always within their reach. Male- heads of families, but also single women are worried that they can never afford a place of their own. Is this your biggest financial fear also?

Aggressively saving for your down payment is essential if you hope to eventually buy a home. Equally important are paying off your debt and working to keep your credit score high.

Cutting expenses and monetizing hobbies can help.

It is also advisable to make sure that the property is the one that is right for us and not just a checkmark on the general financial list. We need to get the house we can afford, not the house that costs the maximum loan we can get. The rate at the house should not exceed 20 to a maximum of 25% of the personal income.

“The decision to own versus rent is as much a lifestyle decision as it is an economic decision,” says Hollis Greenlaw, CEO of United Development Funding. Realizing that the purchase isn’t right for you right now can help that fear go away.

Investing in stocks can be scary, especially when the market is choppy, as it has been lately. 8% of American men fear the possibility of losing everything they have invested.

Educating yourself about how the stock market works will make investing less scary. Diversifying your portfolio, rebalancing as needed, paying attention to costs, and focusing on YOUR GOALS (not market fluctuations and “financial/social noise”) help make investing a less stressful experience.

Men and women were equally worried about identity theft, especially in old age. There were enough worrying cases in Romania as well.
Identity theft is reportedly the biggest financial fear among adults over 65.

No matter your age, take steps to protect your identity both online and in real life. Check if your passwords are secure, be smart about how you use ATMs, and watch out for fees/surcharges that pop up out of the blue.

Being fired was the biggest concern in the minds of 17% of European respondents. More men than women were worried about losing their job. This is because they are most likely the main breadwinner for their family if they are married and have children.

Having a healthy emergency fund, keeping your skills up to date, maintaining a strong professional network, and even having a side income can help you bounce back faster after losing a job.
Many experts now recommend that everyone keep nine months to a year’s worth of money in an emergency account, and that money can be used in the event of a job loss.

Another universal fear when it comes to finances, regardless of gender or age, is never being able to pay off debt. Considering that in Romania we are talking about many mortgages and credit cards, and in America study and various mortgage debts, this is not a completely irrational fear.

Worrying about debt won’t make it go away, you need a good plan, a strategy. I am waiting for you to access 1 to 1 financial coaching sessions. Let’s do an action plan so that you can continue your life with joy and get out of debt.

Men, and women alike. Living from one-month payment to the other is the biggest fear among millennials. Surprisingly, it was also the most common concern among those overseas earning very high annual amounts of money. This is a sign that financial stress doesn’t necessarily evaporate as your income increases.

Poor budgeting and planning are the real cause of this fear, say financial specialists. Tracking your expenses and having a financial plan will help you get out of the trap and start building wealth.

People are worried about having to keep working until they die. Although those younger than 44 are less worried about retirement than those in their 50s and 60s.

Retirement worries may not arise until you reach your 50s. Wherever you are in the world you can keep them under control. Start thinking about your post-work life while you’re still young! Save in your 20s and 30s and you’re less likely to panic when you approach 65.

Let’s talk about your financial fears and find solutions to them!