Get Financially Fit
Scared of money? 6 common financial fears and how to conquer them
Oct 26, 2020
If aliens and ghosts haven’t frightened you enough this Halloween, let’s think about something a little more spine-chilling. Something that inspires fear in the majority of the population, no matter their tolerance level for horror flicks and trick or treaters. Let’s think about our finances. And let’s confront these common financial fears, together.
What money worries are keeping you up at night?
In a world where we need money to put a roof over our heads and feed ourselves, as well as to get on and achieve some of our biggest life goals — it’s understandable that finances are something that we constantly worry about. No money = no home, no food, no goals. It’s a terrifying reality that our lives can unravel pretty quickly without financial stability.
You are not alone
No wonder then that money is the leading cause of stress for young adults in the UK. And it doesn’t help that so few of us ever receive a financial education. We were never given the tools or know-how to deal with this. But it doesn’t have to be that way.
Money doesn’t have to be scary. We can learn how to master our money. And we can go on to build brighter financial futures.
What if you never had to worry about money again?
To anyone who has experienced sleepless nights over their finances, it’s an irresistible question. And the good news is it’s achievable! Yes, I believe with a little know-how most financial fears can be managed, and the worry relieved. Let’s have a look at 6 common financial worries, and how to conquer them.
6 common money worries and how to conquer them:
1. Finances are mystifying
This fear is really the classic ‘fear of the unknown’ dressed up in your finances. When you feel clueless about how your finances work, you feel powerless to do anything about it — because you don’t know how. And this leads to feeling out of control, which when it comes to something as important as your financial health, naturally creates a lot of worry.
Conquer your money worries by: Knowing that you can work this out. We can help you build confidence around your finances and learn how to master your money. There are loads of articles on our blog to get you started, and we have a newsletter if you’d like to receive money tips straight to your inbox. Further, all LOQBOX customers receive our LOQBOX Learn email series to help them build financial literacy.
2. Credit rejection
You want to apply for credit like a mortgage, a loan or a credit card — or you think you might want to one day soon — but you’re terrified you’ll be rejected. Perhaps this delays your plans. You don’t know what your credit score is, and perhaps you’re afraid to look.
Beat your money worries by: Facing the facts. Check your credit history now.
It’s free to do so and you can do it via these links:
- ClearScore (uses Equifax data)*
- Credit Club (uses Experian data)
- Credit Monitor (uses TransUnion data)
* Just to be super transparent if you sign up and follow this link although it’s free for you, LOQBOX may get a small referral fee from ClearScore. This helps us to continue to improve our service for our customers and keep LOQBOX free.
Once you know what you’re dealing with, you can make a plan. If you need to repair your credit history — that’s okay. It can be done. And yes, you can do it. LOQBOX makes it easy. You can find out more about LOQBOX and how it works here.
3. Rent trap
Do you fear never being able to own your own home? Terrified of being stuck in the rent trap? Getting on the property ladder is one of the toughest financial and life goals that there is. Saving a lump sum to put down on deposit, and building your financial health so that you can get a mortgage, isn’t easy.
Reduce your money worries by:Starting small. Every journey begins with a single step, no matter the distance. If you haven’t already started a savings habit, start one. The trick is to save small amounts, and regularly. And over time this will become easier. You also need to build your credit history to increase your likelihood of being accepted for a mortgage. Handily, LOQBOX helps you build your credit history, while you save, for free. What’s not to like? Find out more here.
4. No money
A common financial fear is a hypothetical question: What if I run out of money? And I can’t pay my bills? And then I… As you can see this one tends to spiral out of control rapidly as you imagine a string of negative consequences and fall further down the rabbit hole.
Get over your money worries by: Building your emergency fund. A fifth of workers in the UK had no emergency savings before the Covid-19 lockdown. But putting some money aside to cover us financially should something unexpected happen helps us to build resilience. If something does happen, we have a fallback plan. This buys us some time to find a solution. And gives us confidence in our ability to get through things. Aim to set aside enough to cover at least three months worth of bills.
5. No job
This point is similar to the above, but slightly different. For instance, some people may regard losing their job, not as a total loss of money to the point of financial destruction. But instead, as one in which they see themselves faced with unexpectedly having to enter a job market that no longer values their skills when they’re forced to find a new role. They may have lost their dream job, and now are not very happy with the options in front of them. They worry about earning less than they currently are, and potentially losing status too.
Defeat your money worries by: Embracing life long learning. Keep your skills up to date by reading and studying a little in your spare time. Take online courses that interest you. Research what skills are in high demand. That way should anything happen with your job, you will still be an attractive candidate to recruiters were you to have to job hunt.
6. Economic uncertainty
A big one for the year 2020 is the fear of economic uncertainty. With both Covid-19 and Brexit to contend with, we’re all feeling it. What will happen to jobs? Will there be mass redundancies? Will the property market collapse? When will there be a vaccine? Will things go back to the way they were? We don’t know right now.
Thwart your money worries by: Accepting uncertainty. It’s not easy I know, but the only option we have right now is to move forward and make the most of whatever comes our way. Accept that we don’t know what’s going to happen. Nobody does. And that’s okay. Unlike the other fears we’ve discussed, this one isn’t about making plans and being proactive. It’s about letting go. This makes change easier when it comes.
You can do it! Financial knowledge is financial power
Remember you’re not alone in feeling this way. If you’d like some companionship and guidance on your journey towards conquering your money worries, and building your financial fitness, join our community. We’re on Facebook and Instagram, and would love to see you there.
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