Scared of Money? How to Overcome Your Money Fear

Good Morning 

How are you doing?

We all have an emotional home or what we call a “safe space”—a location where we feel most at ease and unchallenged to do things differently. We have all sorts of feelings with money—from fear to guilt, to shame and freedom. We have programmed our brains to feel certain emotions in response to financial situations. We often choose emotions that won't help us in a useful way since we make these decisions unknowingly.

One thing you must know is that your brain is not wired to make you happy—that's your responsibility. However, you can choose the emotions you wish to feel the most. And, because your unconscious beliefs control your emotions, you must first address your money beliefs.

Do you have a fear of money?

What are the words you mutter beneath your breath?

Rich people are greedy?

Even if I made 60 million naira per year, I wouldn’t spend that much on vacation.

Money is the root of all evil (well, it is the LOVE of money that is the root of all evil)?

Do you have one of these beliefs or one like it? As long as you have a negative mindset about being rich, your chances of achieving the wealth you desire are slim. This is because at an unconscious level, we all move toward the identity that we think is aspirational. As such, if you have a negative belief about money and you begin to have some monetary success, you will unconsciously sabotage your success to coincide with your deep-seated beliefs.

In this article, we share four financial fears that one can develop in childhood and which can persist into adulthood, as well as the most effective strategies for conquering them.

1. Fear of losing one’s job

This is a very common fear, especially with the ever-increasing unemployment rates. When parents lose their jobs, it can be a difficult time for the whole family, and children tend to carry this trauma into adulthood. 

This fear can hold people back in many ways, including keeping them in jobs they hate simply out of fear of losing their livelihood. Even when one's career is reasonably secure, many people worry about the potential of being out of work.

Strategy or Tips:

Instead of worrying, create a cushion against an unexpected job loss. Identify the reasons for your fear: technology change rendering your skillset obsolete? Increasing redundancies? Disagreements at work? 

Once identified, create a cushion, that is, start a side business, learn new skills, look for another job, etc. Also, you can start protecting yourself financially by prioritising an emergency fund, which will give you the confidence to bounce back if things go wrong.

1. Fear of not having enough money

If you grew up in a family that struggled to make ends meet, you might feel anxious about running out of money—even when you’ve achieved financial stability as an adult. Memories of how you could not afford to pay rent, or how you had to live on one meal per day, or empty bank accounts can leave a lasting mark.

Strategy or Tips:

If you find yourself seriously doubting your ability to reach your financial goals because something is not going as planned right now, this is mostly a mindset issue—a scarcity mindset to be specific. It can blind you from big-picture thinking and you may allow yourself to live at the mercy of others. For this, you may need professional advice or a financial therapist to help you deal with the scarcity mindset. Making positive confessions over your life can also save you from this mess.

1. Fear of being a burden at retirement

Most people have the fear of being a financial burden to their spouse, children or other family members at retirement. This concern is even heightened for someone who watched a parent or other relative manage a debilitating health issue that drained them financially.

Strategy or Tips:

If you have a family history of illness or you expect to have a lower income in retirement than your present earnings, saving a little extra towards your retirement will be a good catch. Alternatively, you can opt for life insurance or mutual benefits.

1. Fear of being stuck in debt

In recent times, we have received a number of questions or concerns about getting out of debt. The fear that one can never get out of debt can be debilitating. This often happens when one compares their earnings to what they owe. You can easily get into an endless cycle of debt where you take a debt to pay an existing one or have defaulted on some debt and the interest keeps growing that your earnings cannot pay back the amount you are owing.

Strategy or Tips:

You have to confront your fear because clarity always brings comfort when it comes to finances. Find out how much you’re owing and how long it will take to repay, then compare that with your estimated earnings. If after this honest assessment, there’s still a chance of default, then negotiate a debt restructuring deal that could include interest waivers, a grace period, a reduction in the interest rate, or a longer repayment period. 

However, if you are not in debt and still afraid of being stuck in a debt cycle, then educating yourself about good debt practices and preferably getting advice from a qualified financial advisor may put you at ease. You can send us a mail (info@themoneyafrica.com) to help you overcome your fears and plan your finances accordingly.

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