Conquering Your Financial Fears
For a lot of people, finances are a scary thing. The complicated nature of saving, investing, and planning, along with the fear of not having enough money to survive, often causes people to make bad financial decisions. But it doesn’t have to be that way. Here are a few of the most common financial fears along with a few suggestions on how to deal with them,
Fear of Household Budget
First, there’s a fear of a household budget. While a lot of people believe that it’s a very good idea to have one, many of those same folks never bother to put one in place. You’re afraid that after crunching the numbers, you’ll wind up either depriving yourself of having a good life, or you’ll find that you’re slowly sink into a mess you can’t recover from. But the reality is, making a budget is really not that bad. If you have to, start small – try setting a budget for just a few days or maybe a week. See what works, and what doesn’t, and over time you’ll be able to make adjustments that’ll keep you in control of your finances.
The Fear of Unexpected Financial Emergencies
The next fear people have is the fear of unexpected financial emergencies. Well, life is full of those kinds of unexpected surprises… A big car repair, or a medical bill, or the loss of income from unemployment – any of these things could happen at any time. An effective way to knock out this fear is to have some emergency funds set aside – maybe anywhere from three to six months’ worth of expenses, or more. And it doesn’t have to necessarily be cash, either. For homeowners, sometimes an open home equity line can serve as a source of emergency funds, or for others, maybe a credit card or two could be a last resort. Just make sure you don’t let the balance linger too long. Either way you do it, it’s always a good idea to have access to quick money, just in case you need it. This cushion can go a long way toward removing much of that fear of financial emergencies.
The Fear of Running Out of Money in Retirement
And finally, there’s the fear of running out of money in retirement. This is a big one for most retirees. According to a survey by Allianz, more than 6 out of 10 baby boomers feared running of money before they died, even more than death itself! You’ve worked your whole life to save what you can, but will it be enough to last you 30 years or more? This is a situation where you might find that having some kind of guaranteed income in retirement – income that’s designed to last as long as you or your spouse is alive – can take a big load off your mind. If that guaranteed income can ensure that your basic needs are provided for you throughout your lifetime, it can take a lot of pressure off of your portfolio. Your financial advisor can help you determine if your income needs can potentially last as long as you do.
Yes, finances can be complicated and scary. But don’t let your fears guide you down the wrong path. The financial advisors at Lucia Capital Group are here to help you every step of the way. How can we help you the most? Just give us a call!
The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances.
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.
No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.
Securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial. Securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group.