More than half of people are worried about making ends meet. 77% are worried about their financial future. Even if these figures are exaggerated, many of us still suffer from a fear of financial failure that can have its roots in either our parenting or in traumatic experiences from our past. In negative and subtle ways, our emotional histories shape our actions.
Researchers have identified a few of the most frequent phobias that can lead us to feel panicked, sick to our stomachs, or paralyzed when we need to act. Chrematophobia, or a morbid aversion to spending money, is one of the terms on the list. (Just contemplating it may cause an anxiety attack.)
Plutophobia refers to the fear of being wealthy because of the burdens it may impose or the damage it may do to one’s relationships. (Consider how lottery winners’ lives change after they move.) People with irrational fears of poverty (Peniaphobia) or failure (Amychophobia) may be unable to take even moderate risks in their lives. (Even just contemplating it can cause severe panic.)
These irrational fears can influence many of our financial decisions. People with loss aversion are more concerned with the potential negative outcomes than the positive ones. People’s tendency toward haste can lead them astray when it comes to investing. People may sell their investments at the worst possible time for their long-term financial security because of market panic.
No matter what we call them in the classroom, it can be challenging to recognize these irrational fears in ourselves.
So, what are some options for fixing this?
Determine what initially sparked your fear of money. Anxieties about money typically have their roots in the past, whether it was a time of financial instability or a childhood dearth of financial knowledge. The best way to overcome your fear is to get to the bottom of what’s triggering it in the first place.
To boost self-assurance and calm nerves, try visualizing successful outcomes. Imagine yourself adeptly handling your money and accomplishing all your financial objectives.
Despite our feelings sending us conflicting or unhelpful signals, we should consider selecting a course during a reasoned discussion and sticking to it. Our recommendation is to create a budget tailored specifically to your needs.
It’s normal to experience some setbacks when working through your financial anxiety. Be patient with yourself and remember to celebrate even the smallest victories. You can conquer your fear of money and secure a more secure financial future with diligence and initiative.
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