Overcoming Your Budget and Money Fears

Does money scare you?

No. It’s because we love it so much and everything that it can offer us. With money, we can buy nice things that make us happy whatever that may be. No matter who we are or where we come from, the truth is, we all have to deal with money and finances. It may seem like a daunting task at first but once you understand it much better, it won’t be anymore. The real question that can be asked here is, do you avoid taking a hard look at your finances because it seems too complicated? If that’s a yes, don’t worry! Everyone can agree that this is the real problem when it comes to money. It’s all about the perception, attitude, or habits towards money that makes or breaks it for us. Many people are afraid of reviewing their expenditures because it might come as a real shock for them. We can’t blame them especially if they spend money recklessly. Some of us try to avoid managing our finances altogether and don’t even want to think about money because it can become extremely stressful. Before you move on to the next, here are some reasons why we need to tackle these budget and money fears right at this moment.

Money Fear #1: Frugal Lifestyle

Your biggest money fear could be having a frugal lifestyle. Thanks to reality shows, you might suddenly picture having to sacrifice every single thing that makes you happy or live on coupons for the rest of your life. This could be true for some but not all. It is a very crippling fear that can prevent people from enjoying their lives and reaching their full potential. Because of this, you might tend to overspend as if it were your last day on earth. The last thing on your mind is to adopt a frugal or minimalist lifestyle. However, that doesn’t have to be the case unless the lifestyle appeals to you. It will be much easier if all you have to do is educate yourself about money and finances. The more you know about money, the less afraid you will be of it. The more you know about money, the better control you will have over it. Never allow money to have control over you.

It simply means that you have to be aware and careful when it comes to spending. You have to be naturally conscious in all of your purchases. This will also mean cutting down on certain things that contribute to unnecessary expenses. Having a clear-cut budget will easily solve this problem. Additionally, sticking to one will prevent you from overspending. Living within a budget will still give you enough freedom to enjoy the things that you want. It can still be done without going overboard. You can still treat yourself to your favorite restaurant, let’s say, once a week or every 2 weeks. What’s unreasonable is eating out three times a day every single day of the week because that will eat away a significant portion of your income that could have been used somewhere else wisely.

Another way to overcome this money fear is to open an emergency fund or savings account that you can fall back on in case of financial hardship. Having any of these two (even better, both!) will give you a sense of comfort and peace of mind. Living in extreme frugality may not be the kind of lifestyle you want and with a budget, you don’t have to.

Money Fear #2: Overwhelmed By Debt

When you think about it, debts are ironic. These are the things that can bring us a step closer to our dreams like a new car or a new house. However, it is the very same thing that ties us down to a mortgage for a certain time. Mortgages make up a significant amount of fixed expenses and eat away at our income. If you are like most people who have debts, you may have had your share of financial problems. We can understand that you are looking for a way to get out of debt. Being overwhelmed by debt can be a very scary place to be. You may experience a helpless feeling that you will never be able to pay off all of your debts. This is a normal feeling, but it is important to understand that there are ways to overcome this feeling and get out of debt.

Most importantly, you need to change your mindset and perspective. Having feelings of helplessness and depression will not alleviate the situation. Divert these feelings to other distractions by doing activities that you love. To overcome debt, you need to build confidence. Also, you need to be determined and disciplined to pay off debts in an organized and efficient manner. This is the main reason why we need and stick to a budget.

Take the time to sit down. Assess and review your current financial situation and see which ones are the big debt producers (most of the time, it’s mortgages and loans). If one of your long-term financial goals is to pay them off, construct a budget that revolves around your current financial situation. As time passes by, don’t be afraid to revise your budgets to better suit your needs.

Money Fear #3: Unexpected Major Expenses

Unemployment and sickness could be considered major expenses. This, as long as a list of others, could be your ultimate money fear. Unexpected major expenses like emergencies can ruin the plans of achieving financial stability and can wipe out your entire savings account in one single blow. The best solution to this problem is to build up a separate emergency fund. The first step to overcoming your fear of unexpected major expenses is to build up an emergency fund. This will give you a cushion to fall back on in case you ever have an unexpected major expense.

Additionally, making a budget will help overcome this fear of unexpected major expenses. You can keep an overview of how money is being spent and make the necessary cutbacks in certain areas. That way, you don’t have to be fearful of these major expenses and you can keep on living your life as long as you have an emergency fund set aside. Above all, you need to stay disciplined with your spending and saving habits because it could make or break your future financial situation. Ideally, you should have 3–6 months of living expenses. This should give you enough time to recover and save again for an emergency fund the next time it happens.

Money Fear #4: Anxious Spending

Last but not least, you might be afraid of money for several reasons. One could be having the fear of not having enough money to pay bills. Another could be the thought of losing money. All of these thoughts can lead to anxiety and in extreme cases, depression. First, it would be a good idea to identify what triggers are behind these fears. Try to understand why they are happening in the first place. Once you understand that most of these fears are really in your head, it will be easier to move on.

Next, analyze your spending patterns. Understand what your behavior is like when it comes to spending money. Are you the kind of person who spends money when stressed or feeling under pressure? Or is it the opposite of not spending money at all? Either of these two, are unhealthy habits. By identifying these patterns, you will need to find ways to change these spending habits.

The only way these fears would stop haunting you is to have a rock-solid plan. That next step would be to start having a budget. Aside from all the responsibilities that you have, don’t forget to set a portion for you to enjoy whatever that may be. This way you can have a healthy balance of both worlds and live out your life without anxiety. Everyone deserves that.

We hope this article will help clear up any fears that you are experiencing when it comes to finances. The start to get over any budgeting and money fears is to identify them as early as possible. The secret is to start small so that you can build confidence over time. Taking small steps at a time that are comfortable won’t overwhelm you. Always keep in mind to focus on your biggest goal. It is to make sure that you are in charge of your life. Most importantly, a life that produces a healthy financial situation. Do not try to accomplish everything at once otherwise it will become too overwhelming. After all, money matters cannot be accomplished overnight. Instead, try to focus all your efforts on one thing at a time. Once you’ve accomplished something, that’s the time to move on to the next goal. We truly hope you can overcome all of your fears when it comes to budgeting money.

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