Overcoming Your Financial Fears

It is believed that we should only worry about things that we can control and put anxieties aside that we cannot. This idea holds true when it comes to investing and money. However, we have fears that cannot be controlled or have a little likelihood of happening. Dealing with a certain fear that can be controlled can lessen some of the anxiety.


One of the most common financial fears that people have is the crash of the stock market. The Nasdaq crash may still haunt some of us, but one thing that we should be worried about is getting average returns of our investment. Most of us forget the buy low, sell high principle. When the rates in the markets decrease and the prices are low, some investors get scared that they may lose out on potential gains. They make impulsive decisions and think that a small return is better than none without thinking about the potential upside when the stock price increases again.


Identity theft is also one of the fears of Americans. When this happens, it can cause havoc in your personal finances. Being a victim of this can surely put your credit rating on the line and can damage credit standing. Nevertheless, studies show that there are thirteen million credit inaccuracies annually on credit reports. These mistakes range from minor to false inaccuracy. Always be careful when giving out your Social Security Number and make sure that you check your credit report every year.


Many Americans fear a failing economy. With the rise of natural disasters, terrorism and high energy prices you cannot help but think that maybe another Great Depression will occur. By investing in a wide variety of investment vehicles, you can help increase your chances that if one world economy goes down, you are gaining in another one that is flourishing.