We all have things we fear. Some people are afraid of losing their loved ones. There are those with more unrealistic fears that tend to cripple them and prevent them from achieving more in life. But if there is another uncommon fear that people experience, it would be financial fear. What exactly does it mean to have financial fears? Also, how does this type of fear impact your life and decisions in life?
Fear is an inevitable emotion that humans experience. This is a psychological and physiological response of people when they are faced with threatening and stressful situations in life. There are different kinds of fears that we encounter throughout our life, but we are now focusing more on financial fear experienced by numerous Singaporeans today.
The following are among some information you may want to know about this type of fear and what it means for those who go through it. Also, the following are some of the reasons behind these fears that are linked with one’s financial state.
1. Fear of Unemployment
Your job gives you a sense of security. It is because of your job that you get to receive compensation for all your efforts. With a stable job, you have nothing to fear about not being able to pay your rent, buy good food, travel whenever you want to, and shop for items you need and want. The more stable your job is, the more secure you feel about every aspect of your life.
Unfortunately, unemployment is a phenomenon that impacts several people throughout the world. While there are some nations with a higher employment rate than others, the fact remains that it exists anywhere in the world you may be. With the fickle economy that we have, this leads to a narrowing of the jobs available to qualified individuals. Thus, competition is tougher, and this makes it more difficult for people to land a job even if they have the necessary credentials required by employers. The painful truth is that even college graduates find themselves struggling with finding and getting the job of their dreams even with a prestigious degree.
As for those who are currently employed, this does not make them immune from the possibility of losing their job in the future. In fact, there are those who are laid off a job even if they have been with the company for quite a number of years. Several reasons may be attributed to such unemployment cases including the company’s decision to streamline their employees, reduced profits in the business, and other factors that are purely in the discretion of the employers.
If you want to boost your chances of finding employment, one of the many ways to do this is by begin growing your professional connections using a social networking site devoted for this purpose. You may also seek the assistance of your friends and family members who may be willing to recommend you to their existing company, particularly if there is a need for a job position within your set of skills.
2. Fear of Catastrophic Loss
There are always surprises that life throws in just when we least expect it. With the unpredictability of life, there is no wonder that a major loss whether in the job or the business climb up the charts of people’s greatest financial fears. Your business may be going well right now, but things just happen, and losing everything you have established can be quite painful to accept. You may have heard about a family member, friend, or a stranger who posted on some social network about a big loss in the business. Often at this stage, banks are most unlikely willing to approve their loan application to tide over this tough period. The only alternative left would be taking up a short term business loan or even a low income personal loan from licensed money lenders Singapore. This might not seem like the best idea for some, but at least it is better than folding a business that you put so much time and effort in. It is not worth it at all, isn’t it?
Now, this does not make things easier for you in shrugging off the possibility of going through the exact same situation. Yes, there are things in life that you cannot avoid. But then again, some situations remain within your control – and you just have to focus more on preparing yourself when these come. Also, you may begin coming up with a plan that will make the impact of losing important things in your life less difficult to swallow.
Psychologists recommend that you place your focus and energy more on things that are within your control. Come up with an emergency fund that will make the loss not as painful or traumatic for you. This is the reason why it makes sense to have an emergency fund as this enables you to have a way to meet all your expenses when the time comes that there is no income coming in due to a loss in the business or unemployment. It also helps to review your current insurance policy coverage and be sure you have enough protection from catastrophic events and losses in your life.
3. Fear of Scammers
No one likes to get ripped off. You want to avoid every possible situation that a swindler or con artist will come up to you and take everything you’ve got. But at the same time, there are horror stories about businesses going through a major scam by a corporation or a group of individuals. There are also average people who encounter headphone scams and several other types of exploitation caused by fraudulent individuals.
But how can you spare yourself from this kind of problem?
The main thing is to be aware that such scamming issues exist. Unless you are knowledgeable about these situations, you will remain naive and oblivious of the fact that some people actually go through great lengths to scam unsuspecting individuals. Another thing you can do is by being well-informed and secure when it comes to your financial plan. Grow your savings and have realistic goals that will guide you towards building your savings. So, in case you are unable to shield yourself from swindlers, you can at least have a less traumatic experience because of a sufficient amount of money that may be used to help you get back on your feet.
4. Fear of Not Being Married
Whether for social, personal, or financial reasons, people fear of remaining as an old maid for the rest of their life. They worry about not meeting Mr. Right, which makes them fearful of how their future may turn out. In Singapore, some people date with the intention of marrying someday. But then again, it is not too easy as how people assume it would be to be in a serious relationship with someone and get married afterwards.
But there is nothing to fear in case life wills for you to remain single. You can diminish the fear by growing your emergency and retirement funds as early as now. So, if you have reached your old age and still unmarried, you can have a way to meet all your expenses even without the assistance of a life partner. In the end, it is all good because you can get on with life on your own without any worries.
5. Fear of Not Buying a House
Many people dream of having a house that they can call their own. There is something grounding and consoling about the fact that you have a base instead of floating around from one apartment to another. But sadly, it is never easy to buy a property in Singapore. The cost of houses can be very steep, so you may find yourself getting filled with anxiety because of the fear that your dream house may remain as a dream.
Fortunately, you can eliminate your fears by setting a plan on how much you should save at a particular length of time. Then, you can eventually invest in your dream property to make your aspirations come to reality. Just be sure to prepare for inflation and find a way to protect yourself from this by adjusting your budget accordingly to completely free yourself from this fear.