Financial phobias start in the brain, but they can manifest in the form of physical symptoms. One study from the University of Cambridge found almost half of financial phobia sufferers “experience a racing heart at the mere prospect of dealing with their money.” Additionally, 15 percent “feel frozen and immobilized” while 12 percent “feel ill.”
If you’re dealing with financial problems in your business that seem overwhelming to you, you could be suffering from one or more financial phobias. Read on to find out more.
It’s quite common for people to experience anxiety surrounding their finances. This is especially true for people with debt. The more their debt grows, the harder it becomes for these people to effectively address it. Unfortunately, financial phobias can lessen the likelihood of achieving debt relief. Here are a few reasons illustrating why.
Reason #1: Financial Phobias Prevent People from Learning
It can be fun to research a topic you feel passionate about. This is true whether you love sports, vehicles, history, animals, food preparation or interior design. But people tend to avoid learning more about topics that make them feel upset or uncomfortable.
Question: What is financial literacy? Answer: “The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.” Achieving a state of financial literacy requires learning, asking questions and putting what you learn into real-world action.
People who fear addressing their financial situation are less likely to reap the benefits of working toward financial literacy. This cycle makes it easier to fall further and further behind.
Reason #2: Important Insights Start to Slip Through the Cracks
Many of us set bills in a pile on the edge of the counter or on top of our desks when we receive them. But having a financial phobia often means bills tend to sit there… and sit there… until they’re overdue. The same goes for checking on investments, reading credit card terms and monitoring savings accounts.
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Operating this way means important financial insights and deadlines start to slip through the cracks. This can easily put consumers on the path to debt. At the very least it will spike their stress levels every time they open the mailbox or check their email.
Reason #3: People Are Afraid to Ask for Help
People with financial phobias tend to be afraid to ask for help. And understandably so. It’s difficult to admit you could use some assistance when it comes to money. But there are judgement-free options available for people in a wide range of circumstances.
For example, Freedom Debt Relief debt help provides a free evaluation. They also make certified debt consultants available to discuss your situation. Conducting this kind of research is the first step to choosing a workable solution that suits your needs, like debt settlement or consolidation. Most of the time, the hardest part is working up the courage to pick up the phone or click to get started. Financial fears tend to dissipate once people get on a path toward resolution.
Reason #4: Existing Problems Compound Without Interference
Closing your eyes won’t magically make your financial challenges disappear. Financial health is not a “set it and forget it” proposition. It requires supervision and active decision-making. Let’s say you’re currently paying the minimum balance on each of your credit cards, between 1 and 3 percent. While you may not be racking up late fees, you are paying a lot in interest. It will also take you a long time to pay back your debts, as you’re essentially deferring the responsibility each month.
The bottom line is that financial issues tend to multiply without interference. It’s important to manage your financial phobias so you can play an active role in your own financial health. Make sure you’re checking your accounts regularly, updating your budget and considering your options a few times per year. Who knows? You just might discover there’s a better way to manage your money.