Intuition vs. Fear with Money
We all worry about not having enough money. You may worry about not being able to retire, not being able to provide for your family, or not being able to take care of necessary expenses. It is a fear that has been built in or learned because we have experienced a time where we did not have enough money to cover our needs. This is logical. But have you ever experienced a time where you know you should have taken a financial jump and didn’t out of fear? It is hard after a financial misstep to trust yourself with money again. Today, I’m going to be breaking down scenarios that you should let your intuition do the talking and situations where you should overcome your fear and go for it.
Overspending is rampant in the United States. Most of us tell ourselves that it is okay and that we will eventually make enough money to get out of debt. Overspending is one area where you should not trust your intuition and stick with fear. You should be scared of spending too much. If you consistently overspend you are not saving enough for retirement and are proving to yourself that you are unable to handle money correctly. In the end, you are doing yourself a disservice. Get to the bottom of your spending. Is it emotional spending? Do you just not care enough to look at a budget? Does it stress you out? Do you not know how to reign it in? Figure out why you are overspending then address it with help if needed. There are financial advisors and consultants for a reason - we really do help! If you want to go on your own, the library is a great, free tool and there are plenty of articles on how to cut your spending here at Money Therapy.
Investing is just the opposite of overspending, not done nearly enough in the United States due to fear. Investing is one area where you should not let fear trick you! You may tell yourself that you can’t afford to open a retirement account and you need to focus on more pressing issues like getting out debt or worrying about daily expenses. However, if you never invest you will never be able to retire. The truth is that we are living longer lives and with that longevity comes cost. You have to invest if you ever want to stop working. So, instead of having the fear you won’t be able to pay off debt, start fearing the frightening thought of working for the rest of your life.
Starting a Business
Starting a business is scary! There are so many things that could go right and even more things that could go wrong. When it comes to starting a business, do not let your intuition guide you - let fear do the talking. So many times I see fun side businesses opened with the idea that it is just that, a side business. However, too many times individuals think that this side business can sustain their everyday life and dream of quitting their job. That is just not practical unless you put some real time into thinking about your strategy, costs, sales, and operation. It is much more fun to sell something on the side than it is to do it full-time. I want you to love entrepreneurship, but if it isn't given the proper thought and execution, it will become something you hate. Average startup costs in the United States hover around $30,000, and unless you are ready to shelter unforeseen expenses, go without healthcare, and say goodbye to your retirement, it may not be something worth doing. You have to be honest with yourself about your skills, how much the business could make, and what type of life you want to lead. I want you to start a business! But I also want you to understand the cost of making it successful.
Loaning Friends Money
Loaning money, a dreaded topic. If you are one of the few that has extra cash and your friends know about it, there will come a time where someone asks you for money. It is inevitable. Now, I am not here to tell you not to do it, but I am here to tell you that your intuition is right about these situations 99% of the time. If you do loan money, think of it is a gift. Most of the time, your friend will not repay you, and you will never see those funds again. This is not some of the time, this is most of the time. Do not be naive and think that your friendship will be different or this is a different scenario. Unless you are okay with parting with your money forever, do not loan your friends money. If you are okay with not seeing that money again then by all means, write the check. Too many times I see this situation break up families, ruin relationships, and leave individuals with sleepless nights. Remember, before you loan money, are you okay with never seeing it again?
Signing Up with a Financial Advisor
When signing up with a financial advisor, if it doesn’t feel right, it probably isn’t. This is something you should do with your gut. Do you think they are lying to you? Do you not know enough information to make a decision? Are they cagey with telling you how they are investing your money? There is a reason that most widows change their financial advisor when their husband passes! Deciding to sign up with a financial advisor is a huge step and not one that should be taken lightly. Trust should be the foundation of your relationship with your financial advisor and if that isn't the case, find a new one. There are thousands to choose from, and I’m sure every one of them would be happy to invest your money!
So, that covers it. These are 5 situations where you should know the difference between fear and your intuition. Is there something I missed? Comment below!