Top 5 Financial Fears Of Consumers And How To Deal With Them

Top 5 Financial Fears Of Consumers And How To Deal With ThemThere are a number of financial fears people face on a daily basis. They all differ in degree and scope but they are problems nonetheless. The smaller ones could add up over time and pose a big problem. On the other hand, bigger and more complex challenges are felt a lot more sooner. Having to go through these makes life a lot more challenging.

With this, there are a number of financial situations that worry that seems to worry a lot of people. This means that some financial fears are shared by a lot of consumers across the board. Here are some of them and some tips on what you can do if you ever find yourself in these situations.

A comfortable retirement

Retirement is an inevitable stage in your life and there is nothing much you can do to get out of it. The time will come when you would have to stop working. Oftentimes, it would have to do with your age. The Balance shares that the average retirement age for Americans is 63 years of age. This means that a lot of people stop working as they start to progress through their 60s.

However, this is not always the case because there are a lot of older consumers who are still working. This is because of one of the financial fears people face – do they have enough for a comfortable retirement? This is because your decision to retire has a lot to do with the amount that you have saved up for it. A lot of consumers fear they do not have enough to get them through their golden years.

For some, they are forced to play catch-up with their retirement fund just to retire on time. For others, they just work until they can. To address this concern, you need to plan ahead of time. Be sure to have a concrete plan in place for your golden years. If you have to, sit down with a financial adviser so you get a saving blueprint to follow. With that, save as early and as consistently as possible to help you reach that goal.

Here is a short clip from Fox Business as they talk about retirement figures in the country:

Managing a tight household budget

This is another one of the most common financial fears people have. Running on a shoestring budget magnifies every wrong financial move. This is because you barely have any wiggle room in your finances to recover from a blunder. If you miss a payment, you will feel the sting of those fees and penalties that will come in next month. Not to mention how it will affect your credit score when that missed payment is reflected in your report.

One thing to do when you are in this predicament is to have a very detailed budget and schedule when it comes to your financial obligations. You can make use of traditional pen and paper to write down your payment due dates. You can also use your smartphone and key in the due dates in your calendar so you would not forget. There are also mobile or web applications you can use to help you manage your payment schedule.

Juggling multiple debt obligations

One of the biggest financial challenges people go through is having to manage multiple payments all at the same time. Sometimes, you don’t even notice that you already racked up a number of credit cards you use on a regular basis. Gallup shared that on an average, Americans carry about 3.4 credit cards with them. There is nothing wrong with having multiple cards as long as you can manage the payments.

The problem with this is that the more payments you have to attend to, the bigger the chances that you might overlook some payments. As mentioned earlier, it is a good idea to have a centralized calendar to remind you of payment schedules. However, you might be overwhelmed with the schedule if you have a lot of dates to keep in mind.

As it is one of the financial fears people have, one of the best things to do when you have multiple debt obligations is debt consolidation. With this repayment program, you are able to combine your payments under one convenient account. This means that you just have to worry about one single payment and one due date for your debt accounts.

Losing a job

When you are given the pink slip at work, it will be one of the most challenging times in your life. As such, this is one of the worst financial fears consumers think about on a constant basis. CNBC even shared in one article that there was a point in 2016 when companies announced job cuts for almost 500,000 workers.

Once you are let go at work, every aspect of your life will be affected starting from your finances. Your regular source of income will be gone. You would need to look for a new one so you can continue covering for your expenses. It is also possible that you start to question your ability and skill in your industry.

This is where your reserve funds come in handy. Once you lose your job, you would rely on your emergency fund to help you pay for your monthly expenses while you look for a new job. The bigger your reserves are, the longer you have to look for a new job. One tip is to try and lower down your expenses during this time to stretch your money for a longer period of time.

Getting the children all set up for the future

One of the reasons why you might want to help your children with college expenses is because you know first hand how hard it is. There is a big chance that it took you decades to pay off your own set of student loans. The cost of attendance when children decide to pursue higher education has been on an increase for the past few years

This has forced a lot of students to borrow and take on student loans just to pay for college and even for some post-graduate studies. As a result, they end up with a big debt over their shoulders as soon as they graduate from school. To make matters a little more challenging, this is one of those types of debt that is quite difficult to discharge.

One thing you can do to manage this financial anxiety surrounding your children’s educational future is to save up for it. One option you have is a 529 plan which is a tax-advantaged way of saving for your kid’s future. You can also look at some investments you can use when the time comes your children would need them for school. The bottomline is having a college fund to help them with the looming cost of college.

There are a lot of financial fears that people go through their lives. It is just a matter of sitting down and composing yourself so you can understand the situation. Only then will you be able to formulate a plan to help you address the problem. Life will always be full of challenges and you just have to deal with them in the right frame of mind.