3 Financial fears – The ways to confront and conquer them in this Halloween

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By: tiarajoseph11
on 27th Oct,2015

This Halloween know your worst financial fears and the ways to conquer them.
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In our childhood days, we were supposed to freak out from the ghosts, monsters, goblins, and vampires lurking under the bed. But, now as we are grown ups, monsters, aliens, ghosts don't scare us anymore like before. Being an adult, we’re much more afraid of our messy finances. In this Halloween, instead of covering your heads, unplug your ears and clean up the cobwebs to challenge a few of those scary financial aspects directly. They're not as much scary as you might think.

Here are some easy ways to confront your financial fears. Check them out to protect yourself from being a victim of massive financial fears:

1. Budgeting

Proper budgeting is one of the biggest financial fears that many people are afraid off. Some people think planning a budget is a complex matter and nothing but depriving yourself of the enjoyment of life. But actually, budgeting helps you to figure out your actual limits and gives you confidence for spending wisely. Pushing you towards your financial goals is the main purpose of budgeting.

Now the question is how to face this fear of yours? Very simple, try the easier way first. Don't try to prepare a monthly budget or a yearly budget. Instead, plan for weekly or daily budgeting. This means you’ve to move forward systematically to face your fear. Do this for a month or two, then once you get the idea of what's going on, move towards planning a monthly budget. By this way, you'll learn how to manage your finances properly and also you'll be able to drive off your fear away.

2. Usage of a Credit

It is a common scenario today that many people are very much afraid of using their credit cards. While many individuals go overboard and accumulate huge amount as credit card debt, there are some others who deliberately avoid using the credit card at all. Credit card companies assume a borrower's repayment capacity by verifying his past payment history and credit report. If you don't have any credit history or payment reports, the credit companies will not have that much trust on you. Your application for any loan can be neglected or totally denied. So, if somehow in future you need urgent money to pay for your home, student loan, car loan, or any other bills, you might have to return empty-handed.

How to confront your fear of credit? Using a credit card is not at all risky if you use it wisely and purposefully. If you increase spending through your credit cards without thinking about the consequences, it’s for sure that you'll get yourself into a huge debt burden. It might happen that your future credit requests also get rejected.

Now what you have to do is review your credit score once a year at free of cost. You'll get a fair idea about your credibility. If you’re still getting scared to apply for a new card, it's the time to overcome that fear. Apply for a brand new card with a low credit limit, so that you can't spend much using that card. Start with limited usage for a couple of months, like buying veggies from the grocery store, or using it to fill up gas etc. Pay your dues before time every month, and next, use it to shop for big-ticket items. By this way, you can start controlling your spending habits and keeping your budget within your limits. Eventually, you'll be able to handle multi-credit cards at once without overspending and being default on your dues.

3. Bills

One of the main financial fears is the fear of bills. When any mail arrives at our doorstep, you feel a tinge of fear. We always hate to see any hidden charges showing in our bank statement.

It is very much important for you to check your essential monetary statements like bank statement or credit card statements. Make sure the amount stated in the bills and the statements are accurate. Notify the bank and your credit card company if you find any error in those reports and in their policies.

So, take your steps one by one. Select one bill at a time and go through the particulars. Don't stack up unpaid bills, you need to pay them as soon as possible. You can schedule your monthly payments by setting up an automated bill pay system through your bank. For variable expenses like cell phone bill, credit card bill, etc., you’ve to manage it wisely and manually.

To overcome your fears, you need to face them directly. Think positively and enjoy this Halloween all the spooky knocking at your door saying “trick-or-treat.”

Read on: Money management - 6 Financial steps for beginner to live by

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