When we’re young, thoughts of ghosts and monsters under the bed are what keep us up at night. But as we grow older, our fears often change. For many adults, financial fears are what cause us to feel that sense of dread, anxiety or even doom.
In celebration of Halloween, let’s review six common financial fears adults have—and how to help mitigate them.
1. Fear of Job Loss
If you lost your income tomorrow, would you be able to afford your mortgage or rent and your other bills? Building up an emergency savings with at least three to six months’ worth of expenses can help give you peace of mind that you could stay afloat if you find yourself unexpectedly in between jobs.
2. Fear of the Economy
From inflation and interest rates to recession and market volatility, the economy instills many fears in people.
It’s important to keep in mind that these fears are out of your control. Instead, focus on what you can control, such as building an emergency fund, paying down debt, and diversifying your investments.
Also remember that while it’s important to stay informed, knee-jerk reactions to news about the economy typically aren’t smart. Don’t panic. Stay the course and focus on long-term financial goals.
Related: Prioritizing Investments in the Face of Economic Uncertainty and Inflation
3. Fear of Fraud
Logging in to your bank account to unexpectedly see a zero-dollar balance is the stuff of nightmares. Unfortunately, we live in a time where AI technology is making it easier than ever for scammers to steal your identity and your money.
To protect yourself against fraud, be cautious about sharing personal information, especially online or with unknown callers. Enable two-factor authentication and use strong, unique passwords. Monitor your bank and credit card statements for suspicious activity. Also avoid clicking on unfamiliar links.
4. Fear of Accidents, Injuries and Illness
Many people understandingly worry about what would happen if a disaster strikes, or if they became seriously injured or ill and unable to work. Products like supplemental health insurance, disability insurance, major medical insurance, and quality home and auto insurance can help protect you against these financial risks.
In addition, umbrella insurance is another product to consider as it can help protect you against third-party damages.
5. Fear of Running Out of Money in Retirement
With 31% of adults saying they aren’t sure if they will have enough saved for retirement, this is a common fear.
In addition to focusing on saving for retirement throughout your working years, you can also consider annuities. These products offer you a way to protect your retirement savings while providing an additional source of retirement income.
Long-term care insurance is another product to know about as it can help protect your savings if you ever need help with your care.
6. Fear of Death
Whether you’re worried about how your unexpected death would impact your loved ones, how your loved one’s death would impact you, or a combination of both scenarios, there are a couple things you can do to help assuage these fears.
- Life insurance offers a way to provide for your loved ones by paying them a sum of money that may help protect them from the financial impact of your passing.
- Estate planning is the process of deciding what happens to your money, property and belongings after you pass away, as well as who will handle your affairs. Making a will and setting up trusts are two estate planning tasks that will help ensure your wishes are followed and things are easier for your family.
Financial Fears: Final Thoughts
The good thing about fear is it can motivate you to take actions that may help you avoid negative outcomes. You can help safeguard your future by focusing on saving more, spending less, investing wisely, and purchasing the right insurance products. Working with a Bankers Life financial professional can also help give you confidence that you’re making smart financial decisions.
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For information and educational purposes only. Does not constitute investment advice or a recommendation.
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