There have been many studies done on what people’s greatest financial fear is. There are statics that can guide us in understanding what that fear is and how we can prevent and overcome that fear. As we all know, people are not alike and what one person’s fear is may not be another’s. Statics helps us see a trend and from this we can move forward to help alleviate the greatest fear for a great number of people. Because not everyone fits in the same mold not all fears are the same. Each person should communicate what their financial fears are when working with a money coach.
A study, done in 2016, by Northwestern Mutual’s Planning and Progress found that Americans are in a constant state of worry about their finances and financial well-being. What they found is that the number one fear for 38% was having an unplanned emergency. An unplanned emergency can be devastating causing the loss of financial savings, and a loss of income. for some even losing their home. This can cause a huge impact on families. No one wants to place families in jeopardy for increasing anxiety, stress and hardship when an unplanned emergency occurs.
Catastrophic Medical Illnesses
In the number two spot at in this same study 34% of the control group feared having a catastrophic medical illness. This is especially true for the bread winner in the family. This is understandable with the cost of health care today and how much is not covered by insurance. There are different plans available but very limited ones that would cover the enormous amount that can come from major illness or injuries. Being able to afford the cost of insurance alone or supplemental insurance can place a burden on a lot of families.
An example of one case was a traumatic brain injury happened with middle age gentleman. He had a daughter, new wife of two weeks that was unable to work, and a new mother-in-law that had to be cared for in the home. It didn’t take long before his insurance capped out, having to pay co-pays, and non-covered expenses. Because of the severity of the injury, he not only lost his income but his retirement savings, and home. There is a reason that this is in the number two spot of this study.
The study showed that 32% of the people feared the lack of funds to retire or outliving their retirement income. This is a very legitimate fear with the political changes that are taking place if you do not have the right plan in place you may be left to finding other means of surviving in a financially struggling economy.
Money coaches can help you plan for any of these top three fears. With good guidance and direction, you can conquer your fears and enjoy life to the fullest. It doesn’t matter what your age is or where you are at in life conquering financial fears can be achieved. This is true for any financial fears that you may have. Working together to meet your financial goals is what we are about.
What are some of your greatest financial fears? Leave them in the comment section below.