Women’s Biggest Fear of Money
In researching the psychology of money, I keep reading about the “fear of money”. I thought this Forbes article did a good job of summarizing the 6 common financial fears, but fear number 4 resonated with me the most, as a financial coach who has worked with many women preparing to retire.
Financial Fear No. 4: I’m destined to be a “bag lady.” A 2013 study found that almost half of American women are afraid of becoming bag ladies, despite the fact that 60% are primary breadwinners.
A lot of this fear is based in real financial pressures that are unique to women: They earn lower salaries than men, they need more in retirement savings to sustain a longer lifespan, and they often have to exit the workforce for years to raise kids.
How to Conquer It: This is really a fear about losing financial independence, and that really boils down to knowing how much you’re making versus how much you’re spending. So if you don’t already have a budget in place, you may need to do some math ASAP to figure out if you’re living within your means—and in a sustainable way.
The author also points out that many people tend to turn a blind eye to the real things that can derail them, financially speaking. They might, for instance, fixate on a low 401(k) balance as the source of their money stress, while ignoring the fact that they spend $500 on eating out each month. “It’s often not your retirement funding that’s the problem,” she says. “It’s the fact that you’ve got this huge debt because you didn’t correctly identify the most realistic threat to your financial well-being—your own behavior.”
As I stress in my coaching, understanding your relationship with money, and having your money spending plan in place is crucial to peace of mind when it comes to your finances and preparing for retirement.
If you want to read the entire article and all 6 financial fears of money, here’s the website: www.forbes.com/sites/learnvest/2014/10/02/6-common-financial-fears-and-how-to-conquer-them/
Linda Lingo, Financial Coach
Empowering Women to Embrace Their Wealth