What are your biggest financial fears? The things that could derail all of your progress toward financial freedom, wipe out your emergency savings or put you into debt all in one fell swoop?
For me, there are really only a few nagging issues that cause periodic bouts of worry.. unforeseen medical costs, family and extended unemployment.
- Medical Concerns: Does anyone ever have a sound understanding of how good their medical coverage is until they need it? In the past few years I have started using a health savings account (HSA) in conjunction with a high deductible insurance. Because I don’t frequently need to use my insurance, and because my company puts a lump sum contribution into my HSA… so far… knock on wood…it has served me well.
- Familial Responsibility: Family starts with an F for a reason, right?
As of late, my mom, is my biggest money anxiety. Last Spring she was diagnosed with Alzheimer’s. She has very little family living nearby, is afraid of losing independence, and is unwilling to accept help. Last Summer she told me she wanted to die alone in her house. A byproduct of her disease has been her inabiltiy to manage paying her bills on time (or at all) and her dependence on her financial planner. The guilt and pressure of how much money I would need to pay when shit hits the fans has kept me up at night since she has no money saved for a care facility, home care or future medical care costs.
- Extended Unemployment: With the Federal Shutdown hitting day 29, the fear of what would I do if I were unemployed or not receiving paychecks is at the forefront of my mind. Luckily, to date, the longest I have been unemployed is four consecutive months, but the fear of not knowing when or where your next paycheck is coming from is terrifying… especially when you are single and have a crippling mortgage payment.
Fun Fact: Did you know mortgage payments (including mortgage, insurance, taxes and HOA dues) should not be more than 28% of your gross income? At one point, my mortgage was 40% of my gross income! This breeds all sorts of fears! In future postings, we’ll talk about more of these money fears and how you can subdue and overcome your fears because you aren’t bound to hold on to them or the stress that they are causing you.
Tell me, what are your biggest money fears? Have you faced them already, are they looming on the horizon or are you a doomsday prepper and preparing to never ever let them ruin your life? Let me know!