Are you worried about your financial security? You are not alone. A recent study has shown that 66% of people have some form of fear of money. The fear of financial insecurity is higher than crime, snakes, fire and even death.
In the US, according to a recent study, 60% of American’s are concerned about their finances, out of which 38% being extremely concerned. 62% are concerned about job security with 43% extremely concerned. The study also revealed that 51% of Baby Boomers are concerned about their finances over the foreseeable future.
The anxiety over financial security has worsened, which results in poor sleeping and health habits.
We all need financial security. Our society is built around earning money. From a young age we go to school, choose a career path and work for 50 odd years in order to have financial security. However, for most of us today, it is not enough to obtain the necessary financial security that will make us sigh with relief.
So, what you want and need to be happy, content and money-related stress free is financial security. Knowing that you have enough money in your bank account.
As Warren Buffet said “Never depend on single income. Make investment to create a second source”.
Over 60% of people do not have any savings and do not put their savings to work. Why? because of fear.
How to overcome the fear that stops you
An interesting article by Forbes describes the why it scares us (click here to read about it).
"Why It Scares Us Anyone who experienced the last recession either lost some money themselves, knows someone who did, or read scary media reports about people who lost all of their money. With those kinds of headlines haunting us, why wouldn’t we fear the markets? “If financial news is on TV, it doesn’t matter if it’s good or bad—people have developed a heightened state of fearfulness,” Somers says."
How to Conquer It
Figure out what your comfort level with risk is by reframing the concept of loss itself. For example: Fear is “I may lose 20% or all my savings” and opportunity is “I may gain 20% or double my savings”.
Another key factor is to identify how much you are comfortable with investing in order to earn a return. Keeping in mind that this may come with a cost.
You are investing in order to gain. “If you don’t take risks, you don’t drink champagne”. The greatest investors and entrepreneurs all took risks. More risk comes from not knowing what you are doing, but doing nothing is also a risk.
What can you do to obtain the financial security you need?
Firstly, you need to make your money work for you.
Savings sitting on your bank account, provide a false security and also carry a risk as the interest rates are lower than the rising cost of living. Therefore, your savings are actually losing their purchasing power every year. Your money today will be worth much less in 5 years time.
We all know that the only option is to invest. Whether it is into the stock market, private placements, buying property or venture capital – these are all investments.
Buying property: if you have enough in savings you can purchase a property and rent it out or do it up and re-sell it.
Invest in the stock market: you can select your portfolio of stocks or invest into the S&P 500 Index. This is a portfolio of the 500 best performing stocks selected and actively managed by the S&P team.
Invest in private placements: the 12-month Firewood Plan for example or other ventures.
Over the last five years this short term plan provides a fixed interest income of 11% paid directly to your bank account. It is provided by a Swiss-based company that has been trading wood products to over 10 countries for many years. They are the largest supplier of firewood to the Scandinavian market including Finland, Sweden, Denmark and the Netherlands, with retail clients such as Shell, Bymaxx, Kanava, K-RAUTA and Motoral. Read their latest news.
Click here to find out more about the 12-month fixed income plan or contact firstname.lastname@example.org to request the factsheet.