Your emotions play an important role in your finances. The mere mention of the word “budget” can evoke all kinds of emotions. Simply observing and naming emotions is a powerful first step to having a breakthrough for yourself when it comes to your finances. Today, I want to talk about one of the most powerful emotions that can have a bad impact on your money; AFRAID.
AFRAID has been defined as an acronym: False Evidence Appears Real and Previous Experience Actually Repeats. Temple Hayes caught my eye when she said in her recent article, Fear in the Daily Journal, “What we fear often takes us deeper, fuels our growth, and helps us shine.”
Strong emotions Fear can paralyze and impair our decision-making abilities. When it comes to your finances and the decision whether to file for bankruptcy or not, the fear of failure can mean financial ruin if you use your retirement account to pay bills instead of considering bankruptcy. Alternatively, the fear of failure may motivate you to turn to a financial professional to help you sort out your situation BEFORE you make a major financial decision, so that you can avoid a lifetime of financial setbacks rather than your current temporary situation. Fear cuts both ways.
It’s important to admit that you fear financial failure and move on. A wise and prudent move would be to consult with your tax professional and your local bankruptcy attorney and take a close look at your financial situation. All Fear, in fact, is not enough information to make the right decision. Seeking professional advice can save you money and your retirement account.
Don’t let fear paralyze or hinder your need to make wise choices. Remember that indecision is also a decision and the “Ostriches Effect” of sticking your head in the sand will only make things worse. When you are overcome with fear, it is important to first discuss it with your trusted advisor and then seek professional help for your finances. You may only need to work with a local tax professional, or you may need to consult a bankruptcy attorney who can also provide non-bankruptcy alternatives.
There is no magic pill that you can take if you are facing the problem of not having enough income to pay all your bills. You cut your budget and live cheaper, or you make more money. What holds you back is your mind. Sometimes brainstorming ideas, even the most implausible ones, can lead to great ideas that you can live with. It starts with being real about how your emotions control how you spend your money. If you build a bridge between your head and your heart, only then can your financial future be brighter.