Financial Worries: We All Have Them. How Do We Conquer Them?

7/31/2018

post by Rick Bell

I wanted to know what people worry about as it pertains to their financial life, so I did what many people do these days. I GOOGLED IT.

I was curious to know what information is out there, readily available to people who might be seeking financial solace – and turning to Google for a way to deal.

My first search query included the phrase: “planning things people worry about”. I found a whole bunch of links about “worry”. Most of them led on to articles and blogs from publications like Psychology Today, moodsmith, INC, etc….

https://www.psychologytoday.com/us/blog/fighting-fear/201206/planning-andor-worrying

Planning for bad things to happen and why you need to be specific!

https://www.inc.com/marissa-levin/the-1-question-to-ask-yourself-if-you-worry-about-your-future.html
https://www.succeedsocially.com/makingplansworries
http://www.smosh.com/articles/6-things-old-people-worry-about-you-should-also-worry-about

I found many of the rabbit holes I went down – which I tend to do when searching the internet for answers – were not unrelated to financial planning. Many were about life changes or transitions that financial planning can help with – by relieving the financial burden of whatever’s causing that worry.

But nothing directly related to finance so far. So I changed my search slightly. I added “financial” to the initial search query and came up with a much different experience.  After funneling through the requisite number of links selling financial planning services, I found a few on topic.

I’ll break down the most interesting a bit more in-depth.

• “What Rich People Worry About” on US News:

First, I always like to know the definition of “rich”, since it is different for everyone. (Interesting tidbit: rich people never view themselves as rich.)

According to Pew Research, the income of the middle class falls between $42,000 and $125,000 before taxes (in 2014).

So, for two-income households with an income of about $100,000 each, you are considered middle class (see the chart below). I might consider that “rich” income-wise.  Wealth truly comes with how we save it.

But the article defines “rich” as the top 10% of household income earners. As per an article by Investopedia, this household income comes in at $295,845. So we’ll go with this definition of “rich”.

So.. What do rich people worry about? Not having enough for retirement. (Sound familiar?) Worries about health, being sued, identity theft, protecting assets, business responsibilities, and the kids.

And of course, the big one and the demise of all great plans: KEEPING UP WITH THE JONESES.

“For where you have envy and selfish ambition, there you will find disorder and every evil practice.” James 3-16.

With increased income, comes increased worries…

https://www.gobankingrates.com/retirement/planning/top-8-financial-worries-americans/
https://www.cnbc.com/2015/08/03/most-americans-rich-or-not-stressed-about-money-surveys.html
http://time.com/money/collection-post/3947122/money-anxieties/
https://www.cnbc.com/2017/10/02/financial-planning-for-divorce–its-not-just-for-women.html

Some of the biggest worries came up over and over again: out-of-control budget, planning for retirement, rising cost of higher education, no emergency fund, steep housing prices, volatile stock market. But here is the problem that really spoke to me, because it’s the root of all problems, THE LACK OF A FINANCIAL PLAN!

It is important to know we all worry about something (even financial planners). And it seems these worries revolve around money, or more importantly, things we can control and things we can’t.

You can’t worry about what might NOT happen!

Things we can control, we can plan for. Since money is typically the BIGGEST worry: set up a financial plan. It is an important process in life.

BUT it alone will not make you successful! It’s the ongoing process of planning that will keep you on track. And it is this desire and balance that will move you toward success.

“In preparing for battle I have always found that plans are useless, but planning is indispensable.”
– Dwight D. Eisenhower

If you have questions for Rick, reach out to us any time at info@planningcapital.com or 856.482.8700.