Do you avoid thinking about your finances at all costs?
Does the thought of talking to someone about your net worth make you feel sick to the stomach?
These are some common signs of financial avoidance. A very real and unfortunate issue that stands in the way of people taking control of their finances and building wealth. Something that we at REIF are very strong advocates for.
In this article, we're going to explore this finance issue and some of its common signs. We will also explore the strategies that can be implemented to overcome it; so that you can become one step closer to fulfilling your finance goals and achieve financial independence. Because, let's face it, who wouldn't want to become financially free?
What is financial avoidance?
Financial avoidance is a product of financial anxiety. This type of anxiety is defined by GFC Global as; "a feeling of worry, fear or unease about your finances." It can be bought on by other forms of anxiety or by being confused by financial terms and numbers. Financial avoidance can present itself in numerous ways, these include;
When you avoid thinking about money and finances due to fear and worry
When you avoid talking about your finances and your net worth due to fear and worry
When you avoid looking at bills, statements and financials
If you're in a situation that involves combined finances (i.e. a relationship), you don't take part in any involvement of it and leave it up to the other party to take control of it
Why is it an issue?
The truth is; matters relating to finance are incredibly important. Money plays a significant role in our day to day lives and we need to be aware of our finances to live and grow. If you don't understand your finances or are unable to manage them correctly it can lead to a range of issues including debt.
Furthermore, this can hinder any creation of wealth, ultimately leading to further stress and a reduction in quality of life. In fact, money plays a bigger role in our health and quality of life than we give it credit for! According to the World Health Organisation, income and social protection is one of the biggest social determinants of health; which acts as a condition that shapes how people live their lives.
What can you do to overcome financial avoidance?
First and foremost; to overcome this issue you must face it head on. This will start with identifying the reasons why you're avoiding money. What's causing you to feel anxious, overwhelmed or worried about facing money? Then you could consider implementing the following steps.
Structure your finances so that it's easy for you
This may include implementing automated systems such as having a portion of your income deposited into a savings account. You can also structure your bills to be deducted automatically from an offset account, saving you the hassle of having to manually pay them each time they come to you.
Develop a plan so that you have a little more control of your finances
Sometimes having a plan can provide you with a little more structure. Determine what percentage of your money should go towards essentials and allocate a reasonable percentage towards non-essential spending. Try not to be too strict on yourself and allow for the occasional spending of non-essential items.
Track your income and spending
For a better grasp of your finances, it's important to regularly review your money coming in and money going out. This will be essential for creating contingencies to support you with wealth creation.
If all else fails, seek assistance
If you feel like you've hit a bit of a road block and are unsure of what steps you should be taking to tackle your finances, it's important to know that there are people and services that are available to assist you.
Psychologists and mental health professionals are experts in behaviours. They know how to correctly support people with changing unhealthy behaviours and supporting a range of mindset related issues. There are also financial experts such as REIF who are well-versed in assisting people with their finances and structuring them efficiently.
Always happy to help
If you're looking for assistance with structuring your loans, we're here to help. REIF have access to a great range of connections who are always happy to assist with matters that could be out of our hands relating to your finances. Please feel free to reach out! REIF are always happy to help you on your quest to financial freedom. Our contact details are listed below.
Ph: 1300 130 932
Email: clientservices@reif.com.au
