Fear and Money – I wish the two never crossed paths. Unfortunately for many when they think of money it comes packaged with fear. I still remember when I moved out on my own for the first time and 3 months later being down to my last hundred dollars. I think the shock, disappointment and torturous thoughts of being humiliated when others found out left me in a state of not thinking straight. I withdrew my last hundred dollars and only 100 yards down the street could no longer find it. To this day I have no clue where it went. What I do remember vividly are all the swirling emotions of fear bombarding me at once.
I ended up having to borrow from my dad – which every guy can tell you is the last thing any man wants to do.
What’s one to do? Men aren’t alone in this. Women fear debt and running out of cash just as much. In my life I’ve learned that this saying runs very true for all – “Only a fool learns from his own mistakes. The wise man learns from the mistakes of others.” – Otto von Bismarck
One way to learn from the mistakes of others is to be proactive and become financially literate. Since starting Fearless Men with my good friend Todd we’ve been introduced to many financial bloggers. Our own financial literacy has increased incredibly. Yet this is still a small amount compared to where we want to be. So we decided to start a site for men and women to engage in financial discussions and learn together. We called it Fearless Dollar – Take Your Money Further. Our goal is to jump in the pool of personal finance and learn alongside writers and readers. As we progress we hope to share our lessons learned and insight.
Here are some ways we can be Financially Literate and Fearless with our Dollar
Learn How To Budget
You can’t build a house without a foundation. Nor can you build a nest egg, emergency fund, retirement fund, stay out of debt and stand on your two feet without a monthly budget. Every personal finance expert out there will tell you that you must have a budget. There are different kinds of budgets. As long as it helps you keep track of where your money is going then you’re in better hands. Own your money before debt owns you.
Stand on Your Own Two Feet
Catherine from Plunged In Debt wrote for us, “My mother taught me at a very young age that if I was unable to stand on my own two feet, then no one would be able to sweep me off my feet. What she meant was that if I was unable to take care of myself, in all aspects, then how could I expect to be prepared enough to be in a relationship with anyone else?”
And this doesn’t only apply to the romanticists. You can’t take care of yourself if you can’t stand on your own to feet.
Stay Out of Debt
This is a big one. Some good loans like mortgages, student loans, car loans, business loans can be wise financial investments. But they can also be horribly bad decisions. Where is the wisdom? It lies with how much your budget can afford to take on. So you see; must have a budget first. Don’t buy too much house or too much car. Don’t get student loans for a $100,000 degree that will only get you a $30k a year job. Be rational, be financially literate.
Prepare For Your Golden Years
Saving is the key to wealth. With Compounding Interest and a steady savings plan you’ll be set. Let it do the work for you.
In 2009 many close or in retirement sold their investments because the stock market crashed. They sold out of fear.They should have held tight because those that did got all their losses back within a couple years. How did they know to do this? They probably did some research and studying of their own.