Fear of Facing Hard Financial Decisions Could Land You In Bankruptcy


Your emotions play an important role in your finances. Just mentioning the word "budget" can conjure up all kinds of emotions. Just observing and naming the emotions is a powerful first step toward having a breakthrough for yourself in relation to your finances. Today, I want to talk about one of the most powerful emotions that can have a devastating effect on your money; FEAR.

FEAR has been defined as an acronym: False Evidence Appearing Real and Former Experience Actually Repeating. Temple Hayes struck a cord with me when she said in her recent article, Fear in the Daily Journal, "What we fear is often what takes us deeper, fuels our growth, and helps us shine."

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The powerful emotion Fear can paralyze and impair our decision making ability. When it comes to your finances and the decision whether or not to file bankruptcy, fear of failure can mean financial ruin if you tap into your retirement account to pay bills rather than consider bankruptcy. Or, fear of failure can motivate you to turn to financial professionals to help you sort through your situation BEFORE you make any major financial decision, so that you can avoid life long financial setbacks rather than your current temporary situation. Fear cuts both ways.

It's important to acknowledge that you're afraid of financial failure and move through it. A prudent and wise 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 really is, is not enough information to make a well informed decision. Seeking professional advice can save you money down the road and your retirement accounts.

Don't let fear paralyze or hinder your need to make wise choices. Remember that indecision is also a decision and the "Ostrich Effect" of sticking your head in the sand will only make things worse. When you're overwhelmed by fear, it's important to talk about it first with your trusted advisers and then seek professional help for your finances. You may only need to work with your local tax professional, or you may need to consult with a bankruptcy attorney who can also provide non-bankruptcy alternatives.

There is no magic pill you can take if you're facing the problem of not enough income to pay all your bills. You either cut your budget and live more cheaply, or you make more money. What stifles you is your mind. Sometimes brainstorming ideas, even the most absurd of them could possibly generate a great idea you can live with. It starts with getting real about how your emotions control how you spend your money. If you build the bridge between your head and your heart, only then can your financial future become brighter.


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