Nightmare on Wealth Street ~ Facing the financial fears that haunt your dreams

In this edition of The Wealthought Out, we will explore the impact that fear and anxiety can have on our financial decision making.

Dear Curious Reader,

Welcome to this latest edition of The Wealthought Out, where I share my personal and professional thoughts on Money, Wealth, Legacy, and everything in between. Why do I do this? Because I imagine a world where everyone can genuinely live a fulfilling and wealthy life.

In today's thought letter, we will explore the intricate relationship between fear and wealth, uncovering why our financial anxieties can work for and against us and, more importantly, how to overcome our financial worries, leading us to live a more fulfilling and wealthy life.

Today Wealthoughts at a glance

• Understanding the roots of our financial fears and learning how to address them constructively.
• Explore strategies to manage financial anxiety effectively. Learn how to turn these anxieties from potential obstacles into tools for financial growth and personal development.
• How to build healthier relationships with money, while working towards your financial goals with confidence.

The Haunting of Financial Anxiety

In the shadows of the darkest corners of our minds lurks an all too familiar specter. It creeps in like a ghost of the night, feeding on our fears and uncertainties, with a voice so loud it often consumes us, leaving us feeling helpless. This unrelenting voice, this thing that lingers throughout most of our lives, are our financial fears and anxiety. It seemingly strengthens the chains of our worries, the more attention we give it. Worries about bills, debts, the stock market, retirement, job security, and all of the unknown future. Just as the witching hour reveals restless spirits, so does our financial unease reveal the darkest corners of our financial lives. Beware, for this intangible terror can haunt our dreams, whispering nightmares of financial scarcity and seemingly inevitable doom. The question is, will you brave the haunted castle of your finances, or will you be consumed by the phantoms of your own making?

In recent conversations with clients, it seems as though fear and anxiety have been on the top of mind for most folks, perhaps it’s because we are closer to Halloween? Or perhaps something else? As we navigate the current geopolitical climate, the looming threats of international conflicts, and the uncertainty brought about by the upcoming US presidential elections, it's understandable that many people are concerned about their finances and wealth. There are simply many unknowns taking center stage it seems. Acknowledging these feelings is essential, as worries about financial security can weigh heavily on our minds. However, it's crucial to recognize that while these concerns are valid, they can impede our ability to achieve our financial goals.

“We suffer more in imagination than in reality.” ` Seneca

Financial anxiety can have far-reaching effects on our overall well-being and decision-making abilities, causing us to create self-fulfilling prophecies. We might make hasty decisions or avoid critical financial moves when overly anxious about our finances. This inaction or impulsive behavior can potentially worsen our financial situation, fueling our anxieties even further.

Yet, at the same time, it is essential to recognize that feeling concerned about our finances can be beneficial. I challenge you to rephrase that “concerned mindset” into a “curiosity mindset.” A healthy amount of financial curiosity can motivate us to budget wisely, save diligently for the future, and make wiser and more informed money decisions. The key lies in finding a balance—to be aware and proactively curious about our finances without letting our fears and anxiety take control.

Confronting Shadows: Unraveling Fear and Anxiety

Fear and anxiety can be the biggest obstacles on our journey to living a fulfilling and wealthy life. While we may use fear and anxiety interchangeably, it is important to understand their differences.

Fear is a response to a perceived immediate threat, while anxiety involves worrying about potential future threats.

• Fear in finance might manifest itself as an immediate reaction to a sudden market crash or unexpected job loss. It responds to a present, tangible threat to one's financial security. This fear can be intense but is typically short-lived as the immediate danger passes or is addressed.
• Anxiety, on the other hand, is more persistent and future-oriented. Examples could be constant worry about potential economic downturns, concern for future job security, or insufficient retirement savings. This type of anxiety can be chronic and may affect long-term financial decision-making.

Being aware of the differences between fear and anxiety is crucial to our efforts in managing our emotional responses when we are tasked to make important financial decision. By having this understanding it can help us respond effectively to various financial pitfalls that appear. Fear might require immediate coping strategies as action might be necessary to address threats today. Whereas a more measured, strategic approach is often beneficial for anxieties we may be having about potential future events. This can be addressed through long-term planning, education, and professional financial advice. Which one of these do you currently or have recently found yourself experiencing more, financial fear or anxiety?

The "What If" Paradox

What if we have world war 3? What if there's a recession? What if I lose my job? What if I run out of money? What if I have a major health issue? What if social security isn’t around when I retire? What if I lose all of my money?

These are questions that often take up space in our mind frequently and often. They are valid questions indeed. Yet we must remember that we have the power to choose what we feed our mind. If that is the case then, why do we constantly feed our mind questions that elicit fear and anxiety? The answer - evolution, in form of our Negativity Bias. Our negativity bias is an evolutionary trait that helped our ancestors survive. Early humans regularly faced potentially lethal danger from being chased by starving predators, danger from other tribes, surviving extreme weather conditions, traversing dangerous landscapes, threats of banishment from their tribe, and so on. Failure even a hundred years ago could mean that you die. Thankfully today we are not being chased by hungry bears, or traversing dangerous landscapes for survival. Yet we still place much emphasis on our fears due to our negativity bias.

As a result, instead of focusing more on the opportunities we have, we focus most of our attention on potential threats and fall into the "what if" thinking trap.

This negativity bias can significantly impact our financial decisions. We might:

• Overestimate the likelihood of financial losses.
• Underestimate our ability to handle financial challenges.
• Avoid potentially beneficial financial opportunities due to a fear of failure.
• Even dwell on past financial mistakes, fearing that we will make the same mistake again, rather than trying to learning from them.

While considering the potential risks is important in anything we do, we must also remember to ask curious "what if" questions: What if my investments work out? What if the market recovers? What if I have enough for retirement? What if, what is happening to me, is meant to happen?

Overcoming this bias requires a conscious effort and awareness along with continuous practice. Some strategies we could use might:

• Actively seeking out and acknowledging positive financial experiences.
• Balancing risk with opportunity when evaluating important financial decisions.
• Practicing gratitude for your current financial situation, no matter how small.
• Reframing financial setbacks as learning opportunities rather than failures.

By recognizing our negativity biases and actively working towards counteracting them, we can make more rewarding financial decisions, which may lead to a more fulfilling and wealthy life.

Weekly Intention - Turn you Financial Fears and Anxieties into your Ally

Overcoming financial fears and anxiety is crucial for achieving long-term financial success and a mind of peace - [Click here to read my previous thought letter on having a mind of peace.] Instead of letting fear paralyze us, we can harness it as a powerful motivator when channeled correctly. Fear can become our ally to drive positive financial change in our lives.

“The happiness of your life depends on the quality of your thoughts.” ` Marcus Aurelius

Here are some strategies to transform financial anxiety and fear into impactful actions:

1. Identify Specific Fears: Pinpoint precisely what aspects of your financial situation is causing your anxiety. Is it debt, lack of savings, or uncertainty about investments? Something else?
2. Create Goals with Essence: Do your goals hold special meaning to you, or are they merely boxes on a list to be checked off? [Read my previous thought letter click here on why creating goals with essence is more important than creating goals just because.]
3. Have an Action Plan: Develop step-by-step plans to achieve your goals. Break larger goals into smaller, manageable tasks.
4. Track Your Progress: Monitor your progress regularly. Seeing improvement, even in small steps, can boost confidence and motivation.
5. Reframe Negative Thoughts: Instead of asking yourself, "What if I never become financially secure?" try asking, "What if I take daily steps to improve my financial situation? How will my life change?"
6. Educate Yourself: Use your financial anxieties as a catalyst to learn more about personal finance. I believe knowledge can dispel many unfounded fears.
7. Seek Support: Don't hesitate to reach out to financial advisors, mentors, or support groups. Sharing concerns can often lead to solutions. The most important thing to remember is you are not alone.

Our anxieties and fears often stem from a lack of control and understanding. By implementing these strategies, you're taking active steps to regain control over your emotional state and financial situation.?

Facing your biggest financial fears head-on, gives you the power to build unbreakable confidence in your decisions, attract priceless life experiences, and potentially unlock new opportunities to help others.

Remember, the goal isn't to eliminate fear entirely—some level of concern can be healthy and motivating. Instead, the aim is to manage these fears productively and turn them into your ally.

There will be challenges and setbacks along the way. But through discipline by working to overcome your fears and expand your financial comfort zone, you'll be better equipped to handle whatever financial challenges come your way.

Don’t Walk Alone

It is important to realize that you are not alone on your financial journey. Engaging with a community of like-minded individuals can provide support, shared wisdom, and the right amount of motivation you need to be disciplined and overcome your financial fears and anxiety. Here are some ways to connect with your financial community:

1. Attend Financial Workshops and Seminars: These events often feature expert speakers and offer opportunities to learn about specific financial topics. They're also great for networking with like-minded individuals.
2. Engage with Financial Professionals: Seek advice from financial advisors, coaches, or planners. They can provide personalized guidance based on your specific situation and goals.
3. Attend Local Meetups: Look for local groups focused on personal finance, investing, or entrepreneurship. These can be great for in-person networking and learning.
4. Follow Financial Experts on Social Media: Many financial experts share valuable insights and tips on platforms like Twitter, LinkedIn, and YouTube. Engage with their content and join the discussions.

Remember, the goal of engaging with a financial community is to gain knowledge, stay motivated, and remain accountable. Sharing your journey with others can also provide emotional support and encouragement, especially during challenging times.

However, it's crucial to approach community advice with a critical mind. While peer insights can be valuable, everyone's financial situation is unique. Use community engagement as a tool for learning and motivation, but always consider how advice applies to your specific circumstances.

Lastly, consider the power of giving back to your financial community. As you gain knowledge and experience, sharing your insights can be incredibly rewarding and solidify your own understanding of what you are learning. Whether offering advice to newcomers, sharing your success stories, or mentoring others, contributing to your financial community can enhance your journey toward financial well-being.

The Power of Positive Financial Experiences

Our negativity bias often sneaks into our lives without us knowing, making it crucial to actively recognize and savor positive experiences. In the realm of finance, this could mean celebrating when you hit a savings target, make a smart investment that aligns with your goals, or successfully navigate a money challenge, like paying off debt.

Here are some practical ways to relish positive financial moments:

1. Visualize your progress: Create charts or graphs to illustrate your financial growth journey.
2. Treat yourself: Establish a small reward system for achieving financial milestones.
3. Learn from successes: After overcoming a financial hurdle, reflect on the lessons learned and your personal growth.

By intentionally savoring these positive experiences, you'll cultivate a more optimistic and resilient financial mindset, helping to counterbalance anxiety and fear about money matters.

A Final Thought - Embracing Financial Courage

While feeling fear and anxiety about our financial future is natural, thanks evolution! We mustn't let these emotions control our decisions. By understanding our biases, educating ourselves, seeking professional advice, and maintaining a growth mindset, we can transform our relationship with money.

Remember, every financial success story begins with someone who dares to overcome their fears and take strategic and purposeful risks that align with their goals. Your journey to financial fulfillment begins with a single step and continues with another single step, and so on and so forth with a decision to face your fears head-on and embrace the opportunities that lie ahead.

In the words of Warren Buffett, "Be fearful when others are greedy and greedy when others are fearful." This doesn't mean be reckless in your risk-taking but rather having the courage to see opportunities where others see only threats.

As we navigate these uncertain times, let's commit to cultivating financial courage. By doing so, we increase our chances of financial success and pave the way for a more fulfilling and wealthy life.

Just in case you missed it..

Click here if you missed last weeks edition which focused on “The Essence of your Goals.”

Did you enjoy this thought letter? If you did please like, comment, share it with people you care about and help me paint a vision of a world where everyone can live a fulfilling and wealthy life.?

Follow my profile on LinkedIn - (Kristoffer Fu), Instagram and Facebook - (@wealthmvmtwithkris) for more reflections on Wealth, Money, Legacy, Financial Planning and Connection and tune into my podcast “The Wealth Movement” for additional insight.

If you would like to learn more about me and my team at Evoke Wealth Management along with the bespoke services we offer, and/ or you simply have a question, you can visit us at Learn more about Evoke Wealth Management. I look forward to connecting with you.

Cheers to your financial courage and success!

Thank you for reading. Stay curious about your Wealth.

P.S. I'd love to hear your thoughts on this topic. Please share your reflections by replying to this newsletter.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC.? Investment advisory services offered through Kestra Private Wealth Services, LLC.? Evoke Wealth Management is a member firm of Kestra Private Wealth Services, LLC, an affiliate of Kestra IS. Evoke Wealth Management and Kestra IS are not affiliated.?Investor Disclosures:?https://www.kestrafinancial.com/disclosures