4 Fears About Money, According to Farnoosh Torabi and What To Do About Them
Written by
Adam Palasciano
Edited by
Rebekah Evans
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Money is great. Having it means you can buy the things you need or want, you can stay out of debt and you can live more comfortably. However, money can also come with feelings of fear and anxiety.
According to the 2024 Annual Retirement Study from Allianz Life, a stunning 63% of Americans are more worried about running out of money than about death itself. If you’re in the 63%, it doesn’t have to be this way and you don’t have to let your money fears control your life.
In a recent Mel Robbins podcast episode, Farnoosh Torabi, personal finance guru and author of “A Healthy State of Panic,” explained the four biggest fears everyone has about money.
Not Having Enough
When it comes to money, there’s a “realness” about not having enough of it. While inflation is cooling, prices for essential expenses such as rent and groceries remain high. So there’s a “real, actual, legitimate reason for that fear,” according to Torabi.
If you want to allay your money fears, consider asking for a raise at work, getting a new job with higher pay or taking on a side hustle to boost your income.
Losing It All
If you’re comfortable financially, the fear of losing it all may still creep up on you from time to time.
“You’re just one job loss away from losing your house,” Torabi said. “You’re one bad investment away from not being able to retire.”
To mitigate this fear, be sure to always live below your means and build a sufficient emergency fund. This way, if you do experience a layoff or a surprise emergency expense, you won’t find yourself in dire straits.
Wanting Too Much
The fear of wanting too much can affect anyone, but disproportionately affects women according to Torabi.
“This affects a lot of women — the admitting of I want to be rich, I want to be financially successful,” Torabi explained. “The expectation is not that you’re going to be that woman. The expectation is maybe that you’re going to prioritize caregiving, you’re going to prioritize your family, you’re going to prioritize other things, not money.”
You may want to be rich and successful, but it can be scary because you don’t want to be judged. While it’s important to remain humble, don’t let societal pressure hold you back from aiming high and working hard to make a living, no matter your gender.
Teaching Kids Your Bad Habits
If you grew up in a household where personal finance was never a topic of discussion, there’s always time to turn that around and get educated. However, the fear of teaching your kids bad financial habits is very real.
“We fear as parents sometimes and caregivers, raising our kids in such a way where the cycles get repeated,” Torabi said. “Maybe we grew up with a fear of scarcity and now we’re bestowing that on our children or, on the other end, giving them too much and then they don’t appreciate it.”
Getting smart about your finances is critical. Once you do, you can break the cycle of bad habits and be a star example for your kids so that they don’t repeat the cycle with their future kids.
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