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Fear is the biggest reason why people lose their money so easily today. The is fear manifests in three forms the consumer's fear of death; advertisers cashing on consumer's fears of death, disease or humiliation; and predatory lenders who are more than willing to make profits off consumer's fears.

Fear Of Death

Perhaps the only thing more feared than a tax audit is death. At least we know have survived a tax audit and were able to tell us in painful detail what to expect during an audit. But we don't have that certainty with death. Although there have been people who have claimed to have near death experiences and firmly believe they know what happens after death, there are still a lot of doubts as to whether those people have a clue.

People are literally afraid that they can die at any moment, so why not have a nice time before kicking the bucket? You could get hit by a bus tomorrow, so why not enjoy a hot rod now? Another fear is that we lay dying, we look back on life and see everything we always longed for by never got.

The consumer may even fear being robbed and so spend all of his money so that the real or imaginary thief can't have any. For example, in some welfare programs, the recipient is not allowed to have a savings account of over $200, or lose what little benefits they have. If the recipient cannot find a job, then there is a genuine fear that savings will equal no chance for survival in the near future.

Playing Off Fears

All businesses and most politicians play off consumers' fears about themselves, about their looks, their social standing and their mortality. Afraid of not being attractive to the opposite sex? Buy our product and get laid. Afraid of getting cancer? Buy our product and be safe. Afraid of getting scammed? By two of our products and be doubly safe.

Although people may claim to be immune to advertising, the constant bombardment of advertising works like Nazi propaganda. You hear it for so long, you start to believe it, especially if the product or service helps alleviate any fear you may have.

Predatory Lenders

Once President Reagan and Prime Minister Margaret Thatcher began deregulating the financial industry, the course was laid for the current world wide economic meltdown. Credit card companies could charge whatever interest rates they want and make it so difficult to change cards that people would just pay.

Banks and lenders also realized that people are basically stupid and will believe anything that they are told. And so people began buying adjustable rate mortgages they thought they could afford, until the interest rates kicked in. People would then go get payday loan to cover a mortgage payment and only later discover that they would have to pay a 600% interest rate all of which were perfectly legal, of course, because of the fear of letting the stockholders make less profit.

Learn more about this author, Rena Sherwood.
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