by Kris Olds

Created on: July 03, 2007   Last Updated: February 05, 2009

As a person who once had the financial approach of sticking my head in the sand and waiting for the crisis to pass, I can speak pretty honestly about the fear associated with taking control of your money. Finances are an area full of emotion. We equate money with power and finances. As a society, we think that the more money we have, the happier we will be. And without money, we won't have any personal value. All those strong emotions can lead to a sense of fear that can be crippling when it comes to tackling personal finances.

Facing fears can be a long and painful process. But the first step always includes naming the fear. Sit down and list the specific things that you are afraid of. Perhaps you're afraid that by looking too closely at your finances, you'll realize how little money you have. Or conversely, you'll realize that you have more money than you thought and the fear will come from not knowing how to maximize its potential. In either case, coming up with some specific points that name your fears is a necessary first step in conquering the fears.

The second step involves identifying the likelihood of those fears coming true. As much as possible, recognizing what fears are ones that should receive attention and which ones need to be let go will start to clear a path through the forest of fears that your financial situation has become. A useful tool is playing the "what if..." game. What if you lose your job? Then what will you do? What if you inherit a large sum of money? What will you do with it? After you asked the questions, be objective about the likelihood of those concerns happening.

The third step is taking action. You've named the fears, you've identified which ones need the most attention, now act. This step is the most difficult but also the most gratifying. It may involve creating a budget for the first time in your life or it may call for you to get an additional job to help reduce debt. But through conquering the fears, you will gain a sense of strength in knowing you are able to take care of yourself and manage your finances.

Managing finances is a common fear. But just like the childhood monster in your closet, they are much less frightening when brought into the bright light of day. Each step that you take to reclaim your finances and conquer your fears will bring you a step closer to financial comfort and satisfaction. Being in control of your money means being responsible for your own destiny. In these uncertain financial times, knowing what you have control over and where you stand can bring a certain level of peace. Isn't it time to pull your head out of the sand?

Learn more about this author, Kris Olds.
Click here to send this author comments or questions.