Sara, a 50-year-old working professional, was in a car accident. She suffered some serious injuries and submitted a claim for permanent partial disability benefits with her insurance company. Her personal physician had already provided detailed documentation. But her insurance company requested her to attend an examination with another doctor, provided by them. This doctor, they said, is an "insurance doctor." Now, this was something new to Sara. But is it a new concept? Let us find out. Who Is an Insurance Doctor? Insurance doctors play a critical role in the insurance sector, which is quite underrated and misunderstood. Most of us assume that they actually replace the role of our treating physicians, but that is not the case. Our physicians treat us in case of any mishap, but they do not assess or evaluate our level of injury or disability. But then, who actually does it? This work is done by Insurance doctors, which, in turn, impacts or affects our insurance benefits. Th...
Financial Fear → Opportunity:
We are repeatedly taught to be fearless and strong and charge ahead boldly every time we face challenges. Society generally believes that fear is the root cause of all failure. But what if I tell you that fear is actually an opportunity? Yes, it is a great opportunity that motivates you to learn, explore, and understand by diving into details and struggling out of the mess you are in. But all of it depends on whether you are ready to use your fear of darkness to search for the light or your fear of failure to strive to achieve success.
Now, let us imagine this situation from a monetary point of view. It is important to pay attention to any fear that you have related to monetary stability and security because this will instill urgency in you to find out how you can secure yourself financially.
Thus, financial stress can be considered a valuable tool that helps build wealth. An example will help in understanding the concept better.
Example:
Sarah, a 30-year-old marketing professional in New York, is deeply worried about her financial future. As a single mother of a 6-year-old, fluctuating job security and rising living expenses are making her feel insecure about her future. Here, it is easy to note her fears related to her and her child’s future, which instigates her to take the next step, that is, proper financial planning.
Let us see what she does next. To address her financial stress, Sarah decides to create a financial portfolio, that is, a combination of 80% safe investments with low risk and 20% equity that will have risk but compensate for the low return from safe investments.
She starts by assessing her current situation—tracking her income, expenses, and debt, cutting unnecessary costs, and prioritizing savings. Sarah tops up her already existing fixed deposits and mutual funds, which offer low-risk but good returns. She also opens an emergency fund, that will take care of her living expenses for the next 6 months.
After consulting a financial advisor, she also focuses on her retirement accounts like a 401(k), and a Roth IRA for tax benefits. Lastly, she also picks a suitable term insurance policy to secure the future of her small child in her absence.
Roadmap - From financial fear to wealth building:
Thus, the above scenario proves how we can turn our fear or monetary stress into strength, especially if it is related to finance. So, here are a few steps to convert your financial fears into opportunities:
- Identify the scenarios that cause your financial worries.
- Play out the situation in your mind: what if you lost your job? What if you incur a loss in the stock market? What problem can a recession cause for you? What will happen to your dependents in your absence?
- Discuss the monetary stress issues with an experienced financial advisor to know your options.
- Educate yourself. No one can take away your knowledge.
- Confidently select your investment options and secure your future.
Conclusion:
Thus, analyze the worst-case scenario and use the tool of "Fear" to find a solution to your monetary stress issues. A clear roadmap will help make you potentially successful for the rest of your life.
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