It’s good to be cautious with money. However, is there such a thing as too much caution? When is it OK to take a risk? Throughout life there are significant events that require large amounts of money or which come with a high level of financial risk. The anxiety that comes with this risk can hold cautious people back from taking vital steps – whether it is taking on a student loan in order to study, getting married, buying a house, having children, setting up a business, paying for a medical procedure or making the decision to retire.

Anxiety can stem from a number of different things. Seeing friends go through tough times financially can cause concern. Worries about the future also have an impact, such as nervousness about future employment, property prices, interest rates, or the cost of living. Other considerations are the lack of savings, low income or high levels of credit card debt. All this leads to people deciding to wait a few years before taking the plunge on big financial commitments.

Money is something that should enable you to enjoy life, not hold you back. If fears about money are preventing you from enjoying life, there are some things you can do to reduce them. Take an objective look at your financial situation, without letting emotion get in the way. Get your calculator out and look at the consequences (financial and non-financial) of both taking the risk and not taking it. Think of what your plan B might be if things don’t turn out as expected – such as having a back-up fund to fall back on. Obviously, making a serious effort at saving and getting rid of debt helps a lot. It is always better to be in a sound financial situation before taking a big risk.