It may sound unlikely, but even the wealthiest people can be afflicted by fear that they’ll run out of money.
Peniaphobia (or FORO, if you prefer an acronym) is an irrational fear of poverty or financial insecurity. Originating from the Greek word “penia”, meaning poverty, it can manifest as debilitating anxiety, obsessive saving or hoarding, or extreme frugality.
Because human nature has programmed us to expect the worst, our survival instincts insist that we focus on risk, scarcity, and “what if” scenarios.
If you’re afflicted by peniaphobia, it could prompt you to adopt negative behaviour that may end up making the fear come true.
Keep reading to learn about four financial decisions that could prove costly.
1. Not having a financial plan
When fear dominates, it’s all too easy to procrastinate.
In terms of financial fear, you may avoid thinking about financial planning altogether. Alternatively, you may rely on general rules of thumb you’ve heard about, or simply save all your money in cash.
The problem is that without a clear, structured financial plan, it’s impossible to know whether you’re genuinely at risk of running out of money.
A robust financial plan helps answer the questions that may keep you awake at night:
- How much is enough?
- What level of spending is sustainable?
- How long does my money need to last?
- How will inflation affect my cash savings?
- What happens if markets fall or my circumstances change?
Without this clarity, you may find you underspend or delay important life decisions. It may also lead you to hold too much in cash, meaning your wealth will fail to keep pace with inflation, eroding your purchasing power.
Combined, these actions could harm your financial resilience.
Read more: 5 effective ways to boost your financial resilience in 2026
2. Paying unnecessary fees
Fear can also lead to the sticky problem of inertia, simply because change feels risky.
Left unchecked, inertia could leave you with:
- Investment products with high charges
- Multiple duplicate arrangements across jurisdictions
- A scattered, poorly diversified investment portfolio.
In our experience, any one of the above often leads to another. And yet they could all leave you exposed to higher fees.
Over the long term, paying expensive fees can compound, eroding your returns and preventing your wealth from growing.
3. Investing based on emotions or media noise
Being afraid of running out of money could make you more prone to knee-jerk investment decisions. This could show itself in two very different, yet equally harmful ways.
You may be constantly tinkering with your portfolio – buying and selling investments on a whim, chasing winners, or selling after reading alarmist headlines.
Alternatively, uncertainty may lead you to retreat to cash when faced with market volatility.
Both responses are understandable, but financially damaging. Emotional decisions, driven by short-term market noise or sensational media coverage, increase the risk of buying high, selling low, and missing periods of recovery – which can have a far greater impact on returns than market volatility itself.
Meanwhile, long-term investing rewards discipline, diversification, and patience.
Read more: Revealed: The true cost of letting emotions guide your financial decision-making
4. Forgetting to factor in taxation when you leave Singapore
For expats, low-tax jurisdictions are an attractive proposition, but this can present problems if you wish to move away.
As an expat in Singapore, the low-tax environment could lull you into a false sense of security, which might bite if you relocate without careful planning.
Investment structures, income strategies, and estate plans that work well in Singapore may become inefficient – or potentially punitive – elsewhere in the world.
Failing to create a clear exit plan, considering residency and domicile rules, cross-border taxes, or reporting requirements, could make a big dent in your wealth, even as you plan for the future.
We’re here to help you overcome financial fear
If you’re suffering from peniaphobia or often worry that you’ll run out of money, we’re here to help.
We focus on your lifestyle, goals, and aspirations and tailor our advice and solutions to your exact requirements.
As fellow expats, we’ve experienced the highs and lows of living overseas; we know what works financially and the pitfalls you should avoid.
We don’t sell outdated financial products or recommend commission-based plans. Instead, we are completely transparent, operate on a fee-only basis, and will never recommend anything we wouldn’t do ourselves.
Next month, in part two of this peniaphobia series, discover five positive steps you can take to help ensure you don’t run out of money.
