Building Financial Confidence

5 Steps to Improve Your Financial Confidence

Financial confidence is the knowledge of the power you have over your finances. By being financially confident, you have greater trust in your ability to manage your money successfully. Some ways you can improve your financial confidence include:

1. Educate Yourself

Financial confidence begins with financial literacy, or understanding financial concepts and skills. By understanding your finances, you will experience greater confidence in your financial choices.

2. Create a Budget

As you create your budget, remember it's a trial and error process, and it may take a few months to find a system that works best for your needs. By keeping tabs on your money, you can easily identify which areas of your spending could use some attention and create a positive financial impact.

3. Uncover Any Subconscious Beliefs About Money

We all carry subconscious beliefs about money that can form as early as childhood. Comments such as “We don't have enough money” or “There isn't enough money for everyone” tend to stick with us and limit our financial confidence. When you identify your negative beliefs, you can take the first steps toward changing them.

4. Talk About Money

Money can be a taboo subject in some social circles, especially for women. However, it can be difficult to build confidence in a topic you do not speak about. The more you talk about money, the more comfortable you will feel with it overall. Talking with friends and family may also help you create a financial support system.

5. Build an Emergency Fund

When you lack the funds to pay for an emergency, you may spend your life in fear of having one. By building up an emergency fund, you can boost your financial confidence and focus on other things.