Financial confidence is important to address. No one is born good at money. It is something that is built overtime and it’s something you can change.
Your relationship with money impacts your behaviour with your money. When you’re confident, you are motivated to challenge yourself.
The more confident you feel about your money, the better you’ll do to manage it. Here are a few quick tips to build this confidence.
Don’t feel pressured to tackle the whole world of finance all at once. Start from square one. Open an online bank account for instance as your first step to being good at money. Begin with a safe money move and build from there.
Break It Down
Start with the basic 50/20/30 budgeting rule to feel in control of your money. Pull out your recent bank statements and categorise each purchase into the three groups – 50% for needs, 30% for wants, 20% for savings. Make some adjustments to your spending habits and try to get closer to the percentages next time.
Money is the top cause of stress for most. Protect your mental health by looking into investing and saving, they provide a sense of control over your future and financial goals. So instead of ignoring your money problems, face it. It will help you knock out the stress and anxiety.
Talk About It
Find people you can talk to about money. Open up and be honest about your money goals with you partner, family, or even close friends. The more you talk about money, the less taboo it’ll be. If you don’t have anyone to talk about finances with in person, there is always social media. You can join communities of people having open money conversations and learn from platforms like YouTube.
Time For The Bigger Steps
Take time to understand and digest your bigger financial choices such as investing. You probably don’t see yourself as someone who invests but, you’re missing out on the sweet gains. Once you’ve reached closer to your idea budget and spending goals and have more confidence, dive into your bigger money decisions.
“Knowledge is Power” they said. The more you understand your finances, the more in control you feel. Share what you’ve learnt in your journey, it will be a confidence booster for you because now you’re the one who’s “good at money”.