Boost your financial confidence

We’d all like to feel better managing our money. We’ve got five simple ways to give your financial confidence an amazing boost.

Managing our money is an essential life skill. Yet so many people find it overwhelming, stressful or something to avoid.

Lots of us are held back by our fear of not knowing enough about money or feeling like everybody else understands it better. 

Maybe you didn’t learn about it at school or at home, or perhaps grew up overhearing fretful conversations between your parents about the family finances?

All of these experiences have a part to play in how we feel about money in adulthood and may lead to a lack of confidence, among other things. 

Well, we’re here to tell you you’re not alone and not to worry. Follow these five tips and you’ll be more money confident in no time. 

1. Identify your ‘money story’

Your money story is essentially your personal understanding of money - what you think of it and how you feel about it. 

You start forming your story in childhood so early experiences will play a big part. 

For example, if you grew up in a home where money was tight and you often heard your parents worrying about their finances, you may grow up to be a serious saver, or even fearful of spending money. 

On the flip side, if your childhood was comfortable and you rarely heard conversations about money, you may feel a bit daunted and may have to start learning about finances from scratch when you leave home.

2: Challenge your beliefs

Knowing your money story will help you understand where your feelings about money come from and how they might be holding you back. 

Challenge these beliefs that limit you and replace them with something new and positive - and more importantly, true. 

For example, instead of scrimping out of fear, tell yourself that money is there to be spent as well as saved. 

Or, if you feel like you are always struggling to make ends meet, remember your current financial situation is not your permanent financial situation. 

Think about this new money story every time you make a financial decision. 

3. Create a budget and stick to it

Having a good budget will not only help you understand where your money is going, but it will also make you feel more in control - and more confident. If you don’t know where to start, try the 50/30/20 rule. 

Allocate 50% of your income to your essential spend, such as living costs, 30% to fun things you enjoy, and put 20% into savings. This approach ensures you are covering all bases -  your important outgoings, treats and putting aside money for a rainy day. 

Over time, you’ll find you have more money at the end of the month to reach your financial goals whilst still being able to enjoy yourself. 

Feel free to adjust the figures to suit your lifestyle - the important thing is you have a plan in place. 

4. Set financial goals

Giving yourself something to work towards will keep you motivated and focused. 

It could be anything - saving for a holiday, your childrens’ future, or starting your investment journey. 

The important thing is to make your goals SMART. 

No, they don’t have to be well-dressed, but they should be specific, measurable, achievable, relevant and time-bound - to give you the best chance of reaching them.

With each success and goal you achieve, your confidence will grow.

5. Talk to people

The more we share our experiences with money, the more we learn and the more comfortable we can feel with finance. 

Many of us will experience financial struggles and successes in our lives and by being open about it, we can help others going through similar experiences and boost our own understanding along the way. 

You’ll learn plenty by talking about your finances which could also prompt you to explore other financial content to help you fill any gaps in your knowledge. 

And that’s all there is to it. Practise these five simple steps and you’ll never look back.  

The information provided is financial guidance and should not be considered financial advice.