Remember the college textbook you bought for a class that you never cracked open? It still sits there, mocking you with its pristine spine and unblemished pages. Now replace “textbook” with “financial plan” and you’ve got the picture for many of us. This is a symptom of financial stress.
What Financial Confidence is not.
When it comes to personal finance, of course we know we should plan. We buy books and download apps, yet somehow the gap between knowing and doing only gets wider with time. The mention of the words “budget” or “retirement planning” only reminds you of your failure to follow through and creates the sudden urge to change the conversation. That is financial anxiety, my friend, and it’s surprisingly common. You are not alone – over 70% of Americans experience stress about money, often stemming from a lack of confidence in managing their finances.
Financial confidence isn’t about suddenly turning into a spreadsheet superhero or becoming a budgeting expert; it’s about building trust with your money, a slow dance of understanding, vulnerability, and a dash of self-forgiveness. Search Google and most blogs will tell you to track your spending and cut expenses, ignoring the emotional connection we have to our money.
Why do we avoid looking at our bank statements? Why do we panic at the mention of “budgeting”? “Track every penny”, they say; build spreadsheets, and even invest in complicated financial products. But let’s be real, who has the time or energy for that? I can tell you I certainly don’t. It’s not about having a six-figure income or mastering complex investment strategies. Even those with high incomes face financial anxieties.
How to build confidence.
So, how do we build this confidence in managing our money? It starts with building a healthy relationship with money, one that’s based on understanding, accountability, and a dash of self-compassion. Beginning with understanding your money story. That narrative woven from childhood experiences, societal expectations, and even those damaging comparisons we make on Instagram. The good news is: financial confidence can be achieved with small, sustainable actions that fit your life, not some rigid one-size-fits-all plan (there’s no such thing).
How do we rewrite our money story?
You cannot force a sustainable debt-to-riches transformation. It’s about tiny, intentional steps:
- Embrace the “Money Date”: Schedule a regular get-together with your bank statements. See where your money goes, without judgment. Track it in a way that speaks to you, bullet points or colorful pie charts, anything that sparks curiosity, not dread.
- Celebrate your wins, big and small. Paid off a credit card? Saved up for that dream vacation? High-fived yourself for sticking to your budget? Every step forward, no matter how small, deserves a celebration. Acknowledging your progress will boost your confidence and keep you motivated on the path towards financial well-being.
- Find Your Financial Tribe: Money can be a lonely topic, but it doesn’t have to be. Surround yourself with people who support your financial goals, understand your struggles, and won’t judge your latte addiction. Online communities, financial coaches, or even a supportive friend can make a world of difference.
- Focus on Progress, Not Perfection: We all mess up sometimes. Missed a budget goal? Bought that extra pair of shoes? Don’t beat yourself up. Instead, use it as a learning opportunity and adjust your plan.
Remember, progress, not perfection, is the key to building lasting confidence. Financial confidence is a journey, not a destination. It’s about building a healthier relationship with your money, one that’s based on understanding, trust, and maybe even a little bit of fun. So, ditch the guilt, embrace the “why” and take the first step to build your confidence.
As a first step, why don’t you take The Money Wellness Quiz and see how you do? I’ll see you on the other side.