Most women feel uncomfortable when it comes to managing money. Setting financial goals or planning a financial future is something that women tend to shy away from. There can be a discussion on whether this was why there was such a rampant gender pay gap, but that is a topic for another day. Women in the 21st century are matching up to their male counterparts in every aspect. Therefore, to make better financial decisions and reach their financial goals, women must improve their financial confidence. Hence in this article, we will try to understand what financial confidence is and how women can improve it to make better financial decisions.
What Is Financial Confidence
Just like regular confidence, financial confidence has several definitions. For most, it means being in control of one’s own finances to reach the set financial goals. If you do not gain financial confidence in life, you are less likely to make crucial decisions regarding your finances and achieve the set financial goals.
How Can Women Improve Financial Confidence
While everyone needs to be confident about their finances, it is even more vital for women. The gender pay gap is still prevalent; hence, women need to work harder, spend less, and save more if they wish to have the same amount of money as men. Therefore, women must improve their financial confidence if they want to make better financial decisions. Here are a few tricks that women can take to achieve financial success:
Build a Practical Financial Plan
A practical and realistic financial plan can help you plan your future. Merely thinking or dreaming about it will not be enough. Put it in writing to make it official. This will give you something to work towards and measure your progress. You must also keep it realistic if you wish to see real success. For example, if you say that you wish to save a million dollars in the next year right at the outset, it might sound unrealistic.
Stick To Your Budget
A Certified Financial Planner (CFP) Board study found that people with a budget feel better about their finances and control their money. About 62% of the people said that they felt more in control, while nearly 55% felt confident with a budget.
You need not create a budget that is restrictive or overwhelming. A budget can tell you where your money needs to go and the amount you can spare. It can be understood as a blueprint for your money and help improve your financial confidence.
Read Also: Women Personal Finance: How to Manage Your Personal Finances
Keep an Emergency Fund
Keeping some money aside for an emergency fund can help you feel secure about your finances and gain financial confidence. If you lose your job or find a medical emergency at home, an emergency fund can come in handy.
Even if you know everything about personal finance, there is always something new to learn. Therefore, keep educating yourself to improve your financial future. It will empower you and help you make tough decisions regarding money.
Understand Your Beliefs About Money
Try to understand your mindset when it comes to money. Your money story can be crucial in building and improving your financial confidence. Figure out your money-related beliefs right from childhood. How your parents treat money can also have an impact on your views. While these factors shaped your thoughts, it does not mean that you cannot change them.
Have Smaller Goals
You cannot change your financial condition overnight. You might feel overwhelmed when you set big goals. Therefore, try setting financial goals that are smaller and celebrate these small wins. Be proud of your progress, which will propel you forward while improving your financial confidence.
Have Money Discussions
Most women feel uncomfortable while discussing money or money-related topics. A Fidelity study found that only 47% of women willingly discuss money. However, it is high time that women move past such stigmas and have healthy discussions regarding money. Try to surround yourself with people who have similar financial goals as you. As you become more comfortable discussing such topics, you will find others on the same page.
Seek Outside Help
Women must never hesitate to ask for help when it comes to money. If you have issues with investing, cannot figure out how to budget, or need someone to look at your finances, all you need to do is ask. Try to look for experts who specialize in areas you need help with. You can learn from them if you wish to improve your financial confidence.
Read Also: The Importance of Asking for Help
Find the Right Tools
There are hundreds of financial tools that you can find online. Whether it is budgeting, investing, or personal finances, a quick online search will give you several money tools that can help you reach your goals.
Recite Money Affirmations
Self-talk can have a significant impact on your confidence. Hence, you must recite money affirmations when it comes to improving your financial confidence. You may start by saying, “I am good with my money.” While it may sound untrue initially, you will become what you say if you keep affirming it.
If you wish to enjoy a successful financial life, then confidence is the key. Gone are those days when it was believed that women should not handle money or make any money decisions. Therefore, try to educate and empower yourself. Be ready to take charge of your finances—it will ultimately help you reach your financial goals.
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