Having financial confidence is something that can come and go. But there are lots of things you can do to help yourself feel more confident and secure with your finances as you go throughout your life.
When we first had kids, we were poor. I mean, penniless. The first time I began budgeting and looking at my money, we were living off $25,000 a year with no debt and four mouths to feed. Not to mention, we lived in CA!
During that time, we were the most confident in our family and the most confident in our finances. We were happy because of that confidence.
As I look back on that time, I realized that that confidence came from many different places. First and for most that confidence came from inside. It came from the peace in my heart that we were doing what we were supposed to do.
Now, when I say that we knew what we were supposed to do, I mean that we were budgeting, we were saving, and we were sacrificing. Confidence in finances only comes when you are doing those three things, when you have a budget when you are saving with a purpose, and when you are sacrificing for the higher goal.
I also saw that confidence coming from people around me. My husband and I were on the same page financially; we were both moving toward similar goals and encouraging each other. When you have encouraging people around you, your confidence will always be higher.
If you are trying to get your financial confidence higher, there are some things you can do to help.
6 Tasks To Encourage Financial Confidence
Here are six things that you can regularly do to create and help yourself to feel confident in your finances and their future.
Create a budget
One of the best ways for you to feel confident in your finances is to create a budget where every part of your income has a home. That means that you put everything you earn in a place on your budget. This is also known as a 0 balance budget. This type of budget helps you to see what you are spending money on and how you can save for things, so you’re not so stressed if something happens.
Be sure you budget for all your expenses and re-evaluate often
Once you have your budget wholly set, re-evaluate your budget at least once a week to be sure it is balanced. Make sure you are covered in all areas, so you feel the financial confidence of saving for rainy days. Don’t be afraid to move things around if something is not working anymore. This will help to keep you from overspending and busting your budget.
Have an accountability partner or partners
Having someone to help you through your journey is priceless. If you have a spouse, they are a great person to report to each week at the start and monthly after you have it set up consistently.
If you are looking for some support and some help in building your confidence by having an accountability partner, check out onup.com. They have created a beautiful community of people who are trying to take control of their finances and who are building their confidence.
They want to help people to take steps toward having confidence. This confidence happens when people take control of their finances and understand them through confidence in their choices.
Have a goal
Set a goal for yourself., even if it is to save $100. A goal will help you stay focused. It will also help you to prioritize your finances and your purchases.
Start small with your goals and build them up. You will begin to see some pretty amazing things as you do that! We were able to save money to buy a new car and take a trip to Washington, DC, while we were on such a small budget. We did this through saving. And we did that for over a year, but we had a goal and worked toward it together.
Give yourself grace
You will make mistakes! You will not budget enough money. There will be problems with your budget. You need to expect these, and when they happen, you need to be ok with it.
When you give yourself a chance to learn from your mistakes, you will make more progress, and you will be more confident in the fixes you make. You will be able to fix things better, and your confidence in yourself and your finances will improve.
Be sure you’re treating yourself for being on a budget
Be sure you work into your budget play money. This is especially important if you tend to be a spender. It will help you not to feel like your money restricts you. It will help you have less money stress. Having money you can spend will also help you to feel confident in your spending while saving skills. You feel good about saving, but you still feel free to spend a little.
More posts that encourage financial confidence from Living a Frugal Life