In many aspects of life, confidence is key. But if there’s one category where that emotion is often lacking, it’s financial. Fortunately, April is National Financial Literacy Month. To celebrate, this month’s podcast episode features Jennifer Barrett, author of Think Like a Breadwinner. In addition, I’m sharing some tips of my own for how you can boost your financial confidence to shift your money mindset.
Five steps you can take right now to boost your financial confidence:
1. Face Your Finances
Regularly revisiting your budget, checking in on your accounts, and tracking your net worth are three tasks that any financial advisor would recommend. And for good reason. These tasks may seem simplistic, but they provide you with a solid financial foundation. Moreover, getting a routine down for the basics will also help boost your financial confidence when it comes to tackling larger tasks.
2. Educate Yourself
There is an incredible number of ways to improve your financial literacy. And with the rise of personal finance blogs, podcasts, books, and courses, it’s easier than ever to get your hands on the information you need.
For instance, Curtis Financial Planning’s website contains the Of Independent Means blog and the Financial Finesse podcast, as well as several free downloads and other resources. In addition, the Balance has compiled a handy list of the 10 best personal finance books of 2021.
3. Know Your Worth
Have you gone a year or more without a cost-of-living raise? Or have you recently changed positions, taken on more responsibilities, or spent time honing your skills? If so, it’s time to negotiate a higher salary. Indeed, growing the gap between your expenses and your income will boost your financial confidence. However, it can also help you meet many common financial goals.
Just be sure to do your research to find out how much others in your position are making. For example, websites like Glassdoor will give you the average salary for your position and location. In addition, you can add in your years of experience to get a more specific answer.
4. Set Financial Goals
Two common financial goals are putting together a budget or spending plan and paying down debt. These two tasks go hand-in-hand, and they’re vital for a healthy financial future. Other examples of financial goals include:
• Starting an emergency fund
• Saving for retirement
• Paying off your mortgage
• Funding a dream vacation
Setting financial goals offers a daily reminder of what matters more than emotional spending or convenience purchases. No matter your financial goals, facing your finances, increasing your knowledge, and knowing what you’re worth can help you get there.
5. Partner With a Financial Advisor
Nothing offers a bigger, better, or faster financial confidence boost than partnering with a knowledgeable financial advisor. To get started and cross one thing off your financial to-do list, download The Happiness Spreadsheet. This incredible free resource offers a unique approach to budgeting by aligning your spending plan with your values.