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As inflation rises, financial confidence falls. According to a recent New York Life poll, 62% of Americans are financially confident, up from 69% in January. In the current bout of high inflation, Americans face more financial uncertainty than ever. But how can we counteract this?
“Instead of worrying about what you cannot control, direct your energy to what you can create.” – Roy T. Bennett.
This quote is easier to read than to follow! However, in the spirit of regaining power in an economic market that can leave us feeling powerless, here are three major steps that can lead us to a greater sense of personal and financial confidence:
- Make efficient decisions
- Follow up with a realistic plan
- Have the willpower to take control
As an investor, you cannot control the stock market or rising gas prices. But you are sitting in the driver’s seat with your self-confidence, your self-assurance and your self-determination. Confidence means acceptance and belief in your strengths, abilities and skills. It’s not innate; it can be farmed and refined over time.
Here are three guiding attributes that are fundamental to trust. An insight into these concepts can empower you to strive for financial freedom and help you succeed in all aspects of your life.
Setbacks and obstacles are the reason we stop, as we often focus on the negative outcomes that are holding us back. To feel growth, we must see and believe in our ability to succeed and progress.
One technique to gain self-awareness is journaling. I know journaling feels like an unrealistic task, but it doesn’t have to be an arduous process if you don’t want to. It can be as simple as reaching for your phone to jot down notes whenever you see, hear, or think about something that moves and inspires you. It really can be as simple as taking a screenshot of something that evokes deep emotions in you, or writing down a memory or reflection. The goal is to connect with thoughts and emotions within us that we would normally move on from. When we journal, we give them space to develop. I have a notebook on my phone, a notebook on my bedside table and a photo folder on my phone that has quotes, photos or videos that inspire confidence and motivation in me.
Another technique can be as simple as setting a time each morning, even just a minute, to think and set yourself an intention for the day. There is no wrong beginning. You must give yourself the chance to create that growth by taking proactive steps to build your self-confidence.
See also: Why It’s Time to Dust That Journal
As you gather more information on a topic, you acquire more knowledge. Still, when it comes to Financial Self-Awareness (FSA), it’s a little less about financial literacy in general and more about your financial situation. Many people can recite personal finance books or the metrics and formulas for excellent investment advice, but if you don’t know what your wealth is today, how can you make decisions about your future?
Take some time to write down your past successes and failures with money; this will give you clarity about your “why”. Once you have reviewed your financial history and developed a deeper understanding, you can make the necessary decisions to achieve your current and future goals. This clarity and intentionality will help you build more confidence.
This self-esteem isn’t based on knowing you’re always right; It’s about getting back up after a fall and still moving forward. We all have strengths, so use them and make sure you implement them on a daily basis. We all have moments of doubt, too, and we can move forward by taking advantage of the moments of certainty as we review our achievements. When was your last moment of success? Think of everything from having the courage to have a difficult conversation with someone in your life to completing a painting, book, or degree. Achievements come in all sizes, so celebrate them and remember your achievements often.
Historically, money has been a taboo subject, especially for women. I grew up thinking that talking about money was rude or inappropriate. As I got older I (thankfully) stopped following this rule, which prompted me to search for more information and continue to learn and understand it. Most people don’t talk about it enough, which is one of the reasons why most people have poor money management skills. This then turns into shame and embarrassment, which can prevent us from being honest with money and seeking the right help. The more you talk about money, the more comfortable you will feel; Consistency is essential. Having a financial plan may sound like hassle at first, but it will save you from several headaches in the future. A financial plan gives you a goal to track and ultimately build your economic confidence.
See also: 12 Ways to Boost Your Confidence in 2022
Determination is usually tied to actions like “I am determined to learn another language,” which requires steps to achieve them. That is what self-determination is: building a set of skills to achieve those goals.
What skills do you need to build on the most? Here are some to think about: decision-making, problem-solving, goal setting, and self-advocacy. Psychologists Edward Deci and Richard Ryan developed a theory of motivation that suggested that people tend to be driven by need to grow and seek fulfilment. Building life skills that expand your knowledge enables the independence you seek, and increased relationships and interactions with others also lead to a high level of self-determination.
See also: How resilience led me to success
Take control of your financial journey by allowing yourself flexibility. Confidence means understanding your strengths and weaknesses, which change over time. It’s okay not to be an expert on everything financial; There are experts in this field who outsource help from others. Keep track of your finances with financial tools like apps and calendar reminders.
Do you want to save more money? Use a budgeting app like Mint and schedule a time to review your budget regularly. A visual representation of your goals and progress will help you stay on track and stay motivated.
According to a study by the National Bureau of Economic Research, nearly 80% of women struggle with low self-esteem and are reluctant to speak up for themselves at work. This means that four out of five women are slowed down in their career advancement by a lack of self-confidence and lack of visibility. Let’s change these stats and help each other boost our confidence. Remember that applying these steps takes practice. Start with what feels most comfortable and move on to the next. When you become financially and personally confident, you can have confidence in your abilities to successfully manage your wealth and your life. As you deepen your confidence, confidence, and empowerment, it becomes phenomenally easier to make efficient decisions, follow them with a plan of action, and act with conviction. While inflation creates uncertainty for many, your financial confidence need not be shaken by external factors.