Is The Bad Management Of Your Finances Messing With Your Confidence?
Financial concerns and (in)stability can be a major source of personal dissatisfaction, feelings of uneasiness and unhappiness. As a financial consultant, I often meet people with emotional and psychological issues stemming from their financial problems, which, unfortunately, often results in anxiety, depression and psychosomatic conditions.
Since I’ve noticed this pattern in 90 percent of the cases, I think that it’s essential that people adopt healthier habits and attitudes when it comes to their finances in order to ensure their well-being.
Finances And Confidence
Although most people don’t realise it, money and self-awareness are connected through people’s perception of self-worth.
A study has shown that people with more money are actually more self-confident. They spend less time feeling sorry for themselves, believe that they can bounce back from financial failure and are aware of possible opportunities around them that they aren’t afraid to seize.
Confident people ask for more money because they are aware of their worth and they achieve their financial goals quicker and easier.
Thus, the way you perceive yourself and your self-worth reflects on the way you manage your finances.
The more you value yourself and the more confident you are in your abilities to achieve financial stability, the more money you will make because of your self-awareness and capability.
On the other hand, if you don’t value and believe in yourself, you won’t ask for more money and you may even miss profitable opportunities. Consequently, the lack of financial stability will reinforce your initial attitudes towards yourself and your worth, leaving you to swirl in this vicious circle.
I’ve seen people getting out of tough financial crises owing to their determination, persistence, excellent money management skills and self-confidence. I’ve also seen people getting into debt because of their hesitancy, poor money management and low self-esteem.
Considering all of this, we may come to the conclusion that you can attain financial stability by improving your sense of self-worth and adopting positive and healthy financial habits.
Here are several tips on how to achieve this that I share with my clients.
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Be More Decisive And Resolute
Finance is not merely about making money. It’s about achieving our deep goals and protecting the fruits of our labour. It’s about stewardship and, therefore, about achieving the good society. – Robert J. Shiller
Boosting your self-confidence often entails going after what you want even if it seems scary and challenging. You need to seize the opportunities that can help you achieve your life goals.
If you’ve wanted a raise for a really long time, you need to believe that you deserve it and ask for it. By taking action, you will show yourself that you are able to achieve your goals, which will boost your self-esteem and self-worth and consequently increase your savings.
Eventually, you will become more confident in your skills to manage and make money, which is a safe step towards success.
Control Your Budget
Beware of little expenses. A small leak will sink a great ship. – Benjamin Franklin
You need to be in control of your money. Feeling in control will help you manage your finances more efficiently and stay on top of your spending.
You need to have an objective view of your income and expenditure. I always advise putting everything on paper. Write down all of your expenses and take a look at them. Are all of them necessary? Probably not. You should eliminate unnecessary costs, which can actually save you a lot of money. As Mr. Franklin said, keep an eye out for all those small expenses that can drain your account.
Once you’ve gained a deeper insight into your finances and identified your spending patterns, you’ll be able to make better decisions and truly be in control.
Manage Your Expectations
A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. – Suze Orman
I’ve heard a lot of my clients asking questions like “what if the market goes down and I lose all of my savings?” or “what if I started contributing to my retirement fund too late?”. Obsessing over questions that you cannot answer is just a way of torturing yourself.
I also had clients with unrealistic expectations that were a major source of disappointment and anxiety. What you need to do is manage your expectations and stop worrying so much about the future.
Take a realistic view of your financial situation, get on top of your spending and start saving early. There are people who believe that they have all the time in the world to start building their retirement funds. On the other hand, there are those who keep stressing about it every second of every day.
I often advise my clients to take an age pension income test to see where they stand. If you’re eligible for a pension, you can relax and stop stressing about it. If not, you can start thinking about what you can do to improve your situation. The bottom line is – don’t worry in advance, but start preparing on time.
Your financial situation is one of the biggest concerns in one’s life and often a source of anxiety. However, if you value yourself and your abilities, others will too, which will enable you to earn more money and attain financial stability.
