Building confidence takes time and it takes action. Building financial confidence is just the same. It takes time and it takes action. Confidence is “the feeling or belief that one can rely on someone or something.” Let’s start to build financial confidence.
Financial confidence is the belief that you can rely on your finances, your experiences, your decisions, and any other action or inaction that affects you financially.
Are you unsure about your financial future? Are you insecure about some of the decisions you made? Are you unsure whether or not you’ll be financially ok 10 years from now? Are you unsure of your finances?
If you said No to any of these questions, your financial confidence is likely low. Like I stated earlier, building financial confidence takes time and it takes action. Time is something we don’t have much of so it’s best to start sooner rather than later. Action speaks for itself. You have to commit to this! Here are a few steps I took to build my financial confidence.
Change Your Mindset
You might be thinking that becoming rich quick is the best way to becoming financially independent and build that financial confidence. I thought that too. I wanted to get rich quick and try to make as much money as possible so I can drink cocktails on the beach. What I learned in my 45+ years of living is that nothing comes quick and nothing comes easy. And neither does money. You have to work hard and smart. No shortcuts!
Build Your Foundation
What I mean by solid foundation is you need to build you up. You need to build your knowledge, experience, and wisdom so you can make the best life decisions for you. This takes the most time because like the saying goes, with time comes wisdom. It takes time to build your foundation. So, instead of trying to get rich quick, focus on the things you can do for yourself that will benefit you in the future. This could mean getting an education, getting work experience, going to a trade school, living overseas, joining the military, researching, and so on.
If you have a good foundation and you know where you want to be in life, you have a path. You know what you need to accomplish to get to the next step. Along, you’ll build character, morals, and ethics. You’ll know what career path you’ll be taking. You’ll be focused on what you need to do to make that happen. The decisions you make today will shape you and your future.
Build Financial Wisdom
When you build your self-foundation, the money will come. What you do with that money is up to you. You can spend it, save it, or invest it. There is no right or wrong answer. The beauty is that no matter what you do, you’re going to gain wisdom from it. You might experience a bad purchase and you know you’ll won’t do that again. You might say that investing in a certain stock was a bad idea and you won’t do that again. Or you could say the opposite, that a certain was a good idea, and you’ll continue investing. Regardless of the outcome, each decision you make will you give you an experience you didn’t have before.
The financial wisdom you gain in your life, you’re going to learn the value of money. You’ll start spending wisely. You’re going to invest more. You’re going to put more into retirement accounts and save. You’re going to be looking ahead and forward to the future. You’re going to take risks like investing in the stock market or real estate. This is all experiences and wisdom you’re going to gain.
I started building my financial wisdom early on. From working in high school and in college to making sure I leverage 401K programs at work, spending wisely, investing in real estate, investing in stocks, and more. It wasn’t easy and it still isn’t easy. But the wisdom I gained throughout my years has helped me make good financial decisions.
When the money comes and the wisdom follows, your financial confidence will grow. You’re going to know more about finances and how money works. You’re going to research more about ways to grow your money, investment options, and everything else that can impact your finances. You’re going to be more intimate about your own finances, how you spend your money, and how to use your money.
Ones who have the best confidence are the ones who live it. If you’re not in a good financial state, you’re probably not going to have a high financial confidence level. But if you are in a good state where you’re debit is under control and manageable or have no debt, have stable income, have additional sources of income, have emergency funds, have retirement accounts, etc. you’re probably going to have a higher level of financial confidence.
I love watching videos and reading articles of those who share their financial independence story and you can tell that their financial confidence levels are high. They were able to make it and they are able to share their wisdom. And I appreciate all the comments you reply with and sharing your financial independence stories. I can tell that you all have financial confidence.
As I said earlier, there are no shortcuts. This is a long journey and it takes time and you’ll gain valuable experience. Everyone is different and your financial situation is not the same as the next person. Your journey will have a different path but I believe that if you change your mindset, build your foundation, and build your financial wisdom, you will build financial confidence. Just try it out…the next time you’re at the dinner table and the topic about finances come up, let me know how your conversation goes. Are you the intimidated one or the one giving your 2 cents? If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook.