8 Integral Things to do to Build your Financial Confidence

How do you feel about your money? Are you often lost in the jargon of savings and investing?

Do you even consider managing your finances?

Well, if not, don’t worry, you are definitely not alone.

Many people feel equally lost about the question of how to manage their finances. 

Yes, financial ideas can be challenging, but the only thing that gets you through this mess is confidence.

Financial confidence is all about taking charge of your finances and directing them in the right direction to accomplish your goals. 

But, the problem is: How can you achieve your financial confidence?

Surely by practicing more. It may all seem confusing at first, but as you finally start learning and put your learnings to actual work, the basics would become handy.

If you are ready to take off your financial journey, follow the following tips to efficiently tackle your budgeting, saving, and investing goals.
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Ways to be confident about your money/finances: 

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All you need is courage- start NOW 
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The best thing you’ll ever do on your financial journey is simply starting. 

Let go of the doubts and just start somewhere. Is your goal to double your income?

Work for it. Have you always wanted to try out investing? Start today.

Want to build your own home in the next 5 years? Lay out a plan. Are you under debt? Find finances to tackle it. 

Whatever your goal is, just start working towards it. You can learn on the way. 

Remember that you do not need to know everything about money.

No one does, and every successful person has his/her own way of achieving things.

How you plan for yourself depends on you. Every time you get stuck somewhere, just ask for help, look online, network with experts, etc.. 

Start believing that you are good with money - learn, plan, and implement.

Make sure you are learning about money every day.

Lay out your plans clearly and see how long they might take to accomplish and then set up separate funds for each of them.

If spending is a problem for you, then make your savings automated.

There should be no room for excuses. Every possible answer can be found on the internet - all you need's a little courage to start. 
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Financial literacy is the key 
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When you finally start to take charge of your finances, it is important to educate yourself.

‍You don’t have to already know everything. Just keep learning and understanding the concept of money. 

If you love books, then start reading finance books by experts. Finance podcasts, YouTube channels, blogs, etc, are all also a great way to improve your knowledge about money. 

As you will keep learning, there will be many concepts that would be simply new to you. Look them up, memorise them, and add them in your financial steps.

This way, you will also understand your financial take on certain things.

For example, you can figure out which investments would interest you or what type of budget and saving plan you will be committing to. 

Also, to master the art of money, consistency is important.

Make sure that your healthy financial habits are a part of your daily routine. This will not only help you expand your money but also enhance your confidence. 
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Budget basics and the emergency fund 
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No doubt, basics are always essential, and when it comes to finance, your budget and emergency fund are the most important things. 

For the budget, you can try out various things and then find your interest.

For instance, you might or might not like writing down your budget. In such a case, try to look for online budgeting apps like the Mint app to keep track of your finances. 

It is always a good idea to discuss your budget with some expert, friend, or family member that you trust. If that doesn’t sit well with you, you can also plan out things on your own. 

For emergency funds, insurance & basic savings are a must. Options like gold or digital gold, FDs, etc. can also be beneficial.

To know more about emergency funds, you can refer to this article. 
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Preconceived notions about money are nothing but stressful 
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What you think about money and your mindset do affect your financial decisions.

If you constantly worry about losing money, growing money, or anything similar, even a good amount of wealth won’t satisfy you. 

Some people are often negative about money.

They might make you believe that earning money is difficult, it is better if inherited, investing is too risky, etc.. You must stay away from that thinking if you want to be at least anywhere close to a successful personal finance manager. 

To lighten up your money, you can try journaling about money - your goals, wants, perceptions, and just general outlook about finance - anything!

Decide what you want to and you already feel about your finances and work on it.

Remember that to grow money, you need money. It is essential to focus on first earning money, saving it diligently, and then beginning your experiments.
 

Long-term focus 
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When you invest, have a long-term outlook.

The reason is, when your aim is to generate wealth, you can not do so with a highly risk-averse attitude.

FDs or too secured investments won’t generate your wealth. You will have to eventually try out active investing in the market, in your skills, etc. 

For instance, while FDs are often preferred and are definitely a much safer alternative, they might not help you beat inflation.

On the other hand, stocks are volatile and do fluctuate on a daily basis, but on average, over the longer run, such volatility has always given higher returns.

There might be higher risk, but that is accompanied by higher returns. 

So, be consistent with your investments and do not let yourself get too discouraged or encouraged by short-term downturns or upturns, respectively. 

And yes, do make sure to even out the risk in your portfolio. You need cushions like FDs, gold investments, etc, for your other risky investments- but not rely ‘just’ on them. 
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The right time to invest is NOW 
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Are you still doubting yourself or postponing investments because ‘this’ is not the time?

Well, there will never be a ‘perfect timing’- all that’s there are the current opportunities.

Make sure to make wise use of them and ace your financial planning. 
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Do not stick to just one job/income source
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We previously discussed that to grow money, you need money.

In the current world, sticking to just one source of income is not anywhere close to being enough.

If you follow any finance influencer, you already know the importance of a variety of income sources.  

So, maintain at least two such sources of income, and if you want, create a separate budget plan for both.

The best way to achieve this is to find your interest, get certified, and start a side hustle. 
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Get rid of that debt 
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Starting your finance journey with 0 debt is as important as maintaining a positive attitude towards money.

Be it credit card debt, home loan, study loan, gold loan or whatever - if it is bothering you and not letting your money grow further, then you no, you don’t need it. 

To get rid of debt faster, start with the one that bothers and costs you the most. While you are at it, start saving and investing in options that require low minimum amounts. Gold, FDs, RBI Bonds, NPS, etc. are some good options. 

Once you are done with debt, start investing more actively and switch to high return generating assets. This will help you regain your lost confidence in managing your finances. 

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Conclusion 
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Maintaining your finances won’t be a big deal once you commit to it and align your actions with your goals.

To build your financial confidence, a good mindset, along with active saving and investment management, is crucial. Follow the above-mentioned tips and direct your money the way you want!
 

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