How To Ace Your Way To Financial Confidence
- Brainz Magazine
- Feb 15, 2024
- 5 min read
Updated: Feb 17, 2024
Written by: Sophie Hau, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Money isn't just a bunch of numbers that you crunch on a spreadsheet at the end of each month. It's a whole lot more than that. Money carries emotional weight, holding unique meanings for different individuals. While some view it as a symbol of freedom and opportunity, others associate it with stress and anxiety. This raises the question: what causes such disparity in money management among people?
Our relationship with money is deeply influenced by our upbringing and the beliefs we formed about it during our childhood.
Now, if you're the kind of person who feels anxious when it comes to saving, investing, or even checking your bank account, this article is written for you (should I even bother mentioning if you happen to be dealing with debt as well?).
I'm going to demonstrate how anyone, regardless of their mathematical abilities or current financial situation, can start building financial confidence today.
And no, the solution isn't just about being good with numbers, or constantly monitoring your bank balance.
It's about building your financial confidence
Wait a minute, what’s financial confidence? I’m glad you asked.
Let’s start with the basics. Oxford Dictionary defines self-confidence as the “belief or assurance in oneself, trusting one's abilities, judgements, or decisions''.
Financial Confidence is, therefore, the assurance in yourself to be able to manage your finances healthily without stress, regardless of the level of your income, the financial challenges along the way, and the uncertainties of life.
Building a healthy level of financial confidence is a three-step journey. In this article, I'm going to break down each step, using a tennis analogy to keep it simple, and guide you on how to develop your financial confidence.
1. Trust in others
Others believe in me before I believe in myself.
Think about professional tennis players. They didn't just wake up one day and become experts at the sport. Most of them were given a racket as soon as they could walk, often introduced by a family member who played. As they grew older, they received professional coaching to develop their skills further. These adults believed in the talent of these young kids and dedicated themselves to training them physically, technically, and mentally. The kids, in turn, trusted their parents, coaches, and mentors to guide them, even before they believed in themselves.
The same principle applies to building financial confidence. It all starts with trust in others. You learn from those who have already walked the financial path – whether it's a family member, a teacher, a coach. You learn from their skills and their knowledge. They believed in you even before you did. They lay the foundation for how to do it, extending to your financial confidence. Through their guidance and support, you can develop a wealth mindset and grow your financial well-being.
Once you've built trust in others and learned from their expertise, it's time to move to the second step.
2. Trust in myself
Confidence grows with each step of progress, the foundation to believe in yourself.
In tennis, this is where the real growth happens. When players repeatedly hit the ball, their forehand improves, they discover their unique tennis style, cultivating an athletic mindset, and something amazing starts to happen. They begin to believe in themselves.
The same principle applies to financial confidence. Once you've learned the necessary skills from others, it's time to put them into practice for your own benefit. This involves planning, setting goals, creating a conscious cash flow plan (also known as budgeting), saving, investing, and more.
As you continue to practice and gain experience, you build trust in yourself.
Yes, you might make a few financial mistakes along the way, invest in the wrong assets, or save more than you need to. But these experiences help shape your financial identity and determine the type of investor you want to become.
And, above all, you have the innate ability to filter out the noise—the unsolicited opinions of others dictating what you should do with your money or passing judgment on your financial choices.
With your new actions driven by your confidence, you become unstoppable, it's time to move to the third and final step.
3. Trust in life
Once junior tennis players start winning a few games and gaining recognition as champions, another breakthrough happens. They begin believing in their potential to become professionals, reach the top 100 rankings, and win a Grand Slam tournament… They envision a life filled with dreams: securing sponsorships, traveling the world, supporting their families, and getting paid to play their favorite sport. When they step onto the court, they exude confidence, knowing that their abilities surpass their opponents.
The same principle applies to financial confidence. Once you've achieved financial health, are knowledgeable of your financial situation, and built a solid financial portfolio, you open up a world of possibilities. You can start living your dream life and explore new avenues that you couldn't have imagined before. Perhaps it's living abroad, asking for a raise, changing careers, starting a side hustle, retiring earlier, funding your children's education, buying your dream house, or donating to a cause you support.
The world is yours.
Building financial confidence not only allows you to meet your financial needs, but also enables you to dream bigger and set new goals. These dreams may have seemed unreachable if you had not developed your financial confidence or athletic mindset.
Remember, you can only dream about things you believe have a hint of possibility.
It's in that belief that the beauty of confidence-building lies. It's not about arrogance or knowing it all. In fact, the true champions, both in tennis and in life, are incredibly humble. They are always eager to learn, fact-check information, and continuously seek growth and improvement.
Are you ready to build your financial confidence?
Not sure about your financial health? Get an Annual Money Health Check. Every month, I offer two free 60-minute Money Health Check sessions. Apply here.
Sophie Hau, Executive Contributor Brainz Magazine
Sophie Hau is a Certified Money Coach (CMC)® who helps overspenders develop a healthy money mindset to create a wealthy life.
With over 15 years of experience working in non-profit, corporate, and entrepreneurship spanning 3 continents, her diverse career has led her to create a company bridging personal finances, coaching, and psychology: Moneysophy. In Ancient Greek, sophy (sophia) means "wisdom" and "technical skill." The mission is simple: popularising the tandem mindset + tools for true wealth.
