When you hear the words “financial confidence”, what do you think about?
What are some of the first answers that come to mind?
Those 2 questions are necessary and important questions that every person needs to ask themselves.
Having experience as a banker, I have found that most people are not asking themselves the proper questions when it comes to their finances and financial health. While my wife and I are not at our last stop on our financial journey, we have had some excellent experiences when it comes to money and understanding what financial health really means, and why that term is important.
Financial confidence stems from having a firm grip on both knowledge and implementation of your finances. When you experience this, you have a confidence behind your financial life that is necessary to be successful in other areas of your life.
But, financial confidence is not gained over night. Unless you are playing the lottery and actually winning, financial confidence is going to require years of sacrifices, work, and consistent execution. Pretty much like everything else in life that is worth having. There is a process to follow and there is consistency required in order to produce results year after year.
Here are 6 Key Reasons Why Financial Confidence Is Something Everyone Should Consider:
You Will Need It To Survive
This is an obvious one, I know. But surprisingly enough, not a lot of people are understanding the simple concept of mastering their finances due to the fact that they will always need it to survive. If we are going to have to be held accountable for our finances our whole entire lives, don’t you think that we should educate ourselves as much as possible and master it?
That is what financial confidence is all about, it is about learning and mastering your finances. The goal is to learn as much as you can about money each year that passes you. This way you can flip that education to help yourself and those around you.
The faster you realize that nobody is coming to save you, and the fact that you will need money to survive and thrive, the better off you will be. If you are in your 20’s reading this, or even younger, then great for you! A strong understanding of something so simple can go a long way. For those that are deeper into their financial future, have no fears.
You will be dealing with money and financial related scenarios from now, till the day you die— so, you might as well master it.
It Is A Responsibility You Owe To Yourself
We should be learning about personal finances and investments at much earlier age in our lives. I believe now with the beauty of the internet, our younger generation is getting a head start. Which is great because with the way things are changing so rapidly, they will need it.
If you are not quite there yet and don’t fall into the “younger generation category” — have no fear. I repeat this because if you are reading something like this, you are seeking progress. You are seeking to better yourself and your situation—which is exactly what produces those great long-term results.
Your time is something that you should value with the utmost importance within your life. In order to work and provide financial confidence for yourself and your family, you will need to put in hours of your time. It would be wise to protect that time and inject it into things that are going to help you grow. In the end, you owe it to yourself.
You Will Need It To Protect Yourself & Your Family
There are so many things that will arise within your lifetime that will require money. This is a primary reason as to why you should take your finances more seriously. Working as a banker, I saw direct deposits hit the bank accounts, and that same day, be set up for an automatic debit to pay off debt.
In order to take care of yourself and protect yourself in this world, you will need money. Growing up, I never thought of these things. They were legitimately not even an existing thought. I guess what I am trying to say is that if it weren’t for increasing my own personal knowledge on finances, debt, money management, investments, and more,—I would still be stuck in the same mindset.
You will need money to protect yourself and your family in this world. Don’t let another day go by where you are not taking your finances seriously.
It Can Help Bring You Peace To Begin New Chapters of Your Life
Money problems can consume a person, and that same consumption, takes them away from being present in their life. Having money trouble can cause a person to constantly be worrying, and the anxiety that stems from poor financial management decisions is what keeps people from moving into the next chapter of their lives.
Achieving financial confidence comes from adhering to a strict budget, setting strong financial goals, and most importantly, being disciplined with your actions. Taking your finances seriously requires effort and focus from your part. Things that you were used to growing up, have to be put on hold. Spending habits need to be adjusted and monitored constantly. These are not easy things to do, but they are extremely necessary if you want to reach financial confidence.
Taking control of your financial picture does not just benefit you, it can also benefit those around you. If you are truly about helping other people, achieving financial confidence is important. If you master your own finances and get a solid understanding of how money works, then you can pass that same knowledge to someone you love.
There are more people out there who do not know how to handle their finances, in comparison to people who do. This is why understanding just how important financial confidence really is in your life is so vital. It’s so vital because most people are struggling with their financial picture, and the reason that they are struggling is because they are in debt. More often than not, the clients that had debt were because they were making poor choices. They did not understand financial confidence.
Increase Your Self-Discipline
Another great reason why you should work on improving your financial picture is because in doing so, it will help you become stronger in other areas of your life.
Achieving financial confidence is not something that is easy, or is it something that happens in a short amount time.
For the grand majority of us, it requires years of dedication, focus, and self-discipline.
By creating a budget and keeping a tight grip on your money, you cultivate self-discipline. Discipline is something that is built and fortified over time. The only way to build discipline is by creating that muscle memory with all of the little things that you do each day.
As I mentioned somewhere above numerous times, your finances are going to require and demand your attention for the rest of your days. You might as well master these skills, so that you can help yourself and those around you as your life unfolds.
Final Thoughts 💭
The point in writing this, is to help people understand that money and financial confidence do not just show up. You must work at it.
Making money and achieving wealth is a skill. You must learn how to do it, then practice how to do it, fail miserably, get back up, and try again. Once you do make it, you must then learn how to manage it. It is a never ending journey and you owe it to yourself and your family to master.
These types of moves can only be made if you take your finances seriously. You must educate yourself as much as possible, and most importantly, put in the practice.
Being hands on and trying new things is how we learn, so make sure that you apply that same process with your financial picture, so that you can work your way up to financial confidence!