Fear and lack of confidence around money issues is very common. There is much shame and self recrimination; “I should know more…yet I just cannot be bothered.” Sound familiar? The thought of improving your financial situation can be daunting.
How does one tackle this monumental challenge? We discussed this in the Massachusetts Conference for Women’s online radio show “Office Hours” on August 21, and following are some steps to start building your financial confidence. Listen to the full 30-minute show, hosted by Samantha Ettus, here.
Start with yourself. Gather your documents. Get well organized. Become fully informed, achieving a position of knowing your finances intimately. The goal here is to completely understand your situation. Know where you stand and where you want to go.
Strive to save 5% more than you are presently, and invest that money.
No more budgets. From now on, it is to be known as a spending plan. With intention, create your own personalized spending plan. Examine your commitment to save for your future. In addition, stay healthy and work longer.
What else can be effective steps?
Enlist the support of your family. Make the household finances a collaborative effort. Teach your children the wisdom of earning, saving and investing their money. Teach them about the heaviness of debt. Plan for catastrophic events by educating yourself on the type and the amount of insurance you may need. Be sure to draft a will, living will and power of attorney.
Most important, build up your self confidence. Ask yourself – what is stopping me now? Do I need help with this issue? Seek professional help if you know that will make a difference.
Cultivate a belief in your ability to take action. Invest in your financial well being. Envision what is possible and just get started.
I wish you much prosperity in your journey.
Diane MacPhee is a Certified Financial Planner as well as a Professional Certified Coach. She is a nationally recognized business coach and has been featured in a number of our financial planning journals over the last twenty years. Diane has written several practice management columns and is a sought after speaker as well. She has appeared on CNBC as well as radio. Connect with Diane here.