Confidence Project: Top 3 Tips for Building Financial Confidence

Welcome back to the Confidence Project!  Building financial confidence and transforming your life begins with three simple steps:

1) Describe the ‘money person’ you want to be and write it down.

2) Take a very small step in that direction.

3) Set a slightly bigger challenge for yourself, but still a very attainable one.

With each success you will boost your money confidence and increase your interest in money topics. If you stick to this plan and are dedicated to seeing progression in your financial attitude within 3 months you will be a changed person with newfound confidence. Before long you will be well on your way to being the ‘money person’ you described in step one.

If you’re feeling a little overwhelmed on day one of your Confidence Project – don’t fear!  I, along with the Confidence Project community, am here to help.  Have a look at the example below of one of the Project’s members and see how her steps may be applicable to you.  Of course her situation and goals may differ from your own but by using the outline detailed above and Amy’s example as a general guide, putting together your first 3 steps is simple.

Amy’s Project

Amy feels she is always behind with money and has become frustrated with what seems to be an inescapable situation.

Step 1:  Amy describes the money person she wants to be: ‘I want to be debt free and be the person who has cash for a rainy day.’  Remember it is important to write this down – having visible proof of your goals will help you to enforce them.

Step 2: Amy looks at what she will be doing in the next 7 days and sets a goal.  She knows her Saturday trip to the mall will leave her with buyer’s remorse.  So, rather than taking her credit card to the mall she takes with her a set amount of cash for lunch and an extra $20 for a ‘splurge.’  Success! Amy enjoys the social time she wants and has fun window-shopping but comes home with no regrets.  This may seem like a simple enough task – and it is!  But it leaves Amy with a sense of personal accomplishment.

Step 3:  For her 3rd step Amy cuts out one night of take-out from her food bill. This is a slightly bigger challenge for Amy but still an achievable one. This goal means Amy must be a little more organized to ensure that there is already a meal planned for Wednesday night and she has what she needs to prepare it – perhaps even making it ahead of time.

Here’s why I find this approach so important for those of you who feel stuck and why it really yields results:

Very few of us set out to be financial failures but when the economy changes, jobs change or as life changes, our bad habits catch up with us.  Financial worries can seem so daunting; like a trap you will never escape.  This strategy frees you from the trap by making clear that many money issues in your life are actually in your control and can be managed through simple measures.

By setting a big picture goal, and then making sure that the required actions for success are small and do-able, you set yourself up to succeed.  As in Amy’s case, taking small measures which result in success built her confidence and empowered her to tackle bigger issues. With this process being repeated time again, she is developing new money habits and redefining they type of “money person” she is.

It can work for you too. This feeling of empowerment, born from these small initial successes, changes the dynamics of your world and now you have the power to decide your financial destiny. It is a beautiful thing to watch and I have seen people’s lives transformed by this experience.

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One Response to “Confidence Project: Top 3 Tips for Building Financial Confidence”

  1. C.O.D.E. Conference | Fashion & Fun after Fifty Says:
    February 25th, 2013 at 1:21 pm

    [...] conference was kicked off by Mary Caracciolli, The Money Confidant, who emphasized that the day wasn’t about networking but about meeting people, building [...]

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