Do you know the interest rates from your payday loans? Your mortgage rate from your tax rebate? How about talking about money? Do you have a good understanding of your current financial situation? If you answered no to any of these questions then you’re not alone!
The majority of us not only find our finances difficult to understand, but we also find the prospect of managing our finances properly, completely overwhelming. Maybe you’re embarrassed by your debts, or you have no idea where your money goes each month – whatever your current financial situation or thoughts about money, increasing your financial confidence can completely transform your fiscal outlook.
Let’s explore some straightforward ways you can make yourself financially confident.
Take your savings seriously
Do you have a savings plan in place? Or do you simply move across any cash you have at the end of the month into a savings account? Taking your savings seriously and making a conscious effort to reach your savings goals of a holiday, a house deposit, a wedding, or even traveling will make you feel more confident with your money and improve your money mindset.
Taking out an ISA is a simple and effective way to enhance your attitude towards saving – Wealthify can share more about this clever way of saving, here. Individual savings accounts allow savers to save or invest up to £20K each year in a tax-efficient way. Giving you more control over your savings and an effortless approach to investing. And the more control you have over your money, the more financially confident you’ll feel.
Face your finances head-on
The more you know about your current financial situation, the better you’ll feel about it. Facing up to all your financial anxiety can feel overwhelming, but the more you know, the better prepared you’ll be to handle your current situation and work out a plan to move forward with your finances. So, go through your accounts, go through your direct debits, your monthly outcome and take a look at those looming debts – it’s daunting but worth it!
Take a look at your income
Entrepreneur has an article to answer questions such as: Do you know how much you’re really bringing in each month? It’s easy to glance at your payslip, but have you considered any benefits you’re receiving? The interest on any accounts, or the money you earn from your little side hustle? The more you know, the stronger your financial confidence will be.
Take a look at your expenses
You must be brutal here. You’ll include your rent and your bills, but don’t forget to include the little things – those late-night trips to the supermarket, all those coffees you get on the way to work. Figuring out your expenses, comparing them against your income, and highlighting where you could potentially save money will certainly give you a financial confidence boost and help you plan for the month ahead.
Prioritize an emergency fund
You may have an ISA or a saving account, but saving for a rainy day with an emergency fund is an essential step toward financial confidence. Including your emergency fund within your monthly budget means you’ll be able to get yourself out of a financial jam without plunging yourself into more debt.
Feeling financially confident yet?