5 Ways to Build Confidence in Your Financial Choices

Finances are about more than just numbers. Your beliefs, habits and insecurities may play as much of a part in your fiscal health as your cashflow. Just like Rome, confidence in your financial choices is not built in a day, but many financial experts believe that a few simple steps can help boost your belief in yourself. 

Seek advice from experts 
Learning from financial professionals is usually a great way to breathe a sigh of relief about your situation. Especially if you struggle to trust your personal money instincts, gaining insight from a trusted adviser can be an actionable step toward financial confidence. With expertise commonly comes solutions and solutions tend to breed more self-trust in those ready to build security in their financial choices.  

Make a plan and stick to it 
After the uncertainty of the COVID-19 pandemic*, many people may be craving the stability of a financial plan to restore confidence in their money choices. Regardless of your income, it can be difficult to feel assured about your financial moves if you don’t have a roadmap for your money. Even more important is sticking to the plan you and your financial adviser create. While it may be tempting to use your newfound confidence to brush off the rules, many financial advisers recommend sticking to your financial plan like glue, which often results in your money sticking closer to you.  

Deep dive into your beliefs about money
Money management can be as behavioural and emotional as it is about numbers. If you doubt your capabilities to responsibly manage your finances because of negative past experiences or deep-seated insecurity, those feelings can reflect in a self-fulfilling prophecy of poor money habits. Instead of resigning yourself to simply being ‘bad with money’, learning more about yourself and your beliefs could help to unlearn bad habits.  

Build emergency funds
Expecting the unexpected can be challenging, especially if there’s lots of shiny leisure expenses catching your eye. According to a recent study* by Hargreaves Lansdown, one in four British adults don’t have a single pound stashed away for rainy-day savings. However, many financial advisers highly recommend creating a safety net to fall back on. Not only do emergency funds build up your net worth, they offer a soft place to land that can spur more confidence in your financial choices.  

Know where your money is
Learning all about your debt, assets and average monthly costs can provide a much clearer overall look at your finances. Instead of taking a hesitant shot in the dark when spending, knowing where your funds lie and what areas of your financial health need more attention may result in greater confidence in all your choices.  

If you would like to talk to a member of the team here at gpfm about any of the issues raised in this article, please don’t hesitate to get in touch over email  enquiries@gpfm.co.uk or call 01992500261.

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions. Investments can go down as well as up and you may get back less than you invested. 

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About gpfm 

gpfm are an independent financial planning company dedicated to the provision of personal, professional, and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.