Financial Empowerment: Building Confidence in Your Financial Skills

by | Aug 8, 2024 | Emotional Intelligence & Agility, Financial Wellbeing, Women's Empowerment

Building confidence in managing your finances is crucial for achieving financial independence and long-term security. Many women often feel less confident about their financial skills due to societal norms and early socialisation, which have traditionally focused on caution and dependency rather than empowerment and independence. This blog post outlines practical steps and exercises to boost your financial confidence.

Understanding Financial Confidence

Financial confidence is not just about knowing how to manage money but also about trusting your ability to make informed decisions. Many women have been socialised to feel less competent in financial matters, which can lead to anxiety and avoidance.

Why This Matters

  • Historical Context: Women have traditionally been less involved in “strategic” financial decision-making (or when it is about large sums of money), leading to a lack of confidence in this area.
  • Socialisation: From a young age, girls are often taught to be cautious with money, while boys are encouraged to take risks and invest.
  • Self-Perception: This cautious approach can hinder women from feeling confident about their financial capabilities.

Four Key Areas to Develop Financial Confidence

  1. Identify Areas of Confidence Reflect on the areas in your financial life where you already feel confident. This could be budgeting, saving, or even discussing finances with a partner. Understanding where you feel strong can provide a foundation for building further confidence.

Activity: Make a list of areas where you feel confident and write down why you feel that way. For example:

      • Area: Budgeting
      • Reason: I have successfully managed my monthly budget for years.
  1. Create an Accomplishment Log Keeping track of your financial accomplishments can significantly boost your confidence. This could include anything from opening a savings account to making a successful investment.

Activity: Create a log of your financial accomplishments, both big and small. Celebrate these achievements as steps towards greater confidence. For example:

      • Opened my first savings account.
      • Made my first investment.
  1. Address Your Fears Identifying and confronting your financial fears can help you understand what holds you back. Often, these fears are based on worst-case scenarios that are unlikely to happen.

Activity: Write down everything you are afraid of regarding your finances. Evaluate why these fears hold you back and what you can do to address them. For example:

      • Fear: Losing all my money.
      • Reason: Fear of financial insecurity.
  1. Challenge External Opinions Worrying about what others think can be a significant barrier to financial confidence. It’s crucial to focus on your own beliefs and values rather than external judgments.

Activity: Reflect on how external opinions affect your financial decisions. Commit to taking actions based on your beliefs rather than worrying about others’ thoughts. For example:

      • Thought: If I invest and lose money, others will think I’m irresponsible.
      • Action: I will base my investment decisions on research and personal goals, not on others’ opinions.

Upcoming Event: Beat Financial Stress – Mindset Matters

As a coach, I help mid-life women in STEM and finance cultivate these vital skills, empowering them to be independent decision-makers and confident advocates for their finances and lives.

I am passionate to help women go through their life transitions with wisdom and confidence, and turn money from a source of stress into a source of strength in that process.

Join Minna Schmidt and myself for an enlightening audio conversation on “Beat Financial Stress: Mindset Matters”. We’ll explore the psychological aspects of financial stress and offer actionable insights to help mid-life women regain control over their financial and emotional well-being.

Topics we’ll cover include:

  • Identifying those most affected by financial stress.
  • Recognising the symptoms and psychological impacts.
  • Practical strategies to build financial resilience and emotional strength.

By attending this event, you’ll gain a deeper understanding of how to manage financial stress and build a supportive network for your financial health.

Event Details / LinkedIn Audio:

Sincerely yours,

Dr. Sophie

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Inspired by:

Castillo, B. (2024). Self Coaching Scholars Workbook – June: Self Confidence. The Life Coach School.

Loewentheil, K. (2024). Take Back Your Brain: How a Sexist Society Gets in Your Head–and How to Get It Out. Penguin Life.