Boost your financial confidence by taking these tips on board
When it comes to finances, some of us may feel more ‘in control’ than others, and money matters seem to dent women’s confidence more than men’s, new research suggests.
More than half (51 per cent) of women admit checking their bank balance knocks their confidence, compared with just over a third (31 per cent) of men, insurer LV= found.
Women are also more likely than men to say receiving a bill knocks their confidence (55 per cent, versus 34 per cent of males), according to the research, while going overdrawn can also have an impact, with 43 per cent of women finding this a challenge to their confidence levels, compared with 28 per cent of men.
LV=’S survey marks the launch of its Green Heart Foundation, which aims to give a confidence boost to customers going through particularly challenging times.
It also found that money concerns affect age groups differently, with 16-24-year-olds’ confidence far more impacted than over-55s when checking bank balances (54 per cent versus 21 per cent) or credit scores (36 per cent versus 13 per cent).
So how can you improve your financial confidence? Here are LV=’S five top tips, developed with behavioural psychologist Jo Hemmings, for feeling financially confident…
1. Break down seemingly overwhelming concerns into smaller, more manageable parts. If you’re worried about your financial situation, look at the bigger picture and work out what you can do in the short term to alleviate the issue. Setting small, achievable goals really helps with confidence.
2. If you need help, talk to people who can provide it. For example, with finances, there are organisations such as the Money Advice Service and Stepchange who you can turn to for free guidance on managing debt and borrowing, or Pension Wise, who can support you in planning your retirement. You may also want to consider paying for independent financial advice, for tailored recommendations about your own personal circumstances.
3. Invest in peace of mind. The research suggests that financial security is one of the top confidence boosters for people in the UK, so consider if products such as life insurance or income protection can bolster your feelings of security.
4. Try and turn any negative thoughts into positive ones. For example, if you need to forego some of life’s luxuries to put more money into your pension, focus instead on the fact that you’re investing in your future.
5. Review your finances at important life stages. Major milestones such as having children or buying a house provide opportunities to take stock of where you are, financially, and help you plan for the next chapter.