Are you confident about your finances? Perhaps – NO. If you are one of those who aren’t comfortable or confident about your finances, you are not alone. Close to 75 percent of the respondents at the Fidelity Investments’ Retirement Mindset Study claimed that they are not much confident about their financial status. How would you improve your financial confidence?
What is Financial Confidence?
Well, there is no specific definition coined for financial confidence as a term. There have been multiple measures evolved over the years to define what is financial confidence.
It can specifically be understood to be a combination of the following elements –
- A tendency to believe that one can make sound financial decisions.
- The ability and efficiency to abide by those decisions made
- The will power to undertake the control over the finances than being controlled by them.
In essence, the Financial Confidence would refer to the ability to take control over your finances and fulfilling the goals that you have set for yourself.
Best Money Moves that assist you achieve perfect Financial Confidence
Follow these money moves that can help you make the best results –
#1 Track your spending at a regular interval
Your financial confidence will grow if you are aware of where does your money goes. The best option to help that happen would be to track your spending. You can choose your options based on your preferences.
You can either track it daily or consider a monthly tracking. You can use a few good options to track your usage. You can use the mobile apps that offer you a high degree of monitoring on the move. Knowing where your money goes can be the right option to find ways to save it.
#2 Improve your credit score
A good credit score translates into better financial health. It can definitely help you increase your financial confidence. You can get in touch with the credit bureaus to get your updated credit score.
A host of credit card issuers let you check your credit score for free. If you find any issues with your credit score or calculations, you can even get them corrected. Reduce your credit card utilization and improve your repayment schedule. Improved credit score can positively affect your finances.
A good credit score can definitely help you get access to better financial health and thereby better financial confidence. Read this valuable resource for understanding the impact that your credit score can have on your financial wellbeing.
#3 Use a 72 Hour Trigger
Online purchases can be an issue in many cases and affect your financial health dearly. Especially when you have a credit card. However, avoid the temptation and opt for a 72 hour trigger period. Many of the impulse purchases can be useless in the long run.
Wait till 72 hours before you take a call on the actual purchase, and that would help you avoid the unnecessary purchase. I myself have opted for this method and have found it can go a long way in improving the best money moves.
#4 Opt for a high yield savings account
You are already making enough money. Why not make it earn more? The savings accounts with a high rate of interest can be one of the best options for achieving the right results.
You can check out a few excellent services that you can have a look at and find if it meets your needs. You can workout your available options by following a few review sites.
#5 Plan Your Expenses
Of course, planning for every expense would not be more comfortable. However, there are instances where you can see the upcoming expenses and plan them accordingly.
Things like repairs and taxes can be well planned. That way, you can set aside a little amount for an upcoming expense. You will not be hit financially and can be financially confident having planned for an expense and can thus meet it up.
#6 Automate the savings
Paying yourself is the key to better financial health. What we mean by that is as soon as you get paid, make sure you are saving the money in a savings account right away. And most of the time, this is where most of us tend to falter.
Automating your savings can be helpful in this aspect. Ask your employer to credit your payment directly into your savings account. You can even consider saving a part of your paycheck into your specific savings account. That way, you can help yourself to your future goals.
Best money habits help you achieve the best results in terms of being financially confident. Check out those tips, and you will definitely be able to achieve the right financial stability.