• Home
  • Start Here
  • Blog
  • Free Resources
  • Shop My Filofax Store
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • Shop my Filofax store
  • Shop TBM
MENUMENU
  • BUDGETING
        • Categories

        • Budgeting Basics
        • Budget Guides
        • Budget Tips
        • Budget Recaps & Overviews
        • Living on a budget can be as challenging as sticking to a diet or committing to a workout routine. Here are tips to avoid burnout so you can achieve your goals!

          How to Avoid Budget Burnout: 5 Tips to Stay the Course

          When creating a budget, most of us focus on tracking our expenses, but tracking your income is just as important. This includes knowing your starting balance.

          What is Your Starting Balance & Why Does It Matter for Your Budget?

          Most of us have invisible money scripts that hold us back from reaching our financial goals. Learn what the three most common money beliefs are and how you can start taking steps to change them. 

          3 Money Beliefs That Might Be Holding You Back

  • SAVE MORE
        • Categories

        • Cut Expenses
        • Extra Income
        • Saving Tips
        • The true cost of a speeding ticket depends on your location, how fast you were driving, and any previous violations. Learn how much you can expect to pay after receiving a speeding ticket.

          Explained: The Surprising True Cost of a Speeding Ticket

          If you’re looking for ways to save, buying second-hand items might be a good idea. These 17 things are better to buy used instead of new.

          17 Things That Are Better to Buy Used Instead of New

          If you need to earn fast cash, selling household items online is the easiest way to do it. Here are 20 things in your home that you can sell right now.

          Need Cash Fast? 20 Things In Your Home You Can Sell Right Now

  • FRUGAL LIVING
        • Categories

        • Beauty & Health Tips
        • DIY
        • Family & Money
        • Food & Drink
        • Frugal Living 101
        • Household Tips
        • Holidays & Occasions
        • Kids & Money
        • Many people consider going to grad school but wonder if it’s worth the financial investment. Here are five questions you should ask yourself before committing to grad school.

          Should I Go to Grad School? 5 Things to Consider First

          Forget about a New Year’s Resolution! Try setting a New Year mindset instead. It might not seem like much, but your mindset can make or break your financial goals.

          How to Improve Your Financial Mindset to Achieve Your New Year’s Goals

          It’s not too early to start helping your child build their financial future. If you want to help your child start investing, here are the steps you’ll take to get started.

          How Can My Child Start Investing?

  • DEBT & CREDIT
        • Categories

        • Credit Cards
        • Credit Report & Score
        • Debt Basics
        • Get Out of Debt
        • Loans, Etc.
        • It’s easy to swipe a credit card, but paying it off is an entirely different story. Here’s what you need to know about the true cost of buying on credit.

          Revealed: The Ugly Cost of Buying on Credit

          Should You Buy Your Leased Car?

          Collection accounts can be stressful, but you can bounce back. Learn how to handle collection accounts and improve your financial picture.

          Has Your Debt Been Sent to Collections? Here Are Your Options.

  • FINANCE 101
        • Categories

        • Financial Planning
        • Investing
        • Retirement
        • Tax Tips
        • It might be tempting to withdraw investments, especially during times of economic uncertainty. However, most people should avoid touching their investments.

          The ONLY 3 Reasons to Touch Your Investments

          It’s that time of year again! Unfortunately, we’re not talking about the holidays. Now is the time for everyone to file their taxes. Here is what you need to know.

          2021 Tax Season: How to File for Taxes Online

          It’s not too early to start helping your child build their financial future. If you want to help your child start investing, here are the steps you’ll take to get started.

          How Can My Child Start Investing?

How to Improve Your Money Confidence

September 30, 2020
FINANCE 101

Share
Pin62
Share
Tweet
Email
62 Shares
  • Bio
  • Facebook
  • Pinterest
  • Latest Posts
Kumiko Ehrmantraut

Kumiko Ehrmantraut

Some links below are from our sponsors. Here's how we make money.
Kumiko Ehrmantraut
Kumiko Ehrmantraut

Kumiko Ehrmantraut

Kumiko Ehrmantraut

Latest posts by Kumiko Ehrmantraut (see all)

  • Should I Go to Grad School? 5 Things to Consider First - February 25, 2021

 

Building money confidence will make it easier for you to manage your money and meet your financial goals faster. If you struggle with money confidence, these six steps can help.

If you’re working on improving your financial situation, it’s pretty common to struggle with your money confidence. Many people feel embarrassed about previous financial mistakes and wonder if they have what it takes to build the financial future they want.

But it’s important to begin developing money confidence right from the beginning. Money confidence will allow you to make better decisions and create the results you want in your life.

The problem is, there is a huge emotional component to our relationship with money, and changing those patterns is no small task. But with consistent action, it is possible. So if you want to improve your money confidence, here are six steps to help you get started. 

1. Establish Your “Why”

Before you start taking action, take some time to figure out why it is that you’re doing this. Why do you want to improve your financial situation? 

Is it so you can provide a better life for your kids or have the option to leave your full-time job? You need a reason that’s going to sustain and fuel you after the initial excitement wears off, and believe me, it will. 

When you have a purpose and an emotional connection to your why, you realize that giving up isn’t an option. And all those difficult money decisions that would’ve tripped you up in the past become really easy.

Plus, having a clear vision of what you want and why you want it will give you the confidence to make those hard but necessary money decisions.

Featured Post

How to Stay Motivated on Your Financial Journey

Read Post

We won't send you spam. Unsubscribe anytime.

1. Let Go of Past Mistakes

You can’t develop money confidence until you’re willing to let go of your previous financial mistakes. I see so many people beating themselves up over things they did in the past, and it’s holding them back.

This is especially true for people who are stuck in a cycle of credit card debt. They feel terrible about their debt and the money they’re spending on interest payments.

I want you to understand that feeling bad about past mistakes isn’t helping you. Decide that you’re going to let go of them, and focus on taking daily steps to improve where you’re at today. You aren’t defined by credit card debt, and you have the power to change.

2. Set Financial Goals

Many people struggle with their confidence around money because they don’t have any clearly defined goals. “Get out of debt” or “start saving” are very vague goals, and you’re going to have a hard time making any progress.

So take some time to set some really specific financial goals. For instance, if you want to get out of debt, sit down, and figure out exactly how much you owe. 

Many people avoid looking at the total balance of their outstanding debt, but this makes them feel more insecure and unsure of themselves. When you know what you’re dealing with, you can address the situation head-on and develop a realistic timeline and payment schedule. 

3. Tell Your Money Where to Go

I can’t stress enough how important it is to have a budget. Many people feel insecure when it comes to their finances because they have no idea where their money is going every month. 

The money seems to fly out of their checking account even faster than it came in. That’s why it’s important to set up a zero-sum budget every month.

When you have a budget, every dollar you earn has a purpose. You plan for things you want to spend your money on ahead of time. 

And when you stick to your budget every month, this will help you build confidence in yourself and your ability to manage money well. 

Featured Post

What is a Zero-Based Budget?

Read Post

 

4. Save an Emergency Fund

Financial emergencies are a part of life and will never go away. That’s why you need to plan ahead and have an emergency fund saved up. 

I recommend saving up at least three to six months of your monthly expenses. That way, if your dog needs emergency surgery or you’re laid off from your job, you won’t be wondering how you’ll pay your bills next month. Look for a job now on ZipRecruiter >>

And once you have a six-month emergency fund saved, so you may find it helpful to do this for other areas of your life as well. For instance, you could have a particular savings account dedicated to Christmas gifts or a vacation fund.

Featured Post

Where to Invest Your Money for Short-Term Savings Goals

Read Post

5. Automate Your Savings

If you’ve never gotten in the habit of saving money before, it can be tough to get started. There’s always some unexpected expense that seems to come up, and it’s easy to reach the end of the money feeling frustrated that you didn’t hit your savings goal.

That’s why I recommend paying yourself first and automating your savings. At the beginning of the month, the money you’re saving is automatically transferred out of your account before any other bills are paid. This saves you from having to even think about whether to save that money or not.

I recommend using the CIT Savings Builder to get started. You’ll need a minimum monthly balance of $100 to open the account, and if you deposit at least $100 every month, you’ll have a higher interest rate than what most savings accounts offer.   

6. Stay on Top of Your Credit

Have you ever felt nervous and embarrassed when a lender ran a credit check on you? Many people struggle with poor credit, and it saps their confidence and chips away at their financial options.

But there are simple steps you can begin taking immediately to improve your credit score. One of the best things you can do is to start paying your bills on time every month. Your payment history accounts for 35% of your FICO score, so this small action alone will make a huge improvement. 

A high debt-to-income ratio will also drag down your score. So slowly paying down outstanding credit card debt will improve your credit score over time as well. 

Featured Post

How to Fix a Mistake on Your Credit Report

Read Post

Bottom Line

Improving your money confidence is one of the best things you can do for your financial future. When you’re confident, you can manage your money more effectively and take the right actions to meet your financial goals. Building confidence won’t happen overnight, but it can be done with consistent action.

 

Share
Pin62
Share
Tweet
Email
62 Shares

Filed Under: FINANCE 101 Tagged With: BUDGET TIPS, MONEY CONFIDENCE, MONEY TIPS

Previous article:
« 6 Steps All First-Time Home Buyers Should Take
Next article:
Wedding Budget 101: Plan for Your Big Day Without Breaking the Bank »

Comments

  1. Joann says

    September 30, 2020 at 9:15 am

    Hello…my daughter will graduating from college in May. She has approximately $16,500 in federal loans. Do you have a tracker she can begin to use to help her begin to put some money aside so that she can pay those off ASAP? Thanks 😊

  2. Mari says

    September 30, 2020 at 11:25 am

    Love it! Thank you!!

  3. Andrea says

    October 2, 2020 at 7:10 am

    Very Helpful! Thank you!

  4. Isela says

    October 2, 2020 at 9:28 am

    Love it!

  5. Linda says

    October 2, 2020 at 10:08 am

    Thank you. This really spoke to me and helped with a lot of the anxiety I’ve been dealing with.

  6. Susan Hluch says

    October 4, 2020 at 4:37 am

    Thank you for your articles and videos. I am debt free except for medical bills and had a few questions please:
    – when saving the emergency fund, do you keep it cash or invest?
    -do you donate a certain percentage each month or do you base it on a case by case situation?
    – how long did you save to be able to pay your home in full?
    – will you have the spiral bound budget planner and the Filofax wallet again soon or are they out of print for the rest of year?

Trackbacks

  1. How To Improve Your Money Confidence : Dynamic Wealth Report says:
    October 1, 2020 at 4:01 am

    […] Note: This article originally appeared at The Budget Mom. […]

  2. Profitable Ideas: Which Colleges to Apply to, How Biased Thinking Can Mess With Your Money, and More | Matt About Money says:
    October 9, 2020 at 7:00 am

    […] How to improve your money confidence (The Budget Mom). Blending the right attitude with the right tools and tactics. […]

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

Free Resource Library

Recent Posts

  • Should I Go to Grad School? 5 Things to Consider First
  • The ONLY 3 Reasons to Touch Your Investments
  • Explained: The Surprising True Cost of a Speeding Ticket
  • How to Avoid Budget Burnout: 5 Tips to Stay the Course
  • 17 Things That Are Better to Buy Used Instead of New

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2021, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.