Confidence may come from within for many people, but a new survey suggests being in control of your money can also be a big help.
Having your finances in order can be one of the biggest factors affecting self-confidence, according to research from Vanquis Bank in the UK – even outweighing romantic relationships and physical appearance.
Many people’s financial confidence may have already been dented by having to dip into their savings recently. Close to a quarter (24 per cent) of Vanquis customers admit they have already dipped into their lockdown savings.
Looking to boost your own money confidence? Here are some tips from Vanquis customer director Thomas Allder:
1. Knowledge is power
Many people were able to cut their spending in lockdown, but more spending opportunities now the world is opening up again could allow positive money habits to fly out of the window.
"I keep a budget book. If I need something I save for it. By the time I have saved for it, the original item is either on sale (so cheaper) or I find I don’t need it and have some savings."https://t.co/ECQ2PXRYZz
— Which? Money (@WhichMoney) May 8, 2021
Simple things like checking your balance regularly, and staying on top of what you owe, can help people feel financially empowered.
2. Find affordable ways to socialise
Just because diaries are starting to fill up, you don’t need to break the bank when meeting family and friends. Over half (51 per cent) of Vanquis customers say they have found cost-effective ways to see their loved ones recently. This could include heading for a picnic, going for a hike, or visiting a free attraction.
3. Balance what you need and want
Every month, you will have non-negotiable expenses that you need to pay, like rent or food bills. You will also have things you want to spend your money on, such as new clothes or tickets to see your favourite artist.
Maintain a good relationship with money by consistently prioritising what you need over what you want. Then, when you do decide to splash out, you can treat yourself guilt-free.
4. Keep going
Consistency is key when it comes to improving or maintaining good finances. Sharing your financial goals with family and friends could also help you to hold yourself accountable.