Your Money, Your Power: How to Build Financial Confidence with Small Changes

Why Financial Confidence Matters

When it comes to your money, even though it may not feel like it, you are in control. You have the power to decide what happens and how your money works for you. But sometimes, when you are living paycheck to paycheck or find yourself struggling to get out of debt, it can be hard to feel your power. This is where financial confidence comes in. Financial confidence is the feeling of being in charge of your money. 

When you are financially confident, you know that you control your money, it isn’t controlling you. That confidence is an important piece of your financial puzzle. It’s even more important if you are facing financial challenges. With money confidence, you know you can face your challenges head-on and win. 

SaverLife Member Kristina describes that feeling perfectly. “With saving, I get to have confidence in my financial decisions, retirement, and continued quality of life. And instead of betting on luck in life, I get to keep betting on me.” 

Financial confidence isn’t about having lots of money, it’s about working with what you have. The best thing about financial confidence is that it’s something you can strengthen. Here are 5 steps you can take to build your financial confidence today.

Five Steps to Build Your Financial Confidence

1. Start Where You Are

Often, when it comes to money, we put off focusing on it. Especially if the situation isn’t good. But if you’re ready to build your financial confidence, you have to start where you are. The first thing you need to do is take stock of your current financial situation, even if it feels messy. 

Grab a pen and paper and jot down your income, expenses, and debts. These three pieces of information are key. Writing them out gives you a sense of your current situation. It can also make you feel more confident. Being aware of your financial situation is the first step toward empowerment. 

2. Set Small, Achievable Goals

Once you know where you are, you’ll want to figure out where you’re going. This is where goal setting comes in. Setting big financial goals can be nice and can help you feel motivated. But often, progress on these is slow and it can be hard to stay on track. Instead, set small achievable goals. Small goals are the perfect place to start. They can help you get quick wins. These wins build your confidence.

Here are a few small goals you can use to get started:

• Save $1 a day (or $7 a week). Saving even small amounts of money builds a habit, and as your life and expenses change you can keep it up.

• Eliminate one unnecessary expense. Maybe it’s a streaming service you don’t use or an expense that doesn’t line up with your values. Either way, eliminating an unnecessary expense is a great financial goal.

• Pay an extra $10 a month towards one of your debts.

Each of these small goals will impact your finances and your confidence. Pick the one that makes the most sense for you or create your own. The important thing is to set yourself up for a quick win!

3. Use Affirmations to Shift Your Mindset

The way that you think and talk to yourself affects your confidence. To build your financial confidence, you need to shift your mindset around money. 

One way to do this is with affirmations. Affirmations are phrases made to shift your mindset. This can help create a positive link between you and your money and combat any limiting beliefs you have about managing money. 

Here are a few examples of money affirmations to get you started:

• My prosperity is limitless.
• My money works hard for me.
• My money goes to what I value.
• I am financially confident.
• I release my fears around money.

Pick an affirmation or two that resonate with you. Write them down and repeat them to yourself daily. Then, watch your mindset around money start to shift.

4. Celebrate Small Wins

In money, and in life, the tendency is to wait for the big milestones to celebrate. While you’re building your financial confidence, celebrate the small wins. Celebrating small wins and looking back on where you started can help keep you motivated. It gives you a chance to acknowledge that you are moving forward. Each time you complete one of your small goals, celebrate it. For any bigger goals you set, celebrate key moments of progress along the way.

It is important to remember that celebrating doesn’t always have to be expensive. And often, it shouldn’t be. Celebrate with a coffee on the way to work or stream the movie you’ve been dying to watch. The important thing isn’t the cost of the celebration, but rather the act of recognizing your progress.

5. Keep Learning and Growing

One of the best ways to build your financial confidence is to never stop learning and growing. The more you learn, the more confident you will feel with your money. 

Try free or low-cost resources to help you learn more about personal finance: 

• Check out your library for books on managing money.
• Connect with non-profits in your area to see if they host free or inexpensive workshops. 
• Look online for YouTube videos, free online courses, or podcasts about money management.

When you start building your financial confidence, you are setting out on a lifelong journey. Think of your relationship with money as a marathon, not a sprint. The more you know, the more your confidence will grow. Never stop asking questions and learning about your finances.

Building your financial confidence won’t happen overnight. Remember, it’s about consistent action and a positive mindset. It won’t be perfect and it doesn’t have to be. It’s a lifelong journey about progress, not perfection. If you stick with it, you will see your relationship with your money change for the better. 

Start to build your financial confidence today. Write down three small things you will do in the next 24 hours to get started!

💡Expand for Saving Inspiration

Saving Your Daily Dollar: Where to Look First

Reduce Regular Expenses

• Lower your thermostat by 1° ($1/day on average)
• Take shorter showers (50¢/day on water/heating)
• Unplug devices when not in use (50¢/day on electricity)
• Use cold water for laundry (75¢/load)

Switch and Save

• Use a reusable water bottle instead of buying bottled water ($1.50 saved)
• Make coffee at home instead of buying ($2-4 saved)
• Pack lunch vs buying ($5-10 saved)
• Use store brands vs. name brands ($1-3 saved per item)

Smart Shopping Methods

• Use cashback apps (1-5% back on purchases)
• Check unit prices vs. sale prices
• Buy in bulk for regularly used items
• Shop with a list to avoid impulse buys

Create a Collection System

1. Label a jar “Daily Dollar” and empty pocket change into it each night
2. Round up purchases to the next dollar, and save the difference
3. Transfer $7 to savings each week

Remember: You only need to find the ways that work for you to save your daily dollar. Choose what fits your life best!