Did you know that only 19% of women feel ‘very confident’ making financial decisions? (according to a recent survey).  

Do YOU feel very confident making financial decisions? Honestly, I don’t think ANYONE does; there are too many variables out there. BUT, there are also many variables you face every day that probably don’t deter you. Like, walking across the street. All KINDS of things could happen. They usually don’t, but they could. 

So why do we lack confidence around money, more than other factors in our daily lives? You guessed it: money mindset. 

When you are preparing to cross the street, you probably have some familiar tools and methods to rely upon which help you to feel fairly safe and confident.  

“Look both ways.” “Watch the traffic light.” Remember how when you were small, your parents told you to hold hands when crossing the street? You were probably taught these skills so long ago that they seem like second nature to you now.  

What if you had a few basic tools when making money decisions that could help you feel confident? YOU CAN.  

First, you need to check your mindset. Are you beating yourself up for not knowing basic financial concepts? If so, why? Who says you SHOULD know this? Were you taught it in school? Most of us were not. So give yourself some grace before you dive in. Strive to have a “beginner’s mindset.” (Hint: you’ll learn MORE that way than if you think you are an expert!) LET YOURSELF HAVE A BEGINNER’S MINDSET. 

Next, ask yourself, what are a few tools I need to feel confident about making this financial decision? If it’s a decision to buy a car, for example, what do you need to know? 

Perhaps, will this fit into my budget? Or, am I getting a good price? Or, how do I protect myself from getting scammed?  

If you get stumped, try to think of questions a mature but curious child might ask. “How does that work” type of questions can be helpful. Then, ask them! ASK QUESTIONS. 

Who should you ask? It’s often helpful to start with an online search. For example, with the car purchasing decision, you could search for “average price of x (make and model of car) in my zip code.”  

With today’s AI tools, you often get even more info than you might have considered. When I used this search string recently, not only did I get an average price range; I also got a breakdown of the factors that influence the price range, and links to websites to do more research (like Kelley Blue Book and Carfax) as well as links to sites to purchase the vehicle. 

Reviews can also be helpful when faced with a purchase decision. Just always consider the source for anything you read online.  

You might also ask a friend who has made a similar decision recently. What factors did they consider which were helpful? What factors did they leave out, that they wished they had considered? Do they think the overall outcome of their decision was positive or negative? What did they learn? 

Let’s turn specifically to the question “will this fit into my budget?” – again, you could ask a trusted friend, advisor, or partner to help you with this. Or, if you want to learn yourself, guess what, you can easily learn online!  

When I just used the search string “how do I determine how much I can spend on a car?” I was supplied with a detailed breakdown. I learned how to determine my monthly net income and apply the 10-15% rule. I was also reminded that the TOTAL cost of car ownership should be considered, not just the buying price. I was even provided with step-by-step instructions to calculate that piece, including links to online calculators to help me further in answering the question.  

The takeaway here: online resources are available and highly useful in getting started with financial questions. BUT don’t rely on them solely for advice. Reach out to a friend or trusted advisor for that – someone who knows your personal situation and has your best interests at heart.  

Remember, financial journeys are best traveled with friends. YOU CAN DO THIS! AND you don’t have to do it alone.  

For more discussion on how money relates to feelings of self-worth and suggestions on how to change your mindset to be more positive in this area, please visit my webinar video on the topic: Money Mindset: Building Money Confidence and Self-Worth