Building Financial Confidence - Steps to Take Control of Your Money

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence." - Helen Keller

Insights from a Certified Money Coach:

Have you ever felt like money is that one, pesky (yet majorly important) area of your life that you just can’t seem to master?

Whether it’s the stress of budgeting, the fear of overspending or just the overwhelming feeling that your financial future is out of your hands?

Well, gorgeous woman I can assure you: you are NOT alone.

For so many professional women over 40, financial confidence can feel elusive. Despite professional accomplishments, a healthy social network and the support of a loving family, a HUGE number of women still find managing their money a puzzle.

But here’s the thing: financial confidence isn’t about having it ALL figured out from the start... Nope. It’s about taking proactive steps - one at a time - to understand your money and make the choices that align with your values. As a money coach, I’ve seen first-hand how women can transform their financial story with the right mindset and strategies that support them. So, let’s dive into a series of practical steps to help you take control of your money and build lasting confidence.

Step 1: Get Clear on Your Financial Story

Your money story starts with understanding where you’ve come from. Whether it’s lessons you learned as a child, habits formed over the years or experiences you’ve had in relationships, your financial mindset is shaped by your past. That's irrefutable. It's just the way it goes. But don't let the truth of that feel disempowering. The beauty of understanding your money story is that YOU have the power to change it.

If you're ready to challenge it, then it's time to get honest and ask yourself a series of questions...

Ask Yourself:

- What did money mean to me growing up?

- What beliefs or habits have I carried with me into adulthood?

- How have my life experiences influenced the way I view money today?

By reflecting on these questions, you’ll more than likely start to see patterns emerge. Maybe you’ve always felt the need to save “just in case” or perhaps you’ve been avoiding thinking about money altogether because it brings up feelings of anxiety.

Whatever your story is, acknowledging it is the first step toward rewriting it.

Step 2: Define Your Financial Goals

It’s hard to feel confident about your finances if you don’t know what it is that you’re working towards... Setting clear financial goals gives you a roadmap to follow and helps you make decisions with purpose. Whether it’s paying off debt, building an emergency fund, or saving for retirement, having a vision for your future is empowering.

If you're ready to dig into this one, then there are a series of steps you can follow...

Practical Tips:

- Set SMART goals: Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of saying, “I want to save more,” say, “I want to save $5,000 for an emergency fund by the end of the year.”

- Prioritise your goals: If you have multiple financial goals, prioritise them based on urgency and importance. For instance, paying off high-interest debt might take precedence over investing in a vacation fund. As a rule of thumb, something that is costing you more than money should be addressed first, then the expensive things, then the wants.

By setting meaningful goals, you can create a financial plan that reflects your aspirations and helps you move toward your own definition of financial freedom.

Step 3: Create a Budget That Works for You

The word “budget” might make you cringe, but it doesn’t have to feel restrictive, be painful or seem like a chore. In fact, budgeting is one of the most powerful tools you can use to take control of your money. When done right, it gives you clarity, freedom and the ability to make choices that align with your values.

If setting a budget feels like something you're ready to tackle, then following a couple of super simple steps might be just what you need...

How to Build a Budget You’ll Stick To:

1. Track Your Spending: Start by tracking your expenses for a month. You may be surprised by where your money goes! Tools like Mint or YNAB (You Need A Budget) can help you get a clear picture of your spending habits. In fact there are a bunch of apps available (most of them FREE) that can help you keep an eye on this. The old school approach is to save receipts and log everything into a spreadsheet of an evening. Whatever approach works for you just choose one and stick to it!

2. Prioritise Needs vs. Wants: Divide your expenses into “needs” (like housing, utilities, and groceries) and “wants” (like dining out, manicures and shopping). This helps you see where you can cut back if the dollars just don't stack up and cuts are needed.

3. Set Spending Limits: Based on your financial goals, allocate a specific amount for each category. And remember, budgets aren’t set in stone. If something isn’t working, adjust it until you find a balance that feels right.

4. Build in a Treat: When we feel like we've fallen into a new paradigm of restriction and rules it can suddenly seel really hard and can feel demotivating. It's important to factor in some sort of treat or reward into your budget so you don't feel like ALL the fun has gone. Maybe it's an ice cream with your beloved once a week that you incorporate into a date night stroll along the foreshore on a Friday evening. Maybe it's taking your pre-teen out to a cafe for a hot chocolate in the sunshine once a week to have a heart to heart chat and some quality time. Maybe it's a donation of some tinned food, blankets and your time at the local dog shelter. The idea of this is that it doesn't cost the earth, you find a way the budget can sustain it AND by doing it you get to build memories of something meaningful, special and exciting. By doing this you'll find that you can maintain your budget over the longer term because you won't feel like you've sucked all the joy out of life. It's really important so please don't skip over this step!

A budget is more than just a spending plan - it’s a tool for financial management but when done right, it can really empowers you to make informed decisions about how you want to live your life.

Step 4: Build an Emergency Fund

One of the biggest obstacles to financial confidence is the fear of the unknown.

I'm going to take a wild guess and say that you've experienced this yourself. In fact the fear of what might just happen is often the thing that keeps us up at night or hesitating to seize opportunities that present themselves to us.

Am I right...?

Does any of this sound familiar to you?

"How will I get the kids to childcare and then myself to work, if my car breaks down?"

"If I demand a better salary at my performance review, maybe they will let me go..."

"How can I ever pay off my debts if these expensive little life emergencies just keep on happening?"

Having a safety net in place is what savvy women do to help alleviate these worries, giving them peace of mind and allowing them to sleep better each night.

It's the gift that keeps on giving, because the feeling of confidence and control is something really massive that can change your perspective on everything over time...

No matter how you look at it, an emergency fund is a crucial component of wealth management.

It’s the money you set aside for unexpected expenses - think medical emergencies, a broken washing machine, car repairs, or that sudden and unforeseen job loss.

If you're ready to step up to the plate and get yourself an emergency fund, then follow these simple steps...

How to Start:

- Set an initial goal: Initially a fixed amount like $2,000 is a good target. This will give you enough of a buffer to cover a lot of every-day situations like appliance breakdowns, car repairs etc.

- Set a secondary goal: Once you have a buffer fund in place, the second goal is to aim to save three to six months’ worth of living expenses in your emergency fund. This gives you peace of mind that if something bigger (ie: more expensive aka worse) were to happen, you'd have it covered.

- Automate your savings: Set up an automatic transfer from your checking account to your savings account each month. Even small amounts add up over time.

With a healthy emergency fund, you get the privilege of tackling life’s uncertainties with confidence, knowing you have a financial cushion that will shield you from the shock.

Step 5: Take Charge of Debt

Debt - urgh...

It can feel like that persistent, damp and dark cloud that hangs over your financial well-being.

Here's the thing, when it's kicking your butt, it's a monster.

But when YOU take control of it and take steps toward eliminating it, you shrink it down to size and start to take back your power.

It doesn't have to control you, ruin your life or steal your joy.

Really, it stops being all those things as soon as you decide to take control.

So, whether you’re dealing with credit card debt, student loans or a suffocating mortgage, creating a plan to manage and pay down your debt is a crucial step towards carving your own pathway to financial freedom.

If you're ready to dig into it, here are some ways to approach it...

Strategies for Tackling Debt:

- Avalanche method: Focus on paying off your highest-interest debt first while making minimum payments on the rest. This saves you the most money in the long run.

- Snowball method: Pay off your smallest debts first to build momentum and motivation, then work your way up to larger debts.

- Consider consolidation: If you have multiple high-interest debts, look into consolidating them with a lower-interest personal loan or balance transfer credit card. (A note of warning: this really only works if you can be disciplined and not take on additional debt or max out those credit cards again, so be honest with yourself as to whether this suits your circumstances and habits before you pursue this approach!)

Once you have a clear plan for paying off your debt, you’ll start to feel more in control of your money.

Step 6: Learn to Invest for Your Future

Investing might seem intimidating, but it’s an essential step toward achieving long-term financial freedom. Whether you’re planning for retirement or simply looking to grow your wealth, investing allows your money to work for you.

Lots of women feel overwhelmed about investing like it's a great big, scary concept that is out of their reach. Nothing can be further from the truth. There are some simple ways to dip a toe in and get going...

Where to Start:

- Educate yourself: Take the time to learn about different types of investments, such as stocks, bonds, and mutual funds. If you’re unsure where to begin, consider starting with a retirement account like a 401(k) or an IRA.

- Diversify your portfolio: Don’t put all your eggs in one basket. By spreading your investments across different asset classes, you reduce risk and increase your chances of steady growth.

Investing doesn’t have to be complicated.

The key is to start small, stay consistent and remember that your money can (and will) grow over time.

Step 7: Build Financial Literacy

Financial literacy is the foundation of financial management.

The more you know, the better equipped you are to make informed decisions about your money.

Take the time to learn about personal finance topics, such as taxes, insurance and investing.

Like the proverbial journey of a thousand miles, your foray into financial literacy begins with the first step - so just take one. And take it TODAY.

Practical Steps to Improve Your Financial Literacy:

- Read books: There are countless books on personal finance. Some of my favorites include “You Are a Badass at Making Money” by Jen Sincero and “The Millionaire Next Door” by Thomas J. Stanley.

- Listen to podcasts: Podcasts are a great way to learn on the go. Some popular finance podcasts for women include HerMoney with Jean Chatzky and So Money with Farnoosh Torabi.

- Take courses: Many online platforms, such as Coursera or Udemy, offer courses on financial topics.

The more you learn, the more confident you’ll feel in managing your money.

Remember: action is the antidote to fear!

A Story of Financial Empowerment: Meet Liz

Liz, a 45-year-old civil engineer, came to me feeling overwhelmed by her finances.

Liz is a single woman working in a heavily male-dominated industry.

She works long hours and tends to spend a lot of time with her male colleagues as they often travel together for work reasons.

She has (naturally) never felt confident talking about her personal finances with the guys from the office - it's just never felt right.

So in the absence of any solid role modelling, poor Liz was floundering around in the dark when it came to her money "stuff".

Despite earning a really good salary, she was constantly worried about money.

She had no budget, was unsure how to invest and felt anxious about her future.

As a high achieving professional woman, she also struggled with admitting her lack of knowledge was standing in the way of achieving her dreams of financial freedom.

Together, we worked on understanding Liz’s money story and setting financial goals.

We created a budget that aligned with her priorities, set up an emergency fund and developed an investment strategy for retirement planning.

Within 3 months, Liz began to see the power of taking control of her money.

Her confidence grew, and nowadays she no longer feels like money is something to fear.

Today, Liz is on track to reach her financial goals for retirement and is enjoying the peace of mind that comes with financial empowerment.

Final Thoughts: YOU Have the Power to Take Control

Building financial confidence isn’t about having all the answers right away - it’s about taking small steps toward understanding and managing your money. With the right tools, strategies, and mindset, you can rewrite your money story and achieve financial freedom.

If you’re ready to take control of your finances and build lasting confidence, let’s connect. Together, we can create a personalised plan that helps you achieve your goals and live the life you’ve always envisioned.

While you’re here, be sure to snag my free workbook, Map the Gap.

It’s designed to make money goal setting a breeze - so easy and effective that it’s perfect for building into your regular routine. Even if you’re just dipping a perfectly polished toe into the world of Money Coaching, you’ll find it simple to dive in and get started. Trust me, the results will be so fabulous you’ll be amazed!

There’s nothing to lose except your fear of failure, so go ahead and grab your copy here.