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 – 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%) 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.
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%) of Vanquis customers say they have found cost-effective ways to see their loved ones recently. This could include making the most of the warm weather with a picnic in the park, searching the internet for ‘bogof’ (buy one get one free) ticket offers, or visiting one of the UK’s many free museums.
3. Balance what you need and want
Every month, you will have non-negotiable expenses that you need to pay. This may include rent, council tax 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. Look at ways to improve your credit score
For those with a poor or patchy credit history, a credit builder card may help some people to improve a credit score and keep on top of finances. Other ways to build a good score can include making sure you are on the electoral roll and asking for any mistakes on credit files to be corrected.
5. Finally, 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.
