5 Tips for How Women Can Build Their Financial Confidence

One of the most fascinating phenomena I’ve encountered working in the financial services and insurance industry is that the vast majority of people I meet find it incredibly uncomfortable to talk about their finances. Give someone the choice between talking about their sex lives and their financial lives, and I guarantee you’ll hear more on the former. Why do people work so hard to avoid talking about money?

Just like any challenging issue or situation, it won’t go away simply by ignoring it. In fact, the best way to start tackling something unknown is simply to start at the beginning. If you’re a woman who wants to take charge of her financial future but doesn’t know how or where to begin, I have good news for you: With the right tools and by starting with the basics, we can all become more confident in our financial futures.

Women say they want to become more financially savvy, but a lack of confidence may be holding them back. A recent study by Northwestern Mutual and Forbes Insights revealed that, although the majority of women feel confident in their life goals, only 27 percent believe their money goals are achievable. That means barely one in three women feels good about her financial future. As women, we should all be concerned about these numbers.

Taking the first step toward understanding and building your financial future is incredibly empowering. It inspires confidence that you can achieve your goals – not only your money goals, but in other aspects of your life as well.

I’m passionate about empowering women to gain the financial education they need to take charge of their financial futures. Here are five tips I’d like to share with you to get started today.

• Take inventory. Make a list of your key financial priorities and spending habits. Include all the ways you want your money to work for you – whether saving for retirement, a home remodeling project, a dream vacation or your children’s college tuition. List the obstacles keeping you from reaching your goals. Identifying what’s important to you, as well as the barriers, will help you create a plan that aligns with your values and also addresses your needs.

• Be a learning sponge. When it comes to finances, there’s never a shortage of information. If you’re just getting started, familiarize yourself with the basics. Subscribe to a blog, read a magazine or visit a website dedicated to financial topics. Make a goal of learning one new financial fact each week. Take advantage of free online resources like those found at northwesternmutual.com/learning-center/tools.

• Create a plan. Women are most successful when they visualize their goals and follow a comprehensive plan to achieve them. Whether your goal is to run a marathon or to own your own company, a woman with a plan has the vision to make her dreams come true. Women can find inspiration online by exploring stories and tips via #WomanWithAPlan.

• Talk about it. According to a study done by Northwestern Mutual, Americans would rather talk about their own death and the birds and the bees instead of talking with their friends and family about money. Start a financial planning group or simply make an effort to begin a conversation about money with a close friend or your mate. Stating our goals is often the first step toward making them real.

• Seek professional advice. Studies show women who work with a financial advisor feel more confident about reaching their financial goals. Ask for referrals from your friends and family or visit northwesternmutual.com/locator to find an expert in your area.

My hope is that these tips will help you cut through the clutter and hone in on what matters most: taking that first step. Of course, feel free to make these tips your own and tweak them according to your schedule, personal needs and goals. More women feel confident about their financial futures when they work with an advisor, so don’t discount some outside counsel when getting started. Happy learning!

“Women say they want to become more financially savvy, but a lack of confidence may be holding them back.”

By Emily Holbrook, Northwestern Mutual
Photo by Deborah Kolb | Shutterstock