6 Steps to Build Money Confidence

Do you freeze up when making financial decisions? Ever catch yourself saying “I’m just not a numbers person” to avoid dealing with money matters? Do your finances keep you awake at night? 

If so, you’re far from alone.  Recent research reveals that over a third of Australians lack confidence in managing their finances, with many experiencing genuine financial anxiety as a result.  

Yet much of this anxiety is preventable. The solution isn’t to become a money magician overnight, nor is it to wave a wand and make any financial challenge disappear. It’s about building financial literacy, which in turn develops into genuine confidence. And with confidence comes an ability to avoid being overwhelmed and instead to break things into manageable, surmountable bite-sized pieces. 

In this article, our Melbourne financial advisers explore the root causes of financial overwhelm, practical strategies to build money confidence, and the life-changing benefits you can expect to experience.

Key Signs of Feeling Financially Overwhelmed 

• You can’t stop worrying about money, even when things don’t seem all that bad. 
• It’s difficult to stop all the internal ‘dollar dialogue’, switch off and fall asleep. 
• You’re afraid to open letters from your bank. 
• Talking about finance makes you feel uncomfortable, ashamed or nervous. 
• When you do talk money, it’s usually in a heated argument. 
• You have a regular physical feeling of unease; a queasiness in your stomach. 
• You procrastinate around money making decisions. 

If any of these sound familiar, a fear of finance might be to blame. If so, the following suggested behaviourisms could be just what the financial planner ordered! 

Steps to Grow Your Financial Confidence 

1. Appoint the best financial planner for you 

You wouldn’t choose a doctor you don’t trust with your health—so why work with a financial advisor you don’t connect with for your wealth? Finding the right financial planner lays the foundation for everything else to flow. Trust is paramount in this relationship. You may well start this process by feeling vulnerable, so feeling like you’re in a safe place with someone who really has your back is key. 

Once you’ve established a level of confidence and comfort, you can unburden yourself from a lot of weight. Your financial planner is now responsible for understanding your financial goals and providing a roadmap towards them. 

2. Learn the basics of finance (and see where you go from there) 

When we talk about financial literacy, we’re not suggesting you reach actuary status. It’s all about grasping the basic principles so that you can handle your money wisely, protect your wealth, invest effectively (if that’s part of your plan), and plan for your retirement appropriately. 

ActOn Wealth financial planners work with our clients to ensure they understand not only the how, but also the why. We aim to expand your financial knowledge in tandem with growing your wealth. Ensuring you feel comfortable asking us questions and learning as you go is key to a successful planner/client relationship. 

3. Build a solid financial plan 

A plan brings control, and with control comes confidence that 

you’re on the right path and headed towards your goals. Typically, the steps you take to build a financial plan with ActOn Wealth include: 

Step 1 – We arrange a no-cost, no-obligation meeting. The purpose is primarily to ensure we’re the right fit for one another. 

Step 2 – We meet again, but this time to crystallise your goals. We’ll begin to discuss how we can move forward to achieve your goals. We will also ask you to complete a questionnaire so that we can assess your risk tolerance, which will inform our recommendations. 

Step 3 – Our team goes away and builds your financial plan. We’ll take everything you’ve shared into account and use this time to tailor a very unique roadmap.

Step 4 – We will meet again to review your plan. We ensure you understand every element. We hope you ask us plenty of questions. 

Step 5 – You’re comfortable with your financial plan. You’re probably actually excited about it, as you know this is your roadmap to growing your wealth and establishing new financial security. Let’s go! 

4. Live within your means 

Your financial plan will likely include a budget and cashflow analysis. 

Whilst your plan will be a long-term approach, managing your budget and 

Cash flow forms the day-to-day microwork that really moves the dial. 

Understanding the money coming in and going out sets a strong financial foundation and gives you an appreciation and healthy attitude towards your finances. 

5. Don’t sweet the daily stuff. Become a long-term thinker 

This point is especially true if your new financial plan involves 

investment advice. Taking the long-term approach is key here, as markets 

regularly fluctuate and you don’t want to live and die by the sword. 

6. Protect your wealth 

Although it depends on where you fall on the risk tolerance level we 

mentioned in point 3, protecting your wealth and assets could be a big 

step in giving you confidence. Speak to our team about insurance advice and risk protection. 

Why is Money Confidence So Important?

The relationship between financial confidence and one’s overall sense of well-being is often intertwined. Losing that financial fear can have benefits in ways that may surprise you. It’s not unusual for us to hear the following from our clients: 

• A reduction in feeling stressed and anxious 
• No longer procrastinating or outright avoiding financial tasks and decisions 
• Feeling empowered to make financial decisions, or at the very least, talk them through in detail with us 
• Sleeping more soundly 
• Feeling more positive about life in general  
• Improved relationships – difficult, stressful conversations about money no longer form the backbone of arguments 
• Feeling far more prepared for any unexpected emergencies 

Farewell Financial Fear – Contact ActOn Wealth Melbourne

If you think your finances are controlling you for all the wrong reasons, contact our team today. We’re available for a no-cost, no-obligation meeting. 

Take the first step with ActOn Wealth, and see how far it can get you. 

FAQs

What is Financial Confidence?

Financial confidence is a state of mind based on money-related knowledge and skills. Having confidence in money helps you make more informed decisions about your finances and gives you peace of mind. This, in turn, can have a positive impact on your overall well-being.  

Can I Improve My Relationship With Money and Feel Better About It Even If I Have a Low Income?

Absolutely. Financial confidence isn’t about how much you earn—it’s about how well you manage what you have. Many of our clients with modest incomes develop strong financial awareness through budgeting, prioritising expenses, and making informed choices about their money. 

What’s the Difference Between Having Confidence in Finance versus Being Financially Literate? 

Financial literacy encompasses an understanding of various money-related topics, including budgeting and cash flow, investments, and debt management. Confidence is what comes when that knowledge is applied; it’s often a sense of calm and control.  

Should I Work With a Financial Advisor to Build My Confidence in Money?

A financial planner is a great starting base to build that feeling of control and calm. The right planner will help improve your knowledge as you go, whilst also giving you the awareness and tools you need to begin making small and simple habit changes. Over time, you will likely want to take on more complex decisions and goals. This is a great sign that you have found the best financial advisor for you.  

How Do I Overcome the Fear of Making Financial Mistakes?

We all make mistakes in life! Don’t be hard on yourself. You didn’t study numbers at University and possibly didn’t even receive a basic level of teaching in high school. So be kind to yourself and realise that even reading this article is an excellent step in a positive, empowering direction. 

ActOn Wealth financial advisors are here to help you feel confident about making decisions. It’s fine to make small mistakes here and there, as long as you learn from them and, overall, you’re headed in the right financial direction.  

This article contains general information only and does not constitute medical, psychological or financial advice. It is not a substitute for professional guidance. If you are experiencing emotional distress, please consult a qualified mental health professional.