One of my strong beliefs is that confidence sustains your performance. If you lose your confidence this will have a negative impact on your financial decision-making, and all other decision-making. The reality is that when your confidence goes down then you can become pressured to make poor decisions. Your emotions will be higher and rationality reduced.? It is then harder to stay with a financial plan when you have lost your confidence. You become reactionary to events rather than being committed to your decisions, which comes from confidence.
Now there is research which shows a direct relationship between having high self esteem and a good relationship to money.? Please review the Aviva Feel-Good Insight Report prepared in June 2010.? This is a study into financial well being. Click here to review.
One of the key research insights is that 85% of people who are in control of the finances have high self-esteem. Further, they are likelier to feel happier about their financial situation. Self esteem can be improved by sensible financial behavior, improved understanding and the right advice. 62% of people with high self esteem have set financial goals and save to invest in them. 72% of those with low self esteem lack any savings or investing habits for the long term.
So, what are you doing to build your confidence? What are you doing to ensure your self esteem does not get eroded?
In the end, it is practicing smart behaviors.? Take a look at our DNA Performance Model to learn more – click here.