Self Esteem Impacts Financial Performance

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.

Confidence Sustains Performance

In all areas of life, people talk about how they can improve and sustain performance. How do we get better results and keep good results regularly coming? This is true for people in their personal lives and careers, businesses, sporting teams and so on.

Foundational to building performance to a high level is knowing your DNA Behavioral style, openly communicating with others and then keeping to a purpose based plan. This is the core DNA Performance Model.

However, the key to sustaining performance is “confidence”. Building performance and starting a “winning streak” is one thing but keeping it going is another. Have you noticed how some people get it together early in their life or career and then lose it later seemingly going into a downward spiral. Some then come back, some do not. Others start slow and then get in the groove and grow. This is also true of businesses and also sporting teams. When you take a look into all of these situations of fluctuating performance the common element is confidence.

When confidence is increasing and is high it can propel you forward further to achieve even better results. However, competency and arrogance can creep in with a failure to remember what got you there. Then a bad event comes or someone does something great out of the blue and you do not know what to do. This can be the start of a loss of confidence, which can build up. At the same time, for another person who has been on a losing streak they string together some wins and successes. Suddenly, they start the climb upwards.

I would encourage all of you to think about what makes you confident and what makes you lose confidence. If you like, we can help you with looking at your confidence attributes.

I would also encourage you to read the book “Confidence” by Rosabeth Moss Kanter. This book uses plenty of great personal, business and sporting stories to show how winning streaks and losing streaks begin and end.