The top comment I hear when I tell women I work in behavioral finance is
“I’m not good with money.”
The two contenders for a close second are
“I don’t know anything about money.”
and
“I don’t know anything about investing.”
I could write a book on why I think women say this to me, but if I can boil it down to two main reasons.
1. The “bad with money” mindset is an excuse
The first reason, is that the “bad with money” mindset serves you by you letting you stay exactly the same. Your mindset is the story you tell yourself in the back of your mind to help explain the meaning of events that are happening today. If you’re just “bad” with money, and no matter what you do you cannot improve, then there is no reason to keep trying. You’re bad with money, and you can’t change, so why bother trying, is the mindset you hold onto.
The real problem is that most of us know we can change and improve, but we think it will be difficult or there will be negative outcomes. Instead of adopting a more useful mindset, such as, “I’m always exploring ways to improve with money,” we keep the negative mindset so that we can avoid changing. Your mindset is a choice, and often “I’m not good with money” is an excuse to keep from changing.
2. You Lack Financial Confidence
The second reason is you feel that you aren’t good with money. This is a subtle, but powerful difference. When you lack financial confidence, you feel uncertain about how you are managing your money, and that feeling is what causes you to believe you aren’t good with money. For women who are making a decent income, and using financial principles to support their financial management, this is often the area that holds them back.
The antidote to feeling that you aren’t good with money is to understand your personal values, get a clear picture of how you want to live those values, and then develop habits that support you in living out your values. Many of us are living our lives based upon what we’ve been taught from our families, circle of peers, and marketing. We think that if we buy the same products and handle our money in the same way as those around us, then we will feel confident in our choices. The problem is that this fails to account for our unique interests an aspirations.
You are worthy of managing your money in a way that makes sense for you. Money doesn’t exist in a separate bucket that you set to the side. Money is an integral part of your every-day life. When you have clarity in your values, have set your standards, and developed effective habits, your finances will support you in the life you want to live today and well into the future.
I started the Value and Invest Academy to support women in feeling completely confidence in their finances by aligning their values and their daily behaviors. You can look into my courses and coaching at Value and Invest Academy.