Everyone has a set of beliefs about financial and personal wealth. Some are true, some are not. Examining and editing our financial beliefs can improve your financial health and quality of life, even if the numbers in your bank account stay the same.

My goal is to help people achieve financial well-being and a high level of personal financial management. That’s why I try to teach these skills before someone reaches their long-term goals, even when they’re in the earlier stages of their financial journey. These skills can be developed at any income level or net worth.

Low financial confidence can make it difficult to face whatever comes your way. But not impossible—here are a few practical tips for those who are just starting out, as well as for those who may be looking to build their savings and get back on their feet.

  • You know what it’s like to experience a setback. Don’t give up. You’ll find out what you’re capable of over time if you keep working hard and trying your best. Think about how you handled problems in the past, and what kind of safety net or resources helped you recover from that experience.
  • It’s important to start preparing for the future. Include what you have saved today and what might happen in the next few years. This includes emergency cash, liquid assets, unemployment insurance, and anything else you could think of in a week without getting penalized. You should also include family and friends who could pitch in if need be.
  • Have you evaluated your insurance policies and adjusted them to better protect your business? Would increasing your coverage help to alleviate some of your anxieties about the future?
  • To minimize the risk of your wealth evaporating, it’s wise to diversify your investments, just like you would with your other assets. When all your eggs are in one basket, if that basket crashes and spills all over the floor, all your hard work will have gone to waste. The stock market may be doing badly but you might be sitting on a nice stash of cash–or vice versa.
  • Evaluate your workforce. Let’s say you were to lose your job. The value of your time, skills and experience would not change in any way. You will only have lost a buyer. In fact, the value of your work will increase since you were hired, so the loss of one position could be a springboard to a much better situation.
  • How you value your money might have a negative impact on how you value your life. People who attach their self-worth to their net worth are at higher risk for being unhappy.

Building financial confidence is not an easy task, but it is certainly achievable with the right mindset and approach. Hopefully, this article has given you some useful tips on how to build financial confidence and make sound decisions with your money. Remember that building financial confidence is a journey, so take your time and enjoy the process.