What is the first step towards financial confidence?

Is it finally moving out from your parents’ house? 

Paying off all your credit cards and finally being debt free?

Or is it something deeper, that has absolutely nothing to do with money?

You see, financial confidence is exactly what it sounds like. It means you have the confidence to be financially independent, no matter what situation you find yourself in. 

What Is Financial Confidence?

Most people in life work towards becoming financially confident. But only a very few actually achieve it. 

Financial confidence isn’t about having a steady job, getting a large paycheck every month or having a ton of money saved up in the bank. It’s about having the skills to financially sustain your lifestyle despite economic times.

When economic times are bad – when a recession hits, or there’s a depression, or hyperinflation, a job won’t provide financial confidence. In those uncertain times, companies look to lay off their most expensive employees. And if you’re on the top of their payroll list, your safe secure job that you thought was keeping you financially stable, is now your worst nightmare come true.

The same is true in times of a crisis such as a recession or depression. All your money that you saved up over the years, becomes worthless in an instant. Take for example the country of Zimbabwe, where hyperinflation caused it’s currency to be worthless – 100 trillion Zimbabwe dollars is only worth 40 cents in the US.

How To Develop Financial Confidence

Unless you were surrounded by financially successful people while growing up, chances are you do not have the skills or mindset to achieve it. 

A person’s environment is the biggest factor that determines whether or not they’ll become successful. If you grew up around poor people, you will most likely end up poor. If you grew up around rich people, you will most likely end up rich as well. It’s the Law of Environmental Exposure, which states that your actions and behaviour are a byproduct of the environment you are in most. This is why children of poor parents end up living a similar lifestyle, such as children in third world countries who have no choice. The only way for them to change their future, is to change their environment. They have to travel to another country – something my mother did for me when I was young. She moved us from Hong Kong to Canada, to change my environment and as a result change my future.

In order to become financially confident, there are three things you must focus on.

The first is your environment.  

My mentor Dan Pena, says that the five closest people you hang out with, determine your future. Think about the five people you are closest with, and describe their lifestyle. If it’s not one you want to have as well, then you need to change your environment.

Hang around with other people who are looking to achieve the same things you are.. Attend seminars, networking events and entrepreneurship groups. Surround yourselves with people who are on the same path as you, to change your environment into one that is focused on success.

The second thing is your mindset.

Your mindset is another one of the biggest factors that will influence your success and financial confidence.

For example, let’s say that tomorrow an economic recession were to occur. A person with a poor mindset would probably panic, worry about their job and salvage the most of what they have – a saving mentally. 

But someone with a rich mindset would think about how they can leverage the current situation to their advantage – such as learning about a shortage of rice and setting up their own supply route to provide rice to those that need them. Instead of running around with his head cut off, the person with the rich mindset finds ways to turn disasters into opportunities, through their ability to see things that other people don’t. This is possible only with a rich mindset.

The third and most important step is developing skills.

Skills are what allow you to be financially confident. With skills you can turn a recession into an opportunity. With skills you can make a living and even become wealthy no matter what part of the world you find yourself in. With skills you can develop the confidence to stand on your own wallet, because skills are something that you can never lose.

You can lose a high paying job. You can lose your house. You can lose your country. But if you have the skills to make it all back, you will never have to worry. That is what financial confidence is – having the mindset, skills, and ability to become self sustaining no matter what conditions you are in. 

Ask yourself: If you were to lose everything you had today, would you be able to make it all back? Your answer determines whether or not you have true financial confidence.

Skills That Develop Financial Confidence

I believe there’s only one kind of skill out there that can provide financial confidence. And that’s high income skills.

High income skills are skills that:

  • Generate at least $10,000 a month
  • Pay based on the amount of value that is delivered to the marketplace, not what your boss thinks
  • Increase your income as you get better at it

There are many high income skills out there – such as coding, copywriting, speaking and closing. All of them allow people to have the confidence to stand on their own wallet no matter what situation they find themselves in, because of the value and results they are able to deliver.

Summary

Financial confidence is the ability to make everything back if you were to suddenly lose it. True financial confidence means that you are not bound by any job, country, or material possessions. Your skills and abilities create financial confidence, because no one can take them away from you.

Your skills and abilities create financial confidence, because no one can take them away from you. Click To Tweet

If you are interested in learning more about high income skills and which skill is most suited for you, click here to take the quiz.