We often associate personal branding with confidence, but we rarely talk about confidence around money and how this can enhance your personal brand. This month, guest blogger Faye Watts of www.fayewatts.com is here to do just that.
Whether you are an employer, employee, or freelancer, feeling comfortable around and knowing your money is vital. Money Confidence will help you appreciate your personal values and enable you to stand for what you believe in. In turn, this can strengthen your personal brand by giving you the confidence to make the right financial decisions and value your worth. When you understand your finances, you can achieve so much more and focus on what really matters to you.
Unfortunately, many of us, especially women, find that money confidence does not come naturally. I don’t want to go into the reasons why this is. It could be societal conditioning or your own personal background…but the important thing is to move forward and understand your finances so that you have a better relationship with your money. So, in order to help you do that, I’ve put together the:
7 Rules for Making Friends with Money
- Never be afraid of making money
If you’re worried about paying more tax, don’t be. Surely a smaller cut of something is better than a full cut of nothing? Moving up an income bracket simply means you have more in your pocket overall. More money can open doors career and business wise, but also within yourself: increased self-confidence, a feeling of achievement and above all, more options.
- Know what you are spending
I tend to follow an 80/20 rule, 80% of income goes on home and investing and 20% on fun and frivolous. So whether you choose to blow your money on gadgets, long haul holidays, fine food, or donate chunks to charity, as long as you have enough money at least you will have that choice. Do keep an eye on your outgoings and use credit cards and lending wisely, considering interest rates and terms at all times, and make sure you can afford it.
- If you don’t know what you want to do, choose money (at least for the moment)
If you’re unsure about your career choices, and want to do something just to get experience, choose something that can offer you the potential of a decent income in the meantime and therefore the ability to save whilst you decide. With savings behind you, you can afford to explore or study when you are ready. Alternatively, you may just have found yourself a career you love anyway.
The same goes if you are looking to start a business. Look at businesses that you can scale and that can make decent money. There’s nothing wrong with wanting a decent return if you are putting all this effort into it.
- Get comfortable with money
Know your figures. If you’re in business, understand what is coming in and what is going out and make sure that you have your finger on the pulse of your business at all times. Who owes you money right now? What do you have in the bank account at any given time?
Even if you’re an employee, do treat your finances like a business. Use apps like Monefy to keep an eye on your spending and see where the budget goes. Open your bank statements when they come in and keep a check on the health of your bank account with online banking.
- Get confident talking about money
If you’re in business you need to be able to ask for what you want without looking nervous or unsure. As an employee you may need to negotiate a pay rise. Feeling confident around figures will make this easier for you, and help you stand your ground if you need to. I’m not suggesting that you talk money at the dinner table, this may not be good manners, but don’t be afraid to be open and frank about what is due to you, especially if you are owed money or feel that you not getting a fair deal.
- Money is power
In our worldwide society, there are millions of people, a massive majority of them women, who are repressed. This can be more obvious in some societies, but can also be very subtle with many women unaware of even their household budget. Sufficient money knowledge can help anyone feel empowered, either individually or as a group, and allows choice. Money changes societies, influences politics and impacts personal lives. If you want to change things, understand the finances behind them first and this will give you the knowledge to pursue the choices you wish to make and influence change.
- Money can be incredibly exciting
Understanding how money works, whether it’s in your own life or the economy as a whole, can be very exciting. Every industry, even the most glamorous like fashion or film and television, need money people and it’s a way-in that easier than working up from the bottom as a runner or dogsbody. Become investment savvy, plan for your future, make your salary work harder for you and know what you spend, and enjoy the more choices in life that money can bring.
Oh and one for the future…
Be prepared, plan your finances, and build up savings and investments so that it’s easier to take time off to raise a family or retire early to sail around the world!
Faye is no ordinary accountant and tax advisor. Her background with creative industries and seven years as a freelancer in the fitness industry, followed by running her own accountancy practice since 2008 means that she has a real life understanding of the pressures of running and growing a business. As well as her work in tax consultancy and business planning, Faye sits on the advisory boards of a number of companies, including Funny Women and Sister Snog. She can be found at http://www.fayewatts.com