“Mastering the Money Game: How to Overcome Financial Impostor Syndrome”
Many individuals struggle with financial impostor syndrome, as revealed by a recent KeyBank study showing that 50% of Americans feel financially stressed. Despite this, the study also found that 45% feel confident in handling a $2,000 unexpected expense, and 34% believe they could manage $5,000 if needed.
The research also uncovered that while 68% of Americans think they need more money to live comfortably, nearly half are less than $2,500 per month away from reaching that goal. Furthermore, 87% are confident in paying their rent or mortgage each month, and 70% can pay off their credit cards regularly.
Financial Therapist Stephanie Zepeda explains that financial impostor syndrome stems from self-doubt regarding financial skills compared to the actual financial situation. One possible cause is setting high standards to achieve desired lifestyles. Zepeda emphasizes the importance of understanding one’s financial data and addressing inherited money lessons that may contribute to impostor syndrome.
To combat financial impostor syndrome, Zepeda suggests three strategies. Firstly, differentiate between comfort goals and aspirations. Next, address inherited money beliefs that may be influencing financial behavior. Lastly, seek to understand and manage the flow of money within your household to alleviate financial anxiety.
By following these approaches, individuals can work towards overcoming financial impostor syndrome and gain a clearer perspective on their financial well-being.
When discussing your hopes and dreams, consider sharing them with your partner or, if single, a trusted friend. It is beneficial to write down your goals in detail, as this can help you differentiate between them clearly. By defining and discussing your aspirations, you can maintain a sense of confidence in pursuing your comfort goals while still working towards achieving your dreams.
Creating an annual budget is essential. Instead of the usual monthly budget, financial expert Zepeda recommends putting together a prospective, annual budget to gain a more accurate understanding of your income and expenses throughout the year. Even if it’s not the beginning of the year, you can start by planning from your current month through December.
Reflect on the money lessons you have inherited and decide which ones you want to retain, adjust, or discard. Understanding and evaluating the money beliefs you hold can not only benefit your current financial situation but also influence the lessons you pass on to future generations.
Combatting financial impostor syndrome is crucial to avoid living with constant feelings of financial inadequacy and undue financial anxiety. By addressing this issue, you can live more intentionally and avoid passing on negative money lessons to your loved ones. Zepeda emphasizes the importance of being guided by hope rather than fear in financial decisions, as fear-based behaviors can lead to financial avoidance and dissatisfaction. By approaching financial decisions with hope and prudently assessing your responsibilities, you can better see the possibilities for your financial future.
