Financial confidence: Why behavior matters
FINANCIAL CONFIDENCE: WHY BEHAVIOR MATTERS
If all it took to be more financially confident were to earn more, then people with the highest incomes would always be the most confident. But the Guardian Study of Financial and Emotional Confidence™ revealed that financial confidence is not just about income. [Graphic of a succulent and a laptop showing a variety of financial strategy graphs]
12% of American workers earning over $200,000/year fall into the least confident segment of the population
Solid long-term financial habits can have up to a 30% greater influence on an individual’s happiness and confidence than income
What behaviors are not working?
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~2/3 of study respondents:
Describe themselves as spenders rather than savers
Don’t prioritize protection for unexpected events
Say they are not good at developing a long-term financial strategy
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37% of American workers say they avoid dealing with their finances all together because they feel overwhelmed
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What do the most confident workers do differently?
87% report feeling more satisfaction from saving their money than spending it
[Graphic of a chat bubble with the tip pointing towards the previous statistic] 23% of their income goes toward savings on average
74% have a formal, written financial strategy
77% of their financial strategies address retirement income planning
95% say they will stick to a financial strategy once it is in place
63% work with a financial professional
How can you change your behavior with money?
Increase your annual savings
Look for unnecessary expenses, especially if you struggle to live within your means
Educate yourself about strategies and products to protect and grow your finances
Create a long-term strategy and stick to it
Work with a financial professional to refine your strategy and hold you accountable to following it
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[Graphic of a blue chat bubble with an exclamation mark inside it] A higher income isn’t the only path to financial and emotional confidence.
Improving your money habits can boost your confidence, too!
Source: The Guardian Study of Financial and Emotional Confidence™, 2021
Brought to you by The Guardian Network© 2022. The Guardian Life Insurance Company of America®, New York, NY
2022-139686 Exp. 6/2024