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I Know What To Do! So Why Don’t I Do It????

Could this be you? You’ve read a ton about investing, attended some classes. You understand stocks, bonds, and the value of diversification. You own a few funds in your retirement account.

Still, you continue to ignore or neglect your money, even though you know better. Why?

Blame it on traditional financial education…where the emphasis is on filling your head with facts rather than fostering your courage to change.

Raise your hand if you’ve ever been given the tools to boost Self-Efficacy, the most powerful predictor of financial well-being. (I didn’t think so.)

Self-Efficacy—a concept developed by the Stanford psychologist Albert Bandera—is a person’s belief in their ability to succeed in a given task or goal.

If you don’t believe you can invest wisely without screwing up irreparably, you likely won’t even try. Or, if you do try, you’ll stop at the first stumbling block. Even worse, you’ll unconsciously make bad choices that reaffirm your limiting belief.

Enhancing financial Self-Efficacy is the secret sauce for financial success. It’s the difference between knowing what to do and actually doing it, between being competent and feeling confident.

Yet, I doubt you’ll be shown how to shore up Self-Efficacy by most professional advisors. But thanks to Dr. Bandura’s research, here are 4 powerful techniques to do just that:

  1. Experience Success—Select a task that’s sufficiently challenging but definitely doable. Have that money talk with your spouse. Organize your financial documents. Balance your checkbook. As the saying goes, “confidence is a memory of success.”
  2. Find Role Models—Observe friends, family, even perfect strangers who are financially savvy. Watching others successfully complete financial tasks provides not only inspiration, but a template to follow.
  3. Get Encouragement—Hang around with people who will cheer you on because they truly believe in you. People who say “I know you can do it!” Stay away from naysayers.
  4. Manage Emotions—if you’re depressed, traumatized or anxious, the inner work is crucial. Read self-help books. Find a counselor Join a support group. Talk to a friend. Whatever it takes to relieve your pain, stress, worry and fear.

What can you do today to increase your Financial Self-Efficacy? Leave a comment below.

Comments & Feedback

  • Paula Zimmerman New York, NY

    Since the pandemic hit, many companies have been good about not charging for their services, or allowing one to pay a small amount. this has somewhat lulled me into a false sense of security around bills, but I know they will begin to charge again in a few months. So I try to keep cognizant of the amount I will owe, so I can develop a spending plan when I do get the other stimulus check. Also, although I haven’t worked at all in five months, just this past month I had two gigs that paid well and a possible third, when hardly anyone in my field is working. I have been focusing on doing a lot of Spiritual and Inner work during quarantine (when I can focus) and I feel the Universe is acknowledging me now!

    • Lisa

      So relieved some of these companies are offering a deferred payment program. I’ve been worried about how people are surviving. I know a couple of people who don’t have credit cards or emergency savings.

    • barbara huson

      Lisa, you’re so smart to stay “cognizant” during this period. And yes it’s a good time to do the Inner work…it’s also a good time to be strategic about regrouping to thrive during these challenging times. And it sounds like you’re doing that too!!! And my I suggest that when you get paid, you put aside a little bit for savings…and kudos to you if you’re already doing that!!!!

  • Lisa

    Barbara, I like this question and you’ve knocked out another thought provoking and motivating article!

    This morning I researched companies that are implementing Blockchain technology into their supply chain. Last year, I wrote an academic paper about the Future Impact of Blockchain technology on supply chains and the correlation between well run supply chains and return on investment, yet I didn’t act on my own findings…..

    I don’t think starting my own company, managing staff, creating a patent for a great idea, owning a bunch of buildings and managing tenants is “my calling”, I enjoy investing.

    I’ve decided on the first company I want to invest in that is now implementing Blockchain. The next step is to save the money. The final step is to make the transaction.

  • barbara huson

    I’d love you to keep me posted on what you’re learning Lisa. I know nothing about Blockchain. Thanks for writing…I always love hearing from you!

    • Lisa


      Keep your eyes on the price of Walmart stock. I would like to buy some when they drop to the $100 mark!

      Their Blockchain went live in Feb 2019. I think Walmart stock will always retain their value, however it’s possible their value might explode in 2025! Blockchain technology creates value by reducing paperwork and middle people on the supply chain by more than 25%. It creates a lot of accountability, too.

      I believe Billy Gates purchased a bunch of them – that man is a visionary. He predicted Covid19 before it happened and in May predicted it would take us 18 months too return to a new normal.

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Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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