If you've wondered about the connection between earning more money and enjoying healthy self-esteem, you're not alone! Researchers found that high self-esteem leads to high income levels. If earning money is connected to positive self-regard, then all wealthy people have healthy levels of self-confidence? Not necessarily, according to this study of money and psychology.
How Healthy Self-Confidence Helps People Make More Money
University of Florida management professor Timothy Judge says, "People with high opinions of themselves as teenagers and young adults drew bigger salaries in middle age than their less confident counterparts, and the gap was widest for those from privileged backgrounds."
This means that even if you grew up with wealthy parents, you're more likely to earn more money if you have high self-esteem than if you have low self-confidence (and wealthy parents). The financial status and income of your parents can help you earn money in the short term, but your self-confidence and self-esteem translates to long-term wealth and earnings.
Professor Judge found that self-esteem makes more impact if your parents have professional occupations or backgrounds. People from affluent families earn $28,000 more per year if they're confident, as compared to those who have wealthy parents but have low self-esteem. Those from less advantaged families only earn $7,000 more if they have high self-esteem than those who have lower self-confidence.
Your background makes a difference for your future, but your self-confidence gives you an extra advantage when it comes to making money.
How Self-Esteem Affects Financial Income
Positive self-regard makes a difference in all aspects of your life! When you have high levels of self-confidence, you:
- Are more likely to take risks.
- Don't blame yourself for mistakes.
- Bounce back easier after failure.
- Are more motivated to achieve.
- Have ambitious goals.
- Make less self-destructive choices.
- Are more likely to ask for help or seek support.
- Strongly believe in yourself.
Wealthy People and Positive Self-Regard
Not all rich people enjoy high self-esteem. Earning more money depends on various personality and family factors, one being how the wealth was achieved. For instance, working, planning, failing, and readjusting your goals is more likely to lead to a positive self-concept than inheriting a few hundred million dollars from mom and dad. Struggling to make money and reduce debt – or achieve anything – can lead to healthy self-esteem (unless of course the wealth was obtained through illegal or immoral means).
If you feel bad about yourself, money won't increase your self-esteem. Neither will losing weight, changing your appearance, or buying a new red sports car.
How to Increase Self-Esteem and Earn More Money
One way to build a positive self-concept is to succeed at slightly difficult things – and learn to bounce back from failures. Try setting small challenges at which you're likely to taste success, such as making conversation with a stranger at a party or speaking up at a meeting at work.
Work up to the bigger goals -- like earning a million or more dollars a year -- and go easy on yourself when you stumble.
Laurie Pawlik-Kienlen - Laurie Pawlik-Kienlen is a full-time writer and blogger in Vancouver, BC, and the creator of the Quips and Tips blog series.
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