4 ways to boost your consumer confidence

If you haven't completely tuned it out by now, recent news from the world of personal finance isn't exactly heartening: Consumer confidence is down. Again. Like interest rates, the stock market's performance, and unemployment figures, consumer confidence is one measure of how well the country is doing economically.

But what is consumer confidence exactly, and how is it measured? As reported monthly by a consumer survey by The Conference Board, consumer confidence is essentially a measure of the gut instinct of American shoppers--more an indicator of our emotions, optimistic or pessimistic, rather than the hard numbers of unemployment or interest rates.

Low levels of consumer confidence are bad news, but there are ways to keep those numbers from getting you down and boost your own optimism.

Fully fund your savings account

It's difficult to be optimistic about the economy these days, but a well-funded savings account can be the best assurance that you can face what's ahead. A 2011 CareerBuilder survey found that 42 percent of workers usually or always live paycheck to paycheck, with no money left over for savings. In the same survey, 6 percent of respondents indicate they aren't making ends meet at all.

Breaking the cycle of paycheck-to-paycheck living can be hard, but experts agree that an emergency savings account is critical not just to your financial health, but also to your emotional well-being. Begin by calculating how much emergency savings you need, and choose from savings accounts with high interest rates to stash the cash. Create and follow a simple household budget to get your fund started.

Increase your income

It may sound glib, but a proven way of feeling better about your economic situation is to bring in more money. We're not talking about solving all your problems with cash--just boosting your household income so that you have more choices about saving and spending.

When was the last time you asked for a raise? If it's been more than a few years and you've gotten only cost-of-living increases--or no increases at all--it's time to gear up for a possibly uncomfortable but necessary conversation with the boss.

If your work situation isn't stable or--lucky you--you've had regular merit increases, look for other avenues. You can consider a second job, for example, or sell things you no longer need.

Know your (net) worth

If you were asked, right this minute, what your household's net worth is, could you answer it? Most financial experts define your net worth as what you own, minus what you owe. Add up your traditional and online savings accounts, your checking account balance and your investments (including retirement). Then look at your home's equity and other big items you own outright, such as your car. Subtract any credit card balances and outstanding loans--including your mortgage or other debts.

This final tally is your net worth. If you're lucky, it's a positive number--but most homeowners with large outstanding balances on their mortgages will come up with a negative number at first. Keep track of your net worth over the long haul. Watching the number slide from negative to positive figures will shore up your optimism.

Set goals for the future

Author and motivational speaker Zig Ziglar said, "If you aim at nothing, you'll hit it every time." This is true with finance just as it is with other goals. Consider some of these common financial dreams:

• Owning a home or paying off a mortgage
• Paying off student loans
• Saving for a dream vacation or toy (a boat, perhaps?)
• Funding a child's college savings

Whatever your goals, small or large, you're more likely to meet them if you are specific. And the more you see progress in reaching your goals, the better you'll feel about your financial state.

It's true that we live in trying economic times, and it can be difficult to feel good about our economy or even our personal financial future when news stories paint a bleak picture. But taking control of your own situation and making concrete choices to set yourself on a better path are the surest way to bolster your own consumer confidence.

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