Understanding our relationship with money is key to thriving as a business owner. Today, we’re highlighting the importance of financial literacy in business.
When it comes to money and financial security, so many of us are on a constant quest to find the “right balance.” The right mindset to prosper in business can be challenging. When planning a business, we often ignore one crucial factor: our internal relationship with money. When we fail to achieve what we desire, we tend to give up.
Our day-to-day conversation seems to cover every topic imaginable, including sex, religion, politics, gun violence, and mental health. As humans, we strive to nurture every relationship. Yet, we fail to acknowledge and nurture our relationship with money, which remains one of the most elusive topics. There is shame attached to not having enough, or having too much. Ever wonder why? It’s our inability to discuss money openly and make it a healthy conversation so it does not come back to haunt us later in life.
Today, we’re going to have an honest and open conversation about all things money — your financial situation, your wealth check-up, and valuable solutions for improving your relationship with money. Remember, you’re 100% responsible for what you have and what you don’t have.
I had to learn the hard way (too)
I’ve spent hundreds of thousands of dollars building brick-and-mortar (restaurant) businesses and burnt myself out before starting my successful virtual business for less than $200. Shouldn’t I have been more successful in my brick-and-mortar since I had more money to invest in the business? What is the difference between the two opportunities? I yearned for earning money my whole entire life. It has always been easy to make money most of the time for me. However, it was just as difficult keeping and investing it wisely to move my financial goals forward.
I had to learn my money lessons the hard way, like most. The first few years in our restaurant business was easy. We had enough cushion, and we were profitable after the first 18 months. Then, we fluctuated from a good quarter to a bad quarter, and there was no consistency in our revenue. In spite of being frustrated, I knew that something was keeping me from achieving success in my business. Can you relate?
Before we dive deep, let us ask ourselves, “Is my business generating the revenue I want?” If the answer is a resounding, “NO” or, “I would like to” or, “I haven’t yet” – read on!
I’ll let you in on a little secret…
There are no business problems. As a business owner, your business reflects who you are as a person, and how you operate on a personal level. The way you handle money in your business has everything to do with how you handle your personal finances.
Pause, take a deep breath, and make sure you pay close attention to what I’m about to reveal here.
Money Stories – What are they?
Money stories are your beliefs and thoughts about money. It’s the way we all relate to money. As a child, most of us were told stories about money by our parents. We all were raised with a particular view on money. Beliefs about money were ingrained in us without we are being aware of at a young age.
Perhaps you may have heard one or more of the following phrases –
‘Money doesn’t grow on trees,’ or
‘Money is hard to make,’ or
‘You have to work hard to make money,’ or
‘Money is evil,’ or
‘Rich people are filthy.’
In the business world, we may often ask, “How does this all relate to my business?” I grew up with contradictory beliefs about how money should be spent, since my dad was a spender and my mom used to save.
Due to these factors, in my early years of business, I experienced a steady rise followed by a steady decline. It was always a rollercoaster ride. And to go back further in my early years of working, I made a substantial amount of money, but soon enough, I spent it all on frivolous things – just like my dad. When it came to saving money, even though heard my mom tell me I needed to save, I had no idea how to do it. In my business, I was constantly ‘investing,’ which basically meant spending money and justifying my decisions. I did not set aside any profits in my first years of business.
As I struggled with those beliefs listed above in my head, I didn’t care about making money because, as a good person, I didn’t want to become corrupted and filthy. Earning money meant becoming unclean.
When it comes to money, understanding the eight money types is key
There are eight money types participating in the game of money.
- First, it’s The Innocent, those who avoid money matters like the plague. They are committed to safety at all costs.
- The Victim – money types who are prone to blaming external forces for their financial woes.
- The Warrior conquers the money world and is generally considered successful in business and finance.
- The Martyr tends to be too busy taking care of others’ needs, rather than taking care of their own. Martyrs are, by nature, gamblers.
- The Fool seeks out financial shortcuts in an effort to make money.
- The Creator or Artist type is on a spiritual or artistic journey, often struggling to live in the material world, and often in love with money and hating it at the same time.
- The Tyrant uses money to control the people, events, and circumstances around them. Tyrants often hoard money and use it to manipulate and control others.
- In terms of money, The Magician is the ideal type. Using both material and spiritual dynamics, Magicians are capable of transforming and manifesting their own financial reality.
Taking control of your relationship with money
I have been trained by Money Coaching Institute, where we learnt that how we treat and have conversations around money is the start to ultimately heal our relationship with money. It is called “awareness”. Then, by being aware, we can begin to change our behavior of how we handle money. Once you have identified which money personality or archetype you are, you can begin to adapt the following changes:
Avoider: Engage in money dates with yourself, and gain support from your bookkeeper or accountant or coach to look over your finances on a regular basis.
Spender: Be aware of your spending reasons and ask yourself why you spend. Most importantly, what do you feel when you’re spending or shopping? Budget planners are a great tool to establish a monthly budget if you want to keep track of your spending.
Saver: Set aside a monthly budget to spend on whatever you want for yourself, and actually spend it.
Martyr or Mother Teresa: Tell yourself: “My expertise deserves to be compensated.” Start to think differently about money or start talking in a new way about it. For example: “You can’t help others when you can’t sustain yourself.”
Essentially, at the end of the day, you want a nice balance between Warrior and Magician archetypes to tame the rest.
It is valuable to have money knowledge, and applying it to the right context in your business journey can help you prosper and thrive.
What are some of the current challenges you face in your business?
If you feel stuck, like you’re constantly spinning your wheels just to pay your bills, you don’t know where all your money goes every month and you feel guilty not being able to spend on yourself, we’re here for you. Book a call with our coach today!