Believe it or not your money mindset stems from your childhood. It’s something which you have developed from learning about money as you grew up. You may not have considered this but we learn from our family and the relationship our parents have with money is reflected on us. It’s only when you start to dig deep that you can understand why you have the relationship with money that you do. Not to worry though, if your relationship with money so far hasn’t been the best it can be improved with some hard work!
First off you’ve got to stop burying your head in the sand when it comes to your business and personal finances. Ignoring problems doesn’t mean they will go away. By having visibility of your finances you can address any issues head on.
Plan
Now that you’ve decided you’re going to change your money mindset, let’s put pen to paper. Creating a business plan will make you think about your financial circumstances and what you’d like them to look like further down the line. Think about 6 months time, 1 years time, 5 years time and even 10 years time. Don’t hold back, with lots of planning and taking action you will be able to meet these financial goals. The most important thing is to be specific about your financial goals. Write down how much profit or turnover you would like to achieve by a given date. How will you measure this? What steps do you need to put in place to get you there? The more specific your goals are the easier they are to manage and achieve.
Think like a business owner
Have you created yourself a job rather than a business? Think about your why. What made you decide to take the plunge into self employment? Use the passion you felt from the beginning to get your business started. Use this determination to drive your business forward to the next level. Make time to spend on working on your business rather than just in it. This will give you clearer visibility of your finances and your goals. By thinking like an entrepreneur you will start to change your money mindset.
Learn your numbers
Make sure you’re looking at what numbers are actually important to your business. Turnover may be incredible but what does your profit line look like? Having a bookkeeper or accountant by your side to produce insightful reports which are clear and transparent will help you to understand your finances much better.
A bookkeeper or accountant can also help you to budget better and look at ways to improve your cash flow.
Change your habits
As we touched upon earlier we develop bad habits from an early age when it comes to money. You need to learn from your mistakes and really consider how you feel about money. This will help you to overcome any bad habits.
Remember not to compare yourself to others. We are all on different journeys. Managing money can be difficult if you’re not used to it, so having the right people behind you is really important.
If you’re the type of person who loves to spend and isn’t great at saving then keep track of what you spend. Seeing it in writing may shock you and you may be less likely to buy impulsively in future. Set yourself a monthly budget and try your best to stick to it. It won’t be easy but it will definitely help! Imagine how you will feel if you manage to keep to budget and how your money will grow if you don’t keep dipping in!
If you’d like to change your relationship with money this year, then we’d love to support you on your journey. Book a no obligation consultation today.
We look forward to hearing about your business.
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