Have you ever thought about your money mindset?
It’s essentially the way you think and feel about money, and is shaped by your experiences and the stories you’ve heard and told yourself about finances.
Author of Become a Business Money Magnet Justine McLean is a finance coach and educator, but confesses that numbers haven’t always been her strong suit. When she and her husband started a business together and ended up with an unexpected $42,000 tax debt, Justine decided to take action:
“I was definitely that ‘I don’t do numbers’ gal, but the tax debt was a real wake-up call for me — a call to action that no one was coming to save me, and if I wanted to do better with money, I had to be better, get educated, and lean into the discomfort,” says Justine.
Understanding Our Money Stories
Your money mindset is a way of understanding your deeply ingrained stories and attitudes towards money. These beliefs often stem from childhood experiences and societal narratives. Justine says she grew up believing that managing finances wasn’t her responsibility:
“I wasn’t great at maths at school, and my teachers always told me it didn’t matter because my husband would take care of the money so I believed it! Whether from our teachers, parents or trusted professionals like our accountant, these stories can impact our money beliefs and how we deal with money each day.”
There are generally two types of money mindsets: fixed and growth.
A fixed mindset is where you believe your financial situation cannot change, while a growth mindset allows for challenges and improvements. Most people fluctuate between these two. To make better financial decisions, especially in business, it’s crucial to identify and challenge your limiting money beliefs.
Challenging limiting beliefs
Limiting beliefs can significantly hinder your financial success. If you believe that you “don’t do numbers” or can’t understand financial statements, then you might shy away from any kind of financial management – the ultimate head in the sand approach.
But this can lead to poor financial decisions, outsourcing critical tasks without understanding them, or ignoring money matters entirely.
Numbers tell a story, both in business and in our personal lives. By changing the narrative around your money beliefs, you can take control of your financial story and write a successful one.
“You deserve to be the author of your story, it’s time to change the narrative around your money beliefs — feel the fear, dive in, and write the success story you want to live!” says Justine.
“It’s essential to get educated about money. Read a book, talk to an expert, do a short course and most importantly, never feel silly about asking questions or feel bad for your mistakes. When you know better, you do better.”
Strong money foundations
If you’re a business founder, Justine says taking an interest in finances from the start (or as early as possible) is ideal.
“If I were starting a business today, I’d take more of an interest in the finances and incorporate great systems and processes from the start, but the number one thing I’d do is create a cash flow forecast. That’s a measure of all the money coming into the business (and where you expect it to come from) and all the money going out of the business (your direct costs and other expenses).
“Creating a forecast that lasts six to twelve months means you’ll know when you can spend and when you need to save.”
It’s ok to ask for help
If you’re ready to challenge your own limiting beliefs, then it’s time to get out of your own way and ask for help.
“Many of the business owners I see are reluctant to ask for help when needed. Some feel embarrassed or silly, and others don’t want to invest the money. But, spending an hour with an expert who can answer your questions without judgement can positively impact your business and your success,” says Justine.
Small consistent changes can make all the difference, and Justine stresses how important it is to embrace change, and not to let your money or financial knowledge make you feel powerless or overwhelmed:
“Nothing changes if nothing changes! So no matter where you are on your money journey, you need to take action if you want to become a money magnet. It could be through education or simply adding a Money Monday or Finance Friday to your working week – a dedicated, non-negotiable hour where you work on the money.
“Next time you find yourself down in the dumps about money, give yourself a break, be kind, and know that you’ve got this.”
About Justine McLean:
Justine Mclean is a business finance expert, author, speaker, financial educator and host of the Secrets of Successful Business podcast. With 30 years of experience in small business, Justine is on a mission to help business owners increase their financial literacy, build solid financial foundations and create profitable and sustainable businesses. Justine’s new book Become A Business Money Magnet – Simple Habits to Manage Your Money and Supercharge Your Profits is available now. www.linkedin.com/in/justine-mclean-business-money-expert-educator