Childhood Money Experiences & Business Success
What is your earliest memory of money? Maybe you are listening to a tense conversation between your parents about how to afford to pay for something. At the cash register, you were embarrassed because the card didn’t go through and you needed to return some of the food items.
In the video, I will share two ways in which your childhood money experiences might influence your current business success (or lack thereof). In order to understand these effects, you need to pinpoint the behaviors imprinted on your memory.
1. Your Family Never Talked About Money
Was money a taboo subject in your household? Having never discussed money in your family, and it was a hush-hush topic, you may be uncomfortable discussing money now as an adult. You may experience two detrimental effects if your family has never discussed money matters:
1. If you were never taught about the practicalities of money, you may have poor financial knowledge of budgeting, and saving. Even if you have an accountant, you should still be aware of how much money is coming in and going out, and where it is being spent.
2. It may be awkward or uncomfortable for you to discuss your fees with clients. How do you feel when you send invoices or reminders to your clients? If you dread these moments don’t worry, because you have the power to change your current circumstances.
Rather than hiding your head in the sand, you should learn about a healthy money mindset. In exchange for your services, it is normal for you to be paid by your customers, just as if you were employed by a company. Practice speaking about your fees with someone or in front of a mirror. You should also write down why you are asking this amount, as well as the benefits the client will receive through working with you.
Moreover, you could learn about and understand your parents’ backgrounds. Why couldn’t they talk about money matters? Was one of your parents a breadwinner and there was some secrecy around money? Was it considered vulgar to talk about money? Making amends with your past and changing your future is easier when you understand the reasoning behind your parents’ money behaviours.
“In exchange for your services, it is normal for you to be paid by your customers, just as if you were employed by a company.“
2. Your Family Reinforced the ‘Lack Consciousness’
Was your childhood full of statements like ‘money doesn’t grow on trees’ or ‘do you think we’re made of money?’. Being told constantly as a child that there isn’t enough to go around, can lead to a scarcity mindset. In later life, this can have a huge effect on your ability to create wealth and cause you to become a spender. You may not have any knowledge of saving or budgeting and live paycheck to paycheck.
This often means that your business is not growing to its full potential. You are constantly living in a feast to famine cycle, you don’t have a constant stream of clients and you don’t believe that you could charge premium prices for your services. It is possible that you are spending money on unnecessary tools, courses, and subscriptions even if you have a substantial business income.
What to do instead:
• If you are living paycheck to paycheck, you must create a monthly budget for yourself and your business so that you have control over your finances rather than the other way around.
• If you don’t have a savings account yet, I recommend opening one now – you can always start with a small amount (even just 5 dollars a month). Automate your monthly savings, so you don’t need to think about it every month.
• Don’t spend money that you don’t have. Avoid taking unnecessary loans, and thus accumulate more debt.
• Forgive the person who reinforced lack consciousness on you. Learn about their background – what made them adopt that mindset?
• Focus on adopting an ‘abundance mindset’; there is enough business, clients, and money for everyone. Competition is an illusion; your ideal clients will gravitate towards you and your services.
• Focus on improving your business and finances and becoming the best version of yourself.
“This often means that your business is not growing to its full potential. You are constantly living in a feast to famine cycle, you don’t have a constant stream of clients and you don’t believe that you could charge premium prices for your services. ” – Click here to learn about Growth Mindset