We all have a relationship with money. Money is a personal and emotional topic for many people, and there is often a bit of shame wrapped up in how we deal with it. I want to share with you four general financial personalities I see working with entrepreneurs. Also, I have been each one of these personalities at one time or another, my relationship with money has evolved over time, and yours will too.
If you see yourself in any of these, if they resonate, I want you to know that you are definitely not alone. These obviously aren’t all of the potential relationships with cash, but these are definitely common ones!
Financial personality 1: Annie
(It’s all on autopay, ignore and pray)
Annies have been told to just put it all on the card, set it and forget it. Her stress comes with overdraft fees and late fees and over limit fees because she doesn’t always have the money in the account when she needs it In a way, she’s afraid to look at her money and believes she isn’t very good with it
So, she ignores it and deals with the emotional stress every month thinking, “I’m in business, it’s supposed to be this way.”
Financial personality 2: sALLY
(Spendthrift and fearful)
Sally operates from a place of financial fear. Constantly calculating and worrying, She is so terrified to make a money mistake, so, she refuses to make financial decisions that involve risk. In effect, Sally is strangling her business’s ability to grow and thrive. She has an almost a hostile relationship with money, believing that there isn’t going to be enough to meet her needs.
Financial personality 3: OLIVIA
(Out earning mistakes, no planning)
The Olivia personality believes that she’s got it all figured out. But in reality, she is just managing what’s right in front of her without planning or having the bigger picture. Olivia’s are treading water financially and making short term decisions without a plan. She puts any shortfalls on the credit card and may not know that her debt is creeping up. She may be growing too quickly, without a financial foundation. And she just ends up bootstrapping month to month. Which causes stress, but she thinks if she just makes more sales, she will be fine. Olivia doesn’t see the financial danger she is getting into. She relates to her money only with what needs her attention right now.
Financial personality 4: Jessica
(Just trying everything and frustrated)
Jessica is following all of the guidance. Use this spreadsheet or this program. And she is trying to do everything right. The thing is, Jessicas don’t understand profit and loss, and that’s okay, but she isn’t taking the time to really learn the basics. So, she’s losing money and is very frustrated. Jessica works so darn hard, but she never keeps any money after the bills and only pays herself sporadically. Jessica feels like the money stuff is just too complicated and is allowing the finances to rob her of her joy of being an entrepreneur.
See more about aligning your business decisions and strategies with your financial personality in my book, The Profit Accelerator for Small Business. Available on Amazon today!