Steps to get off the Money Shame Train
The number one common factor I’ve seen throughout small business owners is shame.
And unfortunately, most that shame is around their finances or lack of efficiency or flow within their business.
Does that sound like you?
When people, who are just doing their honest best, tell me what they're doing and there's more self deprecation and apologies than explaining what's going on - it breaks my heart.
I see this problem as two fold:
First
The accounting industry is rarely conducive to new learning on top of the fact accountants tend to be very black and white type people (which is part of what makes an excellent accountant! You WANT the positive side of this trait with people who work with your numbers)
I was very fortunate that the accounting firm I worked at was very open about educating and answering questions because she grew up in another country where they see the value in shared knowledge. She talked of horror stories about working at other firms here in the US while trying to be a new accountant.
Now, this is not all accountants - I've worked with some incredible ones through the years who've used their black and white type personalities as a super power and freely share information along the way.
IMHO, those are the one's you always want to have in your corner.
From my experience, those of us who use this as a super power will admit their mistakes when pressed with a question, instead of belittling or shaming you for asking the question. We take the time to see you as a human doing their best and do our best to help you along the way.
The pattern I unfortunately see most of the time is the person asking the question starts to doubt themselves because the person seen as a professional just told them THEY were wrong or talked to so far over their head that it makes it challenging to ask another question.
Has this happened to you?
I've heard stories that have made my blood boil.
Because look - your finances are THE most important thing within your business. Most businesses need it before even getting clients these days. So it's essential that you understand what it all means.
If you've ever been shamed, belittled or maybe felt like you were intentionally talked to over your head and these experiences have made you shut down - please let me show you that you and your business are worth taking the time to explain things to in a way that YOU understand.
Which leads me to problem area number 2..
We have a collective standard of what it means to have our finances on point - but no one talks about it and no one educates people on how to get there.
How many times in your life have you been told not to talk about money?
Then in business, you're just expected to know how it all works, when you might not have even gone to any sort of business school.
And spoiler alert - I have a Finance Degree and my experience of actually getting in and DOING the things has been way more valuable and educational than the tens of thousands of dollars for the piece of paper.
Now, don't get me wrong - I LOVE me some learning. If I could be a forever student → I absolutely would. There's something intoxicating about expanding your understanding of the world that I simply can't get enough of (nerd, alert much?!)
With that said - no classroom will ever prepare you for everything. And that's okay, I don't believe it's suppose to. It's suppose to lay the ground work for critical thinking and problem solving with a base level of understanding.
My point is, if you're using the lack of education as your reasoning to ignore the financial side of your business, I'm lovingly hear to tell you that that's not a valid excuse, my friend.
Maybe you're feeling scared, confused or overwhelmed - those feelings are valid and I don't want to diminish that.
But hear me out.. if you continue to ignore and push things under the rug, it'll only come out bigger and you'll be even worse off. So allow yourself to feel the feels (and man can the feels be REAL!) just don't let them stop you from empowering yourself and your business.
While I am on a mission to close the gap of where we are in society with our financial literacy vs where societies expectations of finances are - until then, it's really important for you to take whatever that next step is for you to feel like you have confidence in your finances.
Here's my ask of you
Gift yourself 15 minutes and make a T-chart on a piece of paper.
On one side, list all the things you DO know around your finances; both education based and for your business specifically.
Ex:
I know what an asset is
I made x amount last month
I need x amount to reach my year end goal
I check my balances daily
Don't judge what you have written down, just anything that pops up → write it down!
Now, on the other side, list all the things you think you need to know.
Ex:
I know I need to check my balances daily
I need to understand my Balance Sheet
I need to know the difference between an asset and an expense
Again, don't judge yourself for what you have written down or get boggled down by all the things you don't know to write down.
The point of this exercise is to simply show you were you're at.
Now look at it
What do you see?
Are you celebrating yourself for all the things you do know and are doing?!
If not - let me celebrate for you!!
I'm so proud of you!!
Look at that list, my friend!
In Conclusion
Too often we focus heavily on what we don't know instead of celebrating how far we have come. When we do this, it allows the pressure to come off, just a tad, making it easier to take the next step forward without the shame.
Now that you're equipped with your list of what you feel you need to know - what is your next step?
Comment below or send me an email!
audrey@thegracefulpenny.com