Are you shackled by money? Are you irrationally afraid of not having enough of it; petrified of losing it; overly anxious when you have to ask for it; or scared of spending it?
You may be frustrated that you are not meeting your financial goals. Maybe the thought of having too much money fills you with guilt and shame – then you may have fear of money. You would not be alone. According to a survey with 1,021 respondents conducted by GOBankingRates in 2014, 66% of Americans are more afraid of a money-related catastrophe than anything else.
We expect business owners to want to make loads of money. After all, they decided to write their own checks? For several reasons, however, many entrepreneurs are not making enough money from their businesses. Could the main reason for you be your fear of money?
How fear of money may manifest itself in business?
- Undercharging for services regularly.
- Inability to collect debt.
- Avoiding to create and stick to a budget
- Not checking financial records regularly
- Overspending or underspending.
- Inability to negotiate fair deals for your business.
- Failure to pay taxes and other creditors.
- Avoiding sales
- Hiring incompetent staff because you do not want to pay for skilled, experienced personnel.
- Disengaged staff because they are underpaid
The Result -depending on the nature of the fear, your business will:
- Experience a crippling cash flow problem;
- Stagnate as money is not re-invested into growing the business;
- Develop a bad reputation and/or bad credit record as money is hoarded instead of paying creditors and staff;
It is not about money. It is about you
What are your beliefs about money?
- “Money is the root of all evil”
- “You will not enjoy life if you are striving for wealth”
- “You can’t get rich doing what you love”
The above are a few beliefs about money that you may have learned.
What are your beliefs about yourself?
- Self-worth dictates what you earn. You cannot charge more than you believe you are worth and you cannot build more wealth than you believe you deserve.
What are your beliefs about your products/services?
- You will not be comfortable charging for your product and service if you do not perceive its value.
- Such negative beliefs, which may be held consciously or unconsciously, affect how you engage with money in your life. T Harv Ekerin his book Secrets of the Millionaire Mind calls it your financial blueprint. Each of us has a personal money and success blueprint already ingrained in our subconscious mind and this blueprint runs our financial life.
Steps to Overcome your Fear of Money
- Understand your beliefs and fears about money. Identify the triggers of fear of money and your responses to your fear. What new beliefs about money do you want to adopt. Establish and imprint these new beliefs.
- Money is there to satisfy your needs. What do you need money for? For example, is it to give a good education for your children? Connect with that need instead of the money.
- Build your self-confidence.
- Learn the principles of value and fair exchange and apply them consistently.
- Connect to the value of your products and services to your clients.
- Create financial policies and procedures for credit management, payment terms and debt collection. Be disciplined to stick to them.
- Manage your spending. Draw up a budget and make checking cash flow a regular habit.
- Create a cash cushion that will keep your company afloat for when there is a sudden economic downturn.
- Support yourself by engaging your business coach.
At BizOil Institute we accelerate your power to grow your business. Through coaching and training let us partner with you to gain more self-awareness and to take focused, goal-directed action consistently with regards to managing your money.