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Answer honestly: Were you ready to pay the mental and emotional toll entrepreneurship has with money when you decided to go for it? The thing is that many of us embark on this journey for the vision and the passion without being prepared to face or even acknowledge the mental and emotional barriers related to money and financial independence.
What are subconscious habits with money?
They say that approximately 95% of our thoughts, feelings and memories live in our subconscious mind, and with money, this is no different. You have those habits you are conscious of, such as posting on social media, planning your next program or reviewing your month’s financial results for some — all things that you can do. But can you remember the last time you had to think about swiping your credit card for a subscription, or was it something you did automatically, like driving a car?
Before embarking on this journey, you already had predetermined ideas, behaviors and habits with money that were formed long before you directly interacted with it. You learn about money by observing and absorbing your environment, including your family, friends and social circle. The problem? Most of those habits are learned from the buyer’s perspective (how to take advantage of sales, how to hold onto money so that you can have it for longer and those types of things) but not the business owner’s.
Subconscious habits with money are deeply ingrained behaviors and thought patterns related to financial decisions that operate below our conscious awareness. If you have yet to be successful at growing your business and seeing a clear path to your financial independence, this may be the reason.
Related: This Toxic Money Habit Is Becoming More Common — If You’ve Picked It Up, Your Finances Are at Serious Risk, Expert Warns
How do subconscious habits impact financial growth?
Most of the students and private clients I support come to me because either they need to see more money coming in or know they are receiving money but have nothing to show for it financially. In other words, despite receiving more money, they are in the same financial spot they were in before. So the question is, why?
Just last week, I was working with a private client who became aware of a significant subconscious habit with money that she developed when she was 15. Her father gave her what she remembers as her first substantial amount of money. Because she never received financial education at home or anywhere else, she used the funds as she wanted without considering the consequences. As a result, she developed a massive aversion to risk and spending money. This led her to not spend on herself and created a fear of misusing any funds. Thus, her habits with money were of avoidance.
Fast-forward to her business and these same habits continued to manifest. She avoided investments that could grow her business, underpricing her services because she didn’t have a structure of value and feared rejection. It was painful to see her business taking a toll despite her hard work.
Everyday subconscious money habits to track as an entrepreneur
Everybody in our programs wants to know how to shift those subconscious habits better. But before you can change anything, you must become aware of them. I need to say that although in my career I’ve identified some everyday subconscious money habits to track, it is always worth mentioning that each individual will encounter their own unique subconscious habits besides the ones below, like everything in finances, so please execute your own discernment and identify those that are showing up for you as a potential block for your growth as an entrepreneur as well.
Related: Start The Year Strong — Adopt These 9 Money-Making Habits for Entrepreneurial Success in 2024
1. Undervaluing or overvaluing your services and products
Tell me your pricing and its logic, and I’ll tell you most of your subconscious habits. Pricing is one of the most often overlooked assets as an entrepreneur. Yes, you read that correctly; I called it an asset due to how much it builds up your business and your positive flow of money. Your pricing strategy reflects your own money story, possible financial trauma and some toxic habits you might not realize are directly impacting your business.
Underpricing can be rooted in a lack of business structure, misunderstanding of your vision for your business or fear of rejection. Conversely, overpricing can alienate potential customers and show some of the same underlying traits as underpricing.
How to fix it? Learn to master the art of pricing. Combine different pricing strategies, market research and understanding your value proposition. Consider consulting with pricing experts or financial advisors to ensure your pricing reflects the actual value of your services or products.
2. Investing without a plan
It seems like the “invest in your business because you are going to make it work later on” culture has gone way deeper than it should be. Most of my private clients deal with this subconscious money habit: investing in equipment, self-development, platforms and things to theoretically make their business grow — all logical purchases. However, many fall into the habit of making investments without a clear plan. What is the path and how will it directly, on paper and in milestones, work for you and your business? We can say that most of the time, we see the root of this behavior as a subconscious belief that spending equates to growth without considering strategic planning.
How to fix it? Before making any financial investments, develop a detailed investment plan. Assess the potential ROI, the necessity of the purchase and how it aligns with your business goals.
Related: 7 Financial Habits of Successful Entrepreneurs
3. Avoidance of financial understanding
The “I’m not good with money; I never have been and I never will be” mindset is more damaging to your business growth than you can perceive. Avoidance includes delaying or neglecting money planning, bookkeeping and financial reviews. It also includes avoiding talking to a finance professional like myself who can put you on the path of financial growth and doubling down on social media when that will not make the difference.
The real impact of avoidance is that it hides great financial trauma that should be clear so that you can make more accurate and fast financial decisions that don’t let you miss opportunities.
How to fix it? Invest time in financial education. Attend workshops, read books and follow financial experts to improve your understanding of business finance.
