The views expressed by the business participants are their own.
Answer honestly: Were you prepared to pay the mental and emotional toll when you decided to go for it? The thing is that many of us embark on this journey of vision and love without being prepared to face or even acknowledge the mental and emotional obstacles associated with money and financial independence.
What are unconscious habits with money?
They say that about 95% of our thoughts, feelings and memories live in our subconscious mind, and with money, this is no different. You have those habits you know, like posting on social media, planning your next event or reviewing your monthly financial results with others — all things you can do. But can you remember the last time you had to think about swiping your credit card to sign up, or was it something you did automatically, like driving a car?
Before taking this journey, you already had predetermined ideas, behaviors and habits about money that were formed long before you directly interacted with them. You learn about money by observing and observing your surroundings, including your family, friends and social circles. The problem? Most of those practices are learned from a buyer’s perspective (how to use sales leverage, how to hold onto money for the long term and those types of things) but not the business owner.
Unconscious money habits are ingrained behaviors and thought patterns related to financial decisions that operate beneath our awareness. If you have not succeeded in growing your business and see a clear path to your financial independence, this may be the reason.
Related: This Toxic Money Habit Is Becoming More Common – Once You Take It, Your Funds Are at Big Risk, Expert Warns
How do unconscious habits affect financial growth?
Most of the students and private clients that I support come to me because they need to see more money coming in or they know that they are getting money but have nothing to show for it. In other words, despite earning more money, they are in the same financial position they were in before. So the question is, why?
Just last week, I was working with a private client who noticed a significant unconscious habit about money that started at age 15. His father gave him what he remembers as his first sum of money. Because he did not receive financial education at home or elsewhere, he spent money as he pleased without considering the consequences. As a result, he became very averse to taking risks and spending money. This led to him not using himself and created a fear of misusing any funds. So, his habits with money were avoided.
Fast forward to his business and these same trends continued to show. He avoided investments that would grow his business, underpricing his services because he had no value proposition and was afraid of rejection. It was sad to see his business flourish despite his hard work.
Unconscious daily money habits to track as an entrepreneur
Everyone in our programs wants to know how best to break those unconscious habits. But before you change anything, you should know about them. I need to say that although in my work I have seen some daily habits of unconscious spending that I should follow, it should be noted that each person will encounter their own unconscious habits other than the one below, as with everything related to finances, so please do your own research and identify those that show you as a potential obstacle to your growth as an entrepreneur.
Related: Start the Year Strong – Adopt These 9 Money Making Habits for Successful Entrepreneurship in 2024
1. Under-promoting or over-promoting your services and products
Tell me your values and your mindset, and I’ll tell you most of your unconscious habits. Pricing is one of the most often overlooked assets as an entrepreneur. Yes, you read that right; I call it an asset because of how much it makes up your business and your positive cash flow. Your pricing strategy reflects your money story, potential financial distress and other toxic practices that you may not realize are directly impacting your business.
Low prices may be based on a lack of business structure, a lack of understanding of your business vision or fear of rejection. Conversely, overpricing can alienate potential customers and exhibit some of the same basic characteristics as underpricing.
How is it fixed? Learn to master the art of pricing. Combine different pricing strategies, market research and understanding of your value proposition. Consider consulting with a pricing professional or financial advisor to ensure your prices reflect the true value of your services or products.
2. Investing outside the plan
It seems that the “invest in your business because you’ll make it work later” culture is deeper than it should be. Most of my freelance clients face this unconscious money trend: investing in equipment, development, platforms and things to grow their business — all purchases that make sense. However, many fall into the habit of investing without a clear plan. What is the method and how will it work for you and your business directly, on paper and in important places? We can say that most of the time, we see the root of this behavior as a subconscious belief that spending money equals growth without considering strategic planning.
How is it fixed? Before making any investment, create a detailed investment plan. Assess the potential ROI, the need to buy and how it fits your business goals.
Related: 7 Financial Habits of Successful Entrepreneurs
3. Avoiding financial prudence
The mindset of “I’m not good with money; never have been and never will be” is hurting your business growth more than you realize. Avoidance includes delaying or neglecting financial planning, bookkeeping and financial review. It also includes avoiding talking to financial experts like me who can put you in the way of financial growth and doubling down on social media where it won’t make a difference.
The real effect of avoidance is that it hides serious financial trauma that should be clear so that you can make accurate and quick financial decisions that do not allow you to miss opportunities.
How is it fixed? Invest time in financial education. Attend interviews, read books and follow financial experts to improve your understanding of business finance.
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