Opinions expressed by Entrepreneur contributors are their own.
Answer honestly: Were you ready to pay? mental and what does emotional entrepreneurship have to do with money when you decided to go for it? The thing is, many of us embark on this journey of vision and passion without being prepared to face or even acknowledge the mental and emotional barriers associated with money and financial independence.
What are the subconscious habits with money?
They say that approximately 95% of our thoughts, feelings and memories live in our subconscious mind, and money is no different. You have them habits you are aware of, such as posting on social media, planning your next event, or reviewing your month's financial results for some – all things 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 you embarked on this journey, you already had preconceived 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 these habits are taught from a buyer's perspective (how to take advantage of sales, how to keep money so you have it longer, and that sort of thing), but not from a business owner's perspective.
Subconscious money habits are deeply ingrained behaviors and thought patterns related to financial decisions that operate beneath our conscious awareness. If you have yet to be successful in growing your business and see a clear path to your financial independence, this could be the reason.
How do subconscious habits affect financial growth?
Most of the students and private clients I support come to me because they either need to see more money coming in or they know they are getting money but have nothing to show for it financially. In other words, despite having received more money, they are in the same financial position as they were before. So the question is, why?
Just last week, I was working with a private client who became aware of an important subconscious habit with money that she developed when she was 15 years old. Her father gave her what she remembers as her first substantial sum of money. Because she never received financial education at home or anywhere else, she used the funds as she pleased without considering the consequences. As a result, she developed a strong aversion to risk and spending money. This made him not spend on himself and created the fear of misuse of funds. Thus, her money habits were avoidant.
Fast forward to her business and the same habits kept showing up. She avoided investments that could grow her business, disparaging her services because she lacked a value structure and feared rejection. It was painful to see her business suffer despite her hard work.
Daily subconscious money habits to track as an entrepreneur
Everyone in our programs wants to know how best to shift these subconscious habits. But before you change anything, you should be aware of them. I have to say that although in my career I have identified a few daily subconscious money habits to track down, it is always worth noting that each individual will encounter their own unique subconscious habits in addition to the ones below, like everything in finance , so please apply your discernment and identify what is showing up for you as a potential block to your growth as an entrepreneur as well.
Connected: Start the Year Strong – Adopt These 9 Money Making Habits for Entrepreneurial Success in 2024
1. Underestimating or overestimating your services and products
Show me your price and its logic, and I will show you most of your subconscious habits. Price is one of the most overlooked assets as an entrepreneur. Yes, you read that correctly; I called it an asset because of how much it builds your business and your positive cash flow. Your pricing strategy reflects your potential money history financial trauma and some toxic habits that you may not realize are directly affecting your business.
The underestimation may be rooted in a lack of business structure, a misunderstanding of your vision for your business, or a fear of rejection. Conversely, overpricing can alienate potential customers and exhibit some of the same basic 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'll make it work later” culture has gone much deeper than it should. Most of my private clients engage in this subconscious money habit: investing in equipment, self-development, platforms and things to theoretically grow their business – all logical purchases. However, many have the habit of making investments without a clear plan. What is the path and how will it work live, on paper and in stages, for you and your business? We can say that in most cases, we see the root of this behavior as a subconscious belief that spending equates to growth regardless of Strategic planning.
How to fix it? Before making any financial investment, develop a detailed investment plan. Assess the potential ROI, the necessity of the purchase and how it fits with your business goals.
Connected: 7 Financial Habits of Successful Entrepreneurs
3. Avoidance of financial understanding
The “I'm not good with money; never have been and never will be” mindset is more detrimental to your business growth than you may realize. Avoidance includes delaying or neglecting money planning, accounting and financial reviews. It also includes avoiding talking to a financial professional like myself who might set you on his way financial growth and doubling down on social media when it won't make a difference.
The real impact of avoidance is that it hides a huge financial trauma that needs to be clear so you can make more accurate and quick financial decisions that don't let you miss out on opportunities.
How to fix it? Invest time in financial education. Take part in the workshop, read books and follow financial experts to improve your understanding of business finance.