In the fast-paced world of startups and business growth, building strong financial habits often gets overlooked. Financial habits include consistent behaviours and practices that you regularly undertake to maintain and grow your business.
I am a strong believer in cultivating solid financial habits that align with your growth mindset to build and grow a successful business.
Why are financial habits important?
Financial habits create stability. Just as a successful business requires a well-defined strategy, your finances demand a strong foundation built on consistent habits. By developing these habits, you can maintain calmness, stability and control in your business journey. Crafting a plan for reviewing your finances regularly results in clarity and direction across all other areas of your business.
Tips for building strong financial habits
1. Mind over numbers
Are you caught in the trap of saying that you’re not a “numbers person”? Remember, understanding your finances isn’t about being a mathematical expert. It’s about making conscious choices to achieve the outcomes you desire. Just as you would collaborate with other experts, seeking help from financial advisors or experts can be a game-changer for growth. Embrace the mindset that you have the power to shape your financial future, whether or not you’re a numbers person.
2. Reassess every 90 days
In the business world, change is inevitable and you always need to be adaptable. Similarly, your financial habits should be adaptable. The change of each quarter presents an ideal opportunity to assess and adjust your financial requirements. Just as you can pivot business strategies, consider this an opportunity to pivot your financial habits. Review your goals, analyse your spending patterns, and make necessary adjustments if required. The consistency of adapting to change will drive lasting financial success.
3. Embrace growing pains
Successful businesses aren’t perfected overnight, and the same holds true for financial habits. Developing a growth mindset involves embracing the journey of practice and commitment. Remember, it’s okay to make mistakes along the way – they’re valuable learning experiences. Just as you endured so many growing pains so far, extend the same patience and understanding to yourself as you refine your financial habits.
4. Allocate time for finances weekly
Much like dedicating time to doing your chores, carve out time in your schedule for your finances. Set aside a specific time each week to review your financial situation, track your expenses, and assess progress toward your goals. Make this ritual enjoyable – sip on your favourite tea or listen to a playlist that motivates you. Just as you prioritise other key areas of your business, make sure your financial reviews aren’t falling to the bottom of your to-do list.
5. Monthly reflections
In the ever-changing world of startups, monthly reflections are key to refining your business success. This practice applies to your finances as well. Set aside time at the end of each month to review your financial achievements, assess any deviations, and realign your goals if needed. This proactive approach ensures that you’re always on track to meet your financial aspirations.
Your financial journey will thrive with intentional habits. Remember, it’s not about being a numbers expert, it’s about being empowered to make informed decisions. By dedicating time, adapting to change, and committing to practice, you’ll build a foundation of financial stability that complements your business. When you set fundamental habits and consistently stay on top of your finances, you’ll soon find yourself navigating financial decisions with confidence and a sense of control, reducing stress and uncertainty.
