#398 Want a financially stronger business? Start with your personal money habits
Have you heard the saying:
“How you do one thing is how you do everything”?
Well, how you handle your personal finances will almost certainly be mirrored in how you run your business finances.
And think about it, why would they be any different?
It’s impossible to be magically brilliant at your business finances, if you haven’t got things under control at home. I’ve seen this played out hundreds of times in almost every business I’ve worked with.
If you avoid your bank statements at home, you’re probably not diving into your P&L either
If you overspend at home without budgets, you're likely do the same at work
If you have to pull extra money from your business to keep your account in credit, you’re putting more pressure on your business
The great news is, if you get a grip on your personal finances, it’s so much easier to do it at work.
These 4 personal money habits will ripple through into your business finances
1) Be super clear on what you spend
Avoiding looking at your bank statements might be easier, but it’s stressful not knowing.
Start by getting curious - go through your last few months statements and see where your money actually goes.
This isn’t about guilt tripping you, it’s about you taking control.
You’ll make better spending decisions, and crucially keep more of what you earn.
2) Set budgets that give you freedom
I know budgeting can feel like death.
But weirdly budgets give you freedom because when you’ve set limits that work for you, spending becomes guilt-free.
You know what you’ve got to spend on food, clothes, holidays, and you can enjoy it.
3) Don’t make big spending decisions without a plan
Before you commit to big spends like holidays or a house project, know exactly where the money’s coming from.
Will it mean an extra dividend - can your business afford it?
And, separate topic for another time, but don’t take on debt to do it (unless it’s something like an extension)
4) Where are you spending to “look” successful?
Be honest with yourself. Where are you spending to prove something to other people, or even yourself?
Is it the car finance? The new clothes, or expensive meals out and holidays that will look awesome on Facebook!
This isn’t about judgement, just the awareness to see where you spend and why - because these ways of spending will be showing up in your business too.
Oh Serena, leave me alone! Why does this even matter?
Because when your home finances are calm and organised, your business will be too.
And when you FEEL in control of your personal money, it changes everything.
That low level background anxiety disappears.
You feel calm. And confident. Because finally YOU’RE in control.
You’ll start spending less than you earn.
You’ll start saving more.
And you’ll take that energy, that feeling of control, into your business.
Because NOW you trust that you can do this.
Then you realise something life-changing….
You can control what your future looks like🎤
If reading this is a bit uncomfortable, I promise you’re absolutely normal!
In fact, every coaching client I’ve worked with has felt out of control with their personal finances at the start.
So one of the first things we do is face it.
Just one last word.
This isn’t easy stuff. If it was, everyone would be financially secure and sleeping well at night.
It takes work, and you’ve got to want it enough.
Most people will keep avoiding it, and stay stuck.
But you don’t have to. You’re here, you’re reading this, and that already sets you apart.