Talk Money: Starting the Conversation

Most people don’t like talking about money but it doesn’t have to be that way!

Making the topic of money commonplace is the main aim of Talk Money Week (Nov 12th-18th) so I’m working with Wealth Manager Clare Laurie from Enver Wealth Management to open up the age-old taboo topic of future financial planning.

Clare often finds that before she can start planning with a client there are some common issues that need to be overcome. She explained some of these to me, and how to deal with them. Over to Clare!

SHIFTING YOUR MINDSET

Whether we’re conscious of it or not, many of us have negative beliefs around money. We so easily get stuck in a pattern of thinking that can only ever seem to affirm our actions, sometimes it takes a disaster or a moment like this to stop and reassess; speaking to someone about our thought process can be the next step to changing our perspective.

If you recognise anything I list below then have think about how you can shift your mindset:

“I’m just no good with money”

This belief about money may express that you don’t take money seriously enough; it’s not one of your priorities and this may be holding you back from setting and achieving your financial goals.

Creative professionals often struggle to talk about money because it feels in conflict with creating excellent work for good clients. Even certain personality types can feel they are unable to also be good at facts and figures.

Please don’t make this a forbidden topic; recent research by LV= shows that people spend longer researching their summer holiday than their pension!

SolutionTreat money with respect and give it the time it deserves, even if it means taking a look at the unpleasant parts of the business.

Mindset shift #1: “I continually ensure that my money is working for me”

“Money doesn’t make you happy”

This belief often arises from observing people who are so focused on money-making that it becomes their only goal. They sacrifice values, integrity and relationships – even their health – to achieve wealth. This is the extreme that we should avoid.

SolutionConsider what money enables you to do. Focus on the more positive associations, for example: providing choice, freedom, ability to help others etc. It is your responsibility to choose what it means for you.

Mindset shift #2: “My money helps me achieve the goals that are important to me”

“Being wealthy is impossible in my industry”

It is true, no matter how hard you work you are not going to get rich quick. Generally speaking, you are rewarded for the value you create for others, not for how hard you work.

Solution: By focusing on how you can do this better – and then offering it at the price which builds in growth for your business and personal financial goals – you are putting yourself in the right mindset.

Mindset shift #3: “To get wealthy I provide real value for others and ask for a good price.”

“I can’t afford to worry about the future – I’ve got bills to pay today”

Many people are in a ‘scarcity’ mindset, which becomes self-fulfilling. You don’t believe that you are in a position to change things so you don’t try. It can be hard – life is busy, work is busy, when do you find time?

Solution: Shift your thinking from focusing on what’s urgent to what’s important, focus on what has real meaning to you. Step back and decide what you want to get from life and how you’re going to achieve that.

Mindset shift #4: “I keep focused on my long-term goals and ensure that decisions are geared to achieving them.”

These topics are vast and complex and I cannot do them justice in a short article. If any of these issues resonate with you then it is worth considering spending your energies on thinking, not only about your business needs, but also your personal financial planning.

One of the key challenges facing any business owner is how you convert your enterprise into wealth. In other words, how do you extract the rewards for the many years of hard work and personal sacrifices that have been made in building your business?

Many business owners focus exclusively on money within the context of the business and frame their future in relation to the business. You may have an accountant to monitor the health of the business accounts, but are you putting the same focus onto your personal financial success? Your business should serve you as much as it does your clients. But to do that, you need to give it priority.

Have you placed a value on financial independence?

The best plans are those that are simple to produce and act upon.

  1. Calculate the income you’d require when you stop working that will enable you to have the lifestyle that you have worked so hard to enjoy.  (Remember to account for inflation.)
  2. Take your annual income and multiply it by 25 to give an approximate capital sum you’ll require when you stop work to create the financial independence you want.
  3. Take a view of the future value of your business and non-business assets. How close are you to achieving the capital sum?

Many people will need outside help to achieve this, with a concrete plan in place, please get in touch if you want to start the conversation at clare.laurie@sjpp.co.uk or on LinkedIn

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