I will share the three strategies to overcome financial overwhelm— tried, tested and triumphed by my clients and me.
And why am I talking about this today?
Well, mainly because at the beginning of the year just after the high of such wonderful festivities, it all dawns on you regarding how much has been spent over the holidays, and how much you've earned in the year. You have your corporation tax liability for the previous year, self-assessment, overall annual income and expenditure.
It's a time of reckoning, so to say, when it comes to finances, there's a lot of pressure, a lot of overwhelm and also there's the feeling of not wanting to deal with it. A lot of business owners look away and leave it to the other person, to someone else to deal with it and just wait for the bill.
Why do you need to stop and read this?
It's for your health, that of your family, and that of your business. Hiding your head in the sand is not going to make the problem go away, giving total ownership and authority to another individual is not how you run a business. You need to have oversight of what is going on, inflows and outflows in the business.
Let get started, I'm sharing with you three strategies to put in place right now to overcome financial overwhelm.
First, is identifying the problem identifying the underlying problem that is causing the financial difficulties. And a lot of the times this are life events, such as unexpected illness or an accident, parenthood, family breakdown or unexpected retirement.
Other times they’re business events, such as working under capacity having lots of time, but not enough clients or unable to shift your products.
These are examples that can cause you to be in financial distress, which can easily lead to financial overwhelm. And because it is so hard to deal with at that point in time, you prefer not opening your mail, you prefer not talking to an expert, you prefer not dealing with it, hoping that will go away. It will not go away, you must handle it and knowing the root cause eases the pressure and gives clarity.
The second thing you need to do is create a spending plan. Start this by looking at your incoming and outgoing money.
How much is coming into the organisation?
How much is coming into the home and how much is being spent?
Where is it all going and where is it all coming from?
It is important for you to have an overview of your current state, understand your current state, identify your cash inflow and outflows, then you put a spending plan together to decide where you want your money to go.
It's vital that you're able to prioritise your spending. You know what is coming in, what's going on and you want to focus on what's important to you.
The very last strategy for tackling financial overwhelm is prioritisation. Prioritise where you want to put your money and spend your money to achieve your financial goals.
Based on your prioritisation what actions need to take place….. increase income, re-direct funds to another project or reduce money to a specific piece of work?
Determine what the problem is, and what is causing the difficulties, understand where your money is coming from, and where it is going to put in place a spending plan based on your priorities of what you want. Simple!
Those are three strategies to deal with financial overwhelm. As you can see, they're very easy to implement, very easy for you to put in place right now so that you're able to start tackling that issue that you've not been putting off all this time. Don’t let it become bigger and bigger and fester and fester.
In conclusion, it's important to do this so that you are not overwhelmed and physically ill. Financial stress has been linked to anxiety, panic attacks, sleepless nights, backache, heart attacks, and deaths. That's how serious this is.
That’s why you need to take action now. Not taking action leads to these can consequences that have a knock-on effect on your health, family and business profitability.
Imagine yourself in control of your finances, knowing where your money is going, how your money is growing and feel like an adult about your finances.
To have oversight of what you can achieve when you are in control of your money, I encourage you to download the Financial Planning Checklist for Visionary Businesswomen. It gives you a view of your financial landscape that will help you scale your business, increase your passive income and give financial security.
Are you F.A.T (financial action taker), what strategies have you used to overcome financial overwhelm?