Women haven’t always had the opportunities that we have with money today—that’s why we need to embrace the power we have to be a part of history. In today’s episode, Erinn Bridgman joins us to share how you can build financial freedom with your creative business. Listen in as she shares some of the most common mistakes she sees people making with money, why it’s so important that women are empowered in their finances, and five goals to set for financial freedom.
Today’s episode is brought to you by my free ebook that helps creators avoid the big mistakes that are holding them back from becoming profitable, impactful educators.
Overcoming Limiting Beliefs and Mindsets Around Money
Business owners are good at making money; they’ve found a way to use their talents to build a money making machine, yet where is that money going? As Erinn began working with women business owners, she started noticing a consistent theme that they’re not using or investing their money wisely.
If you have a business you know how to bring in money, but you may not know how to grow your wealth. As entrepreneurs, in charge of your own retirement, this is your chance to think about and manage your money for longevity.
Mistake Business Owners Are Making with Money
Over the years, Erinn has worked with a variety of entrepreneurs, but the mistakes she sees them making with money are pretty consistent:
Not being involved in or managing their money.
Not paying themselves consistently.
Allowing limiting beliefs to creep in.
Let’s dive further into each of these.
Money Management as a Business Owner
Are you managing your money well? Even if you have an accountant or a bookkeeper, you may be doing yourself a disservice by not exploring your options beyond the management of your business’ books. You are the only person who can determine true projections and determine your personal financial plan. This is one of the biggest mistake entrepreneurs are making with their money.
Setting a Salary as a Business Owner
The second mistake is that they’re not paying themselves well or consistently. Your salary number in your business is the most important number in your business. When your salary is healthy, your business is healthy.
How are you setting this salary though? While a Profit and Loss statement is valuable, it’s only half of the view you need to be considering. Take a look at your present to future—taking into account your projections for your business:
What are safe or booked numbers in your business?
What are your expenses?
How can you bring in more?
What does your cashflow look like?
By looking at a 360 view of your business and understanding your business trends, you can set a realistic salary that you’re always able to pay yourself.
Overcoming Limiting Beliefs with Money
Lastly, your mindset is commonly the third mistake. We get irrational and hesitant when it comes to money for no reason. Whether you make the excuse that you’re bad at numbers or you have negative self-talk about what you’re capable of, as a business owner, you have to stop these limiting mindsets and accept that you need to understand the numbers in order to be successful.
Take time to push past fears, think logically about your money, and recognize what opportunities you’ve been offered as a woman in business. You’ve already shown the world that your product or service is worth the trade for money, so believe in yourself when it comes to your own business.
Once you overcome these limitations and mistakes, you’re able to be a more successful business owner.
Your Money is About So Much More than Your Story
When we take a look at history, women have only really been able to find financial freedom over the course of the last century. In the 60’s legislation was passed for equal pay for women—which we’re still working towards. It wasn’t until the 70’s that a woman was able to open a credit card without a man.
How are you contributing to history as a female business owner? Are you growing wealth for your family in ways you wouldn’t have been allowed to 50 years ago? As you begin to think about this, keep things practical.
One practice that Erinn recommends is abundance tracking. Look at the money is coming in and thank it—this is both in business and life. When someone buys you a coffee or gives you a gift—track every single little way that money comes into your life. When you focus on this, you’ll see it expand and your brain will shift into an abundance mindset.
Getting Started in Growing Your Wealth
Many hesitations in growing wealth happen because we tend to hoard money. Whether it’s in business or our personal life, it usually comes from fear. From a business perspective, let’s look at our personal financial goals the right way.
Money is the power behind your values.
Every dream and desire has a dollar sign behind it. You have to be comfortable in the money that is coming into your life by understanding that you are investing in yourself. The money you pay yourself from your business is supporting the life you want—so base that on your personal goals.
By building wealth, you need to create access to the money you need to live on. This means it’s time to build a knowledge-based budget, not a limiting budget.
How much does it cost you to live?
How much are you spending?
Are you okay with how much you spend on certain things in life?
Do you have extra left over?
When you understand this, you’re able to know the numbers for your salary, personal finances, and business finances.
Five Financial Goals to Set for Access
If you’re ready to start building wealth, Erinn has five financial goals to set in order to access financial freedom and build wealth:
Savings (if you’re starting at zero, get to $1,000)
Debt
Investing (Erinn teaches real estate investing since she knows it)
Generosity
Lifestyle Upgrades
Once you’ve set your goals and understand your plans for financial freedom, you can start the shift into believing that your money can make money for you.
When you are a creative entrepreneur, time management is the number one key to preventing burnout! Click to join the list and download my free worksheet.