18 Jan Let’s “Talk” Money
Have you ever avoided initiating an important conversation about money?
- Maybe you want to invest in a business and are hesitant to discuss it with your spouse?
- Maybe you and a business partner have completely different ideas about handling finances and setting prices for products and services?
- Maybe you are hesitant to ask for money that is owed to you?
- Maybe a friend or family member is asking you for a loan?
- Maybe you are hesitant to speak with your employer about the salary raise?
Whether it is with a family member, business partner, friend, client or employer, the topic of money triggers emotions (judgment, fear, shame, etc.) in all of us, which causes many people to hesitate even initiating the topic.
Our past is always a part of us, but it doesn’t have to define our future.
One of the biggest reasons I see clients avoiding the subject of money, is fear of rejection in some form. They have witnessed financial situations that created conflict in relationships (family, business partners, employers, etc.) and they fear bringing that conflict into their current situation. They could be reflecting on negative patterns from their personal history of spending and investing and don’t want those patterns to impact their future. They could have completely different ideas on how to handle finances or what it means to be financially secure, compared to their partners.
Whatever the reason, if you avoid having an important conversation about money, it will negatively impact your relationship (whether it is personal or professional).
Learning how to have confident money conversations is key in owning your financial future.
When discussing money, it is important to be positive and future-focused. These talks need to be geared towards bridging the gap from where you are financially, to where you want to be. Don’t bring any guilt or shame around money decisions from your past into the future. Learning specific strategies to have productive and proactive money conversations can help you own your financial future.
Set a Clear Intention.
Lack of clarity and confusion often lead to chaos, especially where money is concerned. Take the time to get very specific and clear on your desired outcome BEFORE the conversation and write it down. Also, since money triggers emotions in all of us, it is very important to know exactly how you want to “feel” during the conversation. What feelings will be aligned with the goals you want to achieve? Your feelings should pull you forward in a positive and proactive way.
Lead the Conversation.
When you’re initiating a discussion about money, it is important to position yourself as the leader of the conversation. Clearly state what you want to discuss and what you want the outcome to be. Outline how you suggest the conversation flow and check in for agreement before continuing. It is also important to present options. Outline 1 to 3 choices for moving forward and resolving the situation. This helps create structure, keeps your emotions in check and allows you to remain focused on the goal.
Come to an Agreement with Clearly Defined Action Steps.
Having an honest and open conversation about money is important, BUT knowing what happens next is key in moving forward. As the leader of the conversation, repeat what has been agreed to and clearly lay out what the next steps are (including who will do what, by when). Each person should walk away from the conversation knowing exactly what is expected of them and what specific action steps they will take moving forward.
You’ve had a conversation with your partner about investing in your business and they have agreed that a specific amount from your joint savings will be used beginning on the first of next month. You have agreed to put in writing, a plan for repayment of that investment before the money is withdrawn and will discuss with your partner in one week.
You have initiated and led the conversation with a client who owes you money. “I would be grateful if you would pay the $5K balance owed in full right now. OR, we can put in writing that you will commit to paying $1,275 per month until the balance is paid in full. Installment payments include a processing fee.”
Money will always be a part of our lives, so think about that conversation you’ve been avoiding. Set the intention, lead the conversation and get clear on those action steps.
Being able to confidently discuss money will help you own your financial future!
Wishing You Peace & Prosperity,
To Your Success!
Eleni