Are you seduced by the deep dark hole of procrastination when it comes to your finances? You know the one- it looks like binge watching Netflix and eating Nutella on potato chips instead of filing your receipts and doing your bookkeeping.
Yea, so am I.
A few months ago I had the pleasure of chatting with Lindsay Maloney on her podcast Self-Made and Savvy all about procrastination and your finances. We went deep into why self-employed people get so far behind on their finances and how to crawl out of the procrastination hole and get going on your money.
Here are the highlights (or listen to the full episode):
Money shame & procrastination (3:08)
There’s a lot of shame around money, especially when we don’t think we know what we’re doing. This shame and fear cause us to become overwhelmed and we put off starting the things that scare us.
Once we do get started, we are so ashamed that we didn’t start earlier or that everyone is so much ahead of us that we stop. And this becomes a cycle that keeps us from working on our finances.
One thing to keep in mind is that we all start somewhere and each of us is starting from a different place. That said, so many other self-employed business owners feel like they are lost and behind too. That means you are not alone and you’re actually further along than you think!
Why you need structure to get started (5:32)
One trick to help you get started on your finances is to do one small thing for your money a day. This doesn’t have to be a large project or tedious task, just something that will help you stay engaged with your money.
This trick isn’t just practical (the more small tasks you do now, the less you have to do later), but it also bridges the relationships between you and your finances and helps make them a part of your everyday life.
How to start on your finances when you have so much stuff to catch up on (9:09)
What if you’re really really behind? Should you wait to catch up before starting a new system? No! Just start. The longer you wait, the harder it’s going to be to start any system.
Start with the thing you’re actually going to do. Often we wait for the perfect system that is light years beyond what we can start on right now. When starting, consider what’s accessible to you now and what you actually want to start.
The other benefit to just starting? You’ll have your systems set up, so when you do go back to catch up your finances, you’ll have all your systems ready to go.
Starting slow is okay (17:30)
Sometimes, what we have to get through to start dealing with our money takes more time than actually dealing with our money. And that’s okay! There’s a lot of emotional stuff around money and you may need to take it slow before you jump right in.
We all need to start somewhere and sometimes we need to start doing just a little bit so we can work through our emotional hurdles.
Celebrate yourself for your money wins (25:06)
Do you ever accomplish something and then immediately move on to the next thing without a pause? Me too! It’s so common for self-employed to feel so overwhelmed by the endless to-do list that we don’t ever pause to say, “Hey you! You just rocked your bookkeeping.”
Especially with money, it’s so important to celebrate ourselves for even the tiniest of wins because money is already SO loaded with self-judgement. Celebrating ourselves helps us keep going and gives our inner money rockstar a place to shine.
My awesome new package: Biz Finance Launchpad (31:32)
My new business startup package, Biz Finance Launchpad, goes through everything you need to know and have set up as a self-employed business owner.
We cover what bookkeeping system you should use, go in depth about you tax deductions, build a business budget and owner pay schedule, and develop a chart of accounts, which is the financial backbone of your business.
If you’re struggling with trying to figure out what you can deduct, how to save for takes, and when you should reinvest in your business then this package is for you!
Oh and I also drop some really awesome money organization tips:
How to organize digital receipts (7:03)
What accounting software should you use? (10:05)
How to get your bookkeeping caught up when you’re behind (18:16)
Why separate business accounts makes your accounting easier (21:19)