Latest / Your Money, Your Rules | Financial Mastery, Wealth Mindset, Leadership Principles, Intuitive Decision-Making, Human Design / 92 | Why Most Female Entrepreneurs Struggle With Financial Literacy (and How to Change That)
Transcript
- 0:00Erin Gray: On today's podcast, we're going to be talking about something that can really transform the way that we feel about our finances financial literacy.
- 0:08Erin Gray: And this isn't just about numbers, it's also about feeling empowered and confident in the way that we actually manage our money.
- 0:17Erin Gray: So we're going to dive into what financial literacy really means, like what is the definition, why improving it can make such a positive difference in your life, and I want you to know that wherever you are on your financial journey.
- 0:34Erin Gray: This episode is for you.
- 0:35Erin Gray: I think, the more that I help women, the more that I talk to women women, the more that I have come to realize how often we really do juggle a lot of roles and when we can get really comfortable with money talking money, having money, making money, circulating money, like all of it right Just being comfortable with money, it really helps us take control of our financial life I think, also of our actual life and move forward with more ease and clarity, and so I'm excited to share how you can do this too.
- 1:17Erin Gray: Do you want to create a system to stop avoiding your money?
- 1:20Erin Gray: Maybe you're feeling guilt and shame when it comes to finances your money.
- 1:24Erin Gray: Maybe you're feeling guilt and shame when it comes to finances.
- 1:26Erin Gray: Welcome to your Money, your Rules.
- 1:27Erin Gray: I'm Erin, a former certified financial planner and CFO, and yet I used to avoid my money and had fear, no matter how much we had.
- 1:38Erin Gray: I can't wait to teach you how I overcame my money avoidance and started consistently managing my finances in a really simple way.
- 1:42Erin Gray: It's time to get comfortable with money.
- 1:44Erin Gray: So let's talk about what exactly is financial literacy.
- 1:47Erin Gray: So I actually turned to the Googles.
- 1:49Erin Gray: I went online and I was like what is the actual definition?
- 1:56Erin Gray: And Google defines it as financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting and investing, and what I truly believe is, when you are financially literate, you have an essential foundation for a really good relationship with money.
- 2:18Erin Gray: This can help you start a lifelong journey of learning about financial aspects of your life and, for some of you that are maybe my age or older, I want you to know that it's never too late.
- 2:34Erin Gray: We can always learn more, we can always improve our financial literacy, and I think that when we feel financially literate, we feel more confident, like I think that there is a direct correlation with what we know about our finances and understanding the way money works and our confidence in business, with our money and just overall in life.
- 3:00Erin Gray: So let's talk about the kind of key components of financial literacy.
- 3:05Erin Gray: So you've got budgeting, which I know that that word can be triggering for some of you.
- 3:10Erin Gray: I know it has been for myself and some of my clients, because I feel like budgeting can feel like such a restrictive activity.
- 3:17Erin Gray: But I really want you to reframe that and make it more about freedom and choice for you versus restriction.
- 3:25Erin Gray: So, understanding your income, understanding your expenses, so that you can then make really sound financial decisions.
- 3:34Erin Gray: And when I say sound financial decisions, I don't mean what someone else is suggesting to you, I mean what feels good to you in your body.
- 3:42Erin Gray: S and you know the financial industry would talks a lot about emergency funds and I really don't like that word.
- 3:48Erin Gray: I think that we need to have a having account.
- 3:52Erin Gray: I call it like having, like air quotes having account, because when we look at it from an emergency fund, I think that we're telling the universe that, hey, there's going to be an emergency coming up, but when you have a having account, right, you just have money there If you want to use it for you know, you could even have a separate travel account you could have, you know, separate kid account.
- 4:14Erin Gray: You know you could have these different accounts and I think that when you have just a having account, you have it right.
- 4:20Erin Gray: It gives us more of that sense of peace and security, versus telling the universe we're going to have an emergency and you know that's what we're, that's what we are in the vibration of and that's what we're, you know, sending out to the universe.
- 4:37Erin Gray: So, having some type of cushion, some, some type of amount of money that feels good for you to have, just to have it in case you want to use it for something or something comes up so that you feel safe and secure.
- 4:51Erin Gray: Investing is another component.
- 4:53Erin Gray: Think about ways to grow your wealth slowly, with patience, with strategy, with time, and this is going to look different for everyone.
- 5:04Erin Gray: You know I've talked about, you know, maybe, the first 20 years, you know, from 20 to 40, we invested in some real estate and we invested in the stock market.
- 5:14Erin Gray: But as I've kind of gone deeper into the stock market, I don't necessarily know that that's going to be a strategy that I continue to use, moving forward, and that's okay.
- 5:24Erin Gray: It's just you understanding what is your investing strategy and loving your reasons right.
- 5:31Erin Gray: I think the biggest investment that we can ever make is in ourself, in our brain, in our business, in our emotional wellbeing.
- 5:40Erin Gray: That pays dividends way beyond what I think you, I think, the stock market or some real estate investment, because we have control over our mindset, over our emotional well-being, and I think that that pays, like I said, dividends and I think that's such a wise investment to invest in ourselves and I think that's such a wise investment to invest in ourselves.
- 6:05Erin Gray: I think a lot of women you know debt management is another component of financial literacy and I think a lot of times women look at debt in such a shameful or guilty place versus recognizing.
- 6:20Erin Gray: You know, I had a client.
- 6:21Erin Gray: She had some.
- 6:21Erin Gray: She was a previous doctor and she had student loans.
- 6:24Erin Gray: She had some she was a previous doctor and she had student loans and really helping her reframe that.
- 6:30Erin Gray: Those loans helped her go to medical school, those loans helped her generate a very nice income for her family and so, recognizing that, you know, when we go into debt, that coming from the place of like, are we investing in ourselves and we're going to, you know, make that money back tenfold, 100 fold, or is the debt coming from a place of like I've just decided to go on a shopping spree and I spent the money right.
- 6:59Erin Gray: Very different energy of being in debt, and so really different energy of being in debt and so really understanding what kind of debt do you have, how do you actually feel about it, and then what is your plan moving forward to pay it off.
- 7:17Erin Gray: And I truly believe you know like the financial industry really focuses on payoff debt first, but I don't think that that is necessarily the best advice and I don't think that there's advice for straight across the board for everybody, right, but I do think figuring out how to make more money is a much more valuable strategy because it has your mind thinking about abundance and growing versus focusing on debt.
- 7:41Erin Gray: Also understanding, versus focusing on debt.
- 7:47Erin Gray: Also understanding.
- 7:48Erin Gray: You know financial products right, knowing how things work, like mortgages and loans and interest rates, and how that actually changes things for you, because you know the way that those things work Like.
- 8:00Erin Gray: One of the things that we're working with our daughter right now is showing her, like my financial calculator and showing her how to actually calculate.
- 8:10Erin Gray: Let's say, if she wanted to go get a car loan, what would that actually look like?
- 8:15Erin Gray: And playing with different interest rates, and I think it's really important to understand how money, how finances, work, because we're, when you are making decisions yes, I truly believe in making decisions from your intuition, your that body place, but there are, but there is data that I want to receive in order to make decisions from my intuition and so really understanding how the stock market works, how real estate if you want to get into real estate works you know cryptocurrency is another big one right now you know, like, how does all of those things work so that you can make educated, confident decisions when you're wanting to grow your wealth?
- 9:07Erin Gray: And I think probably one of the biggest ones that gets overlooked a lot is your actual financial mindset and the emotions that you feel with money.
- 9:17Erin Gray: I've been very candid on the podcast and have talked about how, maybe the first 20 years of my life, I would consider myself very financially literate, but emotionally I was bankrupt.
- 9:30Erin Gray: I came from a very poverty conscious mentality, a very fear-based and scarcity mentality, not from an abundant, sufficient place, and I think that we need both.
- 9:43Erin Gray: We need to understand what do we feel in our body and how is that having us navigate our financial life Is our emotions, because we're highly triggered by certain things or we're avoidant.
- 10:00Erin Gray: How is that actually navigating and changing the way that we make our decisions?
- 10:07Erin Gray: So, the beliefs that we hold around money, right, the feelings that we feel, the emotions that we feel, the thoughts that we hold about money right, the feelings that we feel, the emotions that we feel, the thoughts that we think those all impact and shape our actions when it comes to finances.
- 10:21Erin Gray: So, really getting clear on what is your money mindset, what do you feel when I'm talking about learning how to invest, or really getting you know, understanding a budget for you, or looking at different financial products?
- 10:41Erin Gray: Like, what do you feel in your body when I'm starting to discuss some of this stuff?
- 10:45Erin Gray: And if your body feels like it's tensing up and you're wanting to just turn off the podcast, I want you to, first and foremost, give yourself lots of love and grace, right?
- 10:54Erin Gray: This isn't something that's talked about in schools.
- 10:57Erin Gray: It's not something that's openly talked about, which I've talked, you know, have mentioned before, on purpose, I believe.
- 11:02Erin Gray: I really believe that at least in the Western world, we have kept financial information away from the masses on purpose, as a form of control.
- 11:12Erin Gray: But with everything, like everything, it starts with just one step right, noticing what are your thoughts and beliefs around money, what are your emotions around money.
- 11:22Erin Gray: And you know, financial literacy isn't just about knowing all of the technical stuff right, it's about developing the confidence to make those decisions that feel right for you, without the fear, without the guilt.
- 11:39Erin Gray: And this doesn't happen overnight, right, which is fine.
- 11:42Erin Gray: It has been a process for me.
- 11:44Erin Gray: But recognizing that you can get there right, that you are willing to start making different choices so that you can be more financial literate.
- 11:56Erin Gray: So I think you know there's a couple of reasons why financial literacy is so important.
- 12:04Erin Gray: And, first and foremost, I think it's one of my, one of my core values in my business is empowerment.
- 12:10Erin Gray: Right, when we understand our finances, we step into a space of empowerment.
- 12:15Erin Gray: I know I've talked about several times on the podcast, about, you know, looking for a car.
- 12:19Erin Gray: I am highly confident when I go to like my husband does more of the actual like car research, but I am the finance girl and there is nothing that any finance department is going to be able to pull over me.
- 12:31Erin Gray: So when I go to a car lot or when it really comes time to start negotiating, I feel very confident because I've already done my research, I already know what my interest rate is going to be, I already know all of the ins and outs and so there's nothing that any finance department is going to be able to tell me that I don't already know, haven't already made a decision on.
- 12:52Erin Gray: And I think that when you come from that place of knowledge and understanding, you can feel very empowered when you're ready to make those decisions.
- 13:02Erin Gray: Right, and I think the flip side, you know, of why financial literacy is so important is because the consequences of lack of literacy, right, like I've talked to several women who have said, like I wish you know we can't go back and change time but like I wish someone would have taught me some of these things, I wish I would have known questions to ask, because who I am now or where I would be would be vastly different than where I currently am.
- 13:30Erin Gray: And I think that there's always, like you know, the saying about like when's the best time to plant a tree?
- 13:36Erin Gray: Yesterday?
- 13:36Erin Gray: And then, if that's not the case, in planning a tree today.
- 13:39Erin Gray: I think it's the same thing with financial literacy.
- 13:41Erin Gray: You can always start today.
- 13:44Erin Gray: And you know, without understanding financial literacy, it's easy to feel disconnected from our money.
- 13:51Erin Gray: Right, and I think it's a lot.
- 13:53Erin Gray: That's where the shame and the guilt comes in with our money.
- 13:55Erin Gray: That can then also lead to stress and avoidance.
- 13:59Erin Gray: So when we don't understand what's going on with our money, when we abdicate our responsibility whether that be which I've seen with the spouses you abdicate your responsibility with your spouse, or you abdicate your responsibility with the CPA or your financial planner you know we're more likely to make decisions that may not be in our best alignment because we're kind of pushing it off on someone else like oh, so-and-so takes care of that, versus you being very clear on what is important to you understanding finances in your business.
- 14:31Erin Gray: Understanding finances in your business, understanding finances in your personal life and I think you know the impact on being an entrepreneur right, smart business investments.
- 14:42Erin Gray: You know knowing where to allocate your funds to help your business grow in a sustainable way.
- 14:47Erin Gray: This comes back to are you looking at your books consistently?
- 14:51Erin Gray: Are you looking at your P and L?
- 14:52Erin Gray: Do you know your profit margin?
- 14:54Erin Gray: Are you throwing spaghetti at the wall or are you actually looking at things and knowing in what areas are you spending your money and are you getting an ROI for that Right, you know, being confident in your pricing.
- 15:07Erin Gray: You know the value.
- 15:08Erin Gray: They always didn't talk about like, oh, we'll charge what you're worth.
- 15:11Erin Gray: I don't believe that.
- 15:12Erin Gray: Charge what your perceived value is based on your years of experience, your expertise, the value that you bring to the table because of your knowledge, the, the amount of time that you save someone like that is the way that you price your offer.
- 15:29Erin Gray: So let's talk about the common financial literacy gaps that we might experience and then how to actually improve it.
- 15:37Erin Gray: Right, a lot of times women will say that number one they haven't been educated.
- 15:42Erin Gray: Right, it's not in the school systems, it's not in college.
- 15:45Erin Gray: Now, yes, with YouTube and books there's a plethora, and that that is a bonus, that is a benefit.
- 15:54Erin Gray: But growing up, you basically pretty much probably absorbed your relationship with money based on how your parents thought about it, right?
- 16:02Erin Gray: So many of us have been taught to either not talk about money it's taboo, right, like you don't talk about money at the dinner table, or you don't ask people what they make or anything of that sort.
- 16:12Erin Gray: Or, almost like this, you know fear and avoidance of money.
- 16:18Erin Gray: Right, if, if money was a source of conflict, like how it was in my house if money was a constant source of conflict.
- 16:24Erin Gray: What I grew up believing is, like money causes conflict with people.
- 16:30Erin Gray: And then I also saw the benefit of it, right.
- 16:33Erin Gray: So I had this very conflicted relationship with money.
- 16:35Erin Gray: It's like, ooh, I see what money can do, I see I can, how it can be used as a tool, and also I see how it just like can rip apart, you know, a, a marriage or, uh, really have parents fighting with each other.
- 16:49Erin Gray: So, depending on what you've learned about money, starting to really peel apart that onion and figure out what is my relationship with money, right?
- 17:02Erin Gray: So how do you start improving your financial literacy?
- 17:06Erin Gray: I always say start with awareness, right, just go into your books in your company and see where your money is going.
- 17:13Erin Gray: Look at your personal finances and see where your money is going right, just simply being aware.
- 17:19Erin Gray: You don't have to change anything at first.
- 17:21Erin Gray: Just simply being aware of where your money goes is really the first step to understanding what it's doing, where it's going, where it's coming from, starting to set financial goals right, start with.
- 17:34Erin Gray: I always say start with something small because I think sometimes in the beginning, with our nervous system, if we start too big, we can shut ourselves down right, but if we start small and we start hitting those goals, just like a little kid with a sticker, just like a little kid with a sticker, this is the same thing for us.
- 17:55Erin Gray: So, starting with something small and then, over time, growing those goals, obviously educating yourself there's so much information, you know, with podcasts, with books, with YouTube and make sure, I would say, make sure that you're really in line with the teacher, that you're learning right.
- 18:13Erin Gray: I mean, there are some people that are great real estate investors, but they're just not who I want to learn from right.
- 18:20Erin Gray: So pick people that not just are successful financially in their life, but like what is their actual marriage?
- 18:28Erin Gray: Like how do they treat their kids?
- 18:30Erin Gray: Like I look at success as a whole entire package, not just, oh, this person knows how to make money.
- 18:36Erin Gray: It's like great, you know how to make money, but if you have a terrible marriage and you treat your kids like shit, well, that's not success to me.
- 18:44Erin Gray: So, really learning from people and and and that's not to say that you can't pick and choose and you know, kind of pull apart pieces from people that maybe don't have a great relationship with their kids or they don't have a great marriage.
- 18:55Erin Gray: But I think that success and learning from someone a teacher, a mentor it's like how is their overall life right, not just the money part.
- 19:07Erin Gray: And I would say really get involved with your financial planner.
- 19:09Erin Gray: You know if you have one and you're working with them and you've been abdicating responsibility with what they invest in for you.
- 19:18Erin Gray: Yes, they might have conversations they're probably required, you know, to have conversations with you once or twice a year but really understanding, why are you suggesting this?
- 19:28Erin Gray: Tell me more about this.
- 19:30Erin Gray: You know investment and really getting because you're paying for their advice.
- 19:34Erin Gray: Really start to understand and be a person at the table that wants to understand what's going on with your money.
- 19:42Erin Gray: And the final piece is the mindset shift right For financial growth, like understanding your emotions when it comes to money.
- 19:49Erin Gray: Right, your emotions when it comes to money, right.
- 19:55Erin Gray: Our so much of our relationship with money is deeply emotional.
- 19:56Erin Gray: It's so intertwined and it's shaped on how we've grown up.
- 19:59Erin Gray: It's shaped on past experiences.
- 20:01Erin Gray: Maybe we've made some air quotes, mistakes in the past and so we judge ourselves for that.
- 20:05Erin Gray: So we might be a little bit more gun shy, um, or societal messages, like I've heard women be like.
- 20:11Erin Gray: Well, I don't want to be that wealthy.
- 20:13Erin Gray: It's like, well, why not?
- 20:14Erin Gray: Right?
- 20:14Erin Gray: So really noticing when someone says something like, what does your body do in response to that comment?
- 20:23Erin Gray: Or what you see on Instagram or YouTube, or what someone says, what is what is going on in your body?
- 20:31Erin Gray: That will tell you how you're feeling.
- 20:33Erin Gray: And the beautiful thing is, we get to shift those beliefs right If they're not serving us.
- 20:37Erin Gray: So you know, money beliefs that I've had is like you have to work really hard for money, or I might have to work harder than someone else, and so really starting to change the way that we think about those beliefs.
- 20:51Erin Gray: Maybe you have a belief that money feels overwhelming, but switching it to be money, something that I can learn to understand one step at a time, or I'm in the process of learning how to understand money, right, if you've been someone who has said you know I'm not good with money.
- 21:11Erin Gray: If you've been someone who has said you know I'm not good with money, thinking about reframing that and I can make progress and improve, no matter where I start.
- 21:18Erin Gray: Right, think of all the things you've learned in your life.
- 21:21Erin Gray: This is no different, it's just money.
- 21:24Erin Gray: I've learned X, y, z and look at where I've come from, I can also learn money too.
- 21:30Erin Gray: So a couple of mindset exercises maybe.
- 21:33Erin Gray: That you can practice is daily affirmations, which I always suggest making sure that those affirmations are actually believable.
- 21:40Erin Gray: If your body is rejecting what you're saying, then the affirmation and the neural pathways are not going to be built.
- 21:47Erin Gray: So, starting with things like I'm capable of understanding how to manage my money, I'm learning how to manage my money, I'm in the process of learning how to manage my money Affirmations like that are very different and feel very different in the body than I'm excellent at managing my money.
- 22:10Erin Gray: If you're, if you haven't been managing your money and now you are saying I'm excellent at it, the body is going to reject that right.
- 22:16Erin Gray: So use more of a bridge thought, a uh, some words that are a little bit softer for your body to start believing.
- 22:27Erin Gray: I think journaling is always powerful.
- 22:29Erin Gray: Sometimes I journal, sometimes I don't, and I think visualizing you know we all have an imagination.
- 22:35Erin Gray: Whether or not we use it on a consistent basis, that's a different topic, but we all have.
- 22:40Erin Gray: If I were to say right now, imagine a green tree.
- 22:43Erin Gray: You can pull up a green tree in your mind.
- 22:45Erin Gray: The same can be true for what kind of life you want, what kind of business you want to have, who you want to employ, how much money you want to make.
- 22:55Erin Gray: And I think for us really getting not just the physical things that we're visualizing, but like, how is that actually going to feel when you experience that?
- 23:07Erin Gray: That's what we're going for?
- 23:08Erin Gray: And so, really, you know, what does peace feel like in your body when you open up your bank account?
- 23:14Erin Gray: What does ease feel like in your body?
- 23:17Erin Gray: What does freedom to choose if you want to fly first class or not?
- 23:23Erin Gray: What does that feel like in your body?
- 23:25Erin Gray: Starting to really get connected to your body and feeling the feelings, because anything that we want it's because of the feeling we think we're going to have, right, but we can start experiencing those feelings right now, today, and that is actually what is going to create it, you know, quicker, faster, by feeling those feelings on a more consistent basis, being that person, okay, so, to recap, really thinking about where do you stand with financial literacy, right, Using it to empower you to take control of your money, to help reduce stress.
- 24:06Erin Gray: The more educated you are, the more knowledgeable you are.
- 24:09Erin Gray: That can help reduce anxiety and stress about money, understanding it and also help you grow your business right.
- 24:17Erin Gray: When you understand how taxes work, you get to start not fearing sitting down at tax time or tax planning right Like that becomes a more excitable is that the word Excitable exciting experience because you understand how taxes work.
- 24:35Erin Gray: And I want you to remember that it's not about perfection.
- 24:39Erin Gray: I don't believe perfection exists.
- 24:41Erin Gray: It's really about progress.
- 24:43Erin Gray: Are you 1% better than you were yesterday and are you making a conscious effort to be more connected with your money?
- 24:51Erin Gray: I invite you to take one small step today.
- 24:54Erin Gray: Maybe it's tracking your spending for a week, like we talked about, or maybe it's about learning one new financial concept, or emailing your financial advisor or planner and asking them tell me what kind of investments that I'm currently invested in.
- 25:07Erin Gray: Just starting there, right, just take that first step.
- 25:10Erin Gray: No pressure, just progress.
- 25:12Erin Gray: One step that you can take to start to understand your money a little bit better than you do already, and I want to offer.
- 25:21Erin Gray: I've recently started a Facebook community, so if you are looking for a community of women that are working through this very thing, where you want to be able to show up in a safe space to talk about money, I would love to invite you to my Facebook community where you can come and connect and share, because I truly believe that we all need a safe space to talk about money.
- 25:42Erin Gray: I will put the link in the show notes.
- 25:44Erin Gray: The Facebook group is Money Mindset Tips for Women in Business.
- 25:49Erin Gray: I would love to have you love to talk about money and really start changing our relationship with money.
- 25:55Erin Gray: Thank you again for joining me today, for listening, and I'll see you in the next episode.
- 26:01Erin Gray: Did you learn something today?
- 26:03Erin Gray: Do you know another female entrepreneur who might be avoiding her money?
- 26:08Erin Gray: Will you send this episode over to her for me and, if you have it in you, please leave me a review for this podcast.
- 26:15Erin Gray: It helps the show grow and I love hearing from you.
- 26:18Erin Gray: See you next week.