Michele Paiva is a financial therapist and founder of The Finance Therapist who amplifies others’ financial narratives for empowerment.
A top fear for leaders and visionaries often revolves around financial failure or ruin; this can have significant consequences not only on your personal finances but also on your professional reputation and standing.
While a certain level of caution can be healthy, I’ve witnessed how these fears can act as blocks to success unto themselves. Most of us, if not all of us, arrive in workplaces and careers carrying the norms set up in childhood. Some of those norms make sense; some do not. Some come from places of struggle, while others come from areas of excess. Both can provide skewed ideas of money, money fear and problem-solving.
Ten Financial Fears
Let’s explore some financial fears in more detail. I believe that identifying these fears that might have originated in your childhood or were projected onto you by others can empower you to overcome them and enhance your leadership skills.
1. Reputation And Image
Those in leadership or high-profile positions often fear financial failure tarnishing their image and professional reputation. While in the hospital with heart issues, I once knew a man who insisted that his family bring his laptop to him so he could still oversee his sales team. He did not want his health to get in the way of his image as a leader in sales. This workaholic was fueled by the fear of not appearing credible, competent and financially successful.
2. The Aftermath
Many people worry about the what-if of financial consequences. For instance, failing or perceived failure financially might include a loss of assets or investments. Many leaders dream of “making it” and see the material rewards as proof of that goal; failure often results in the feeling that all of the work is for nothing.
3. Expectation
If a person is an executive, they are accountable to others; they might have to answer to board members, shareholders and partners. There might be family members that are stakeholders. Failing to meet expectations can lead to a loss of trust and confidence.
4. Responsibility
Many executives, leaders and visionaries feel the weight of taking care of their employees. They worry about making poor decisions that might result in downsizing, adding to a sense of guilt and irresponsibility.
5. Legal Struggles
Financial failure is always emotional, even when it’s “just business.” No one wants to have legal or regulatory scrutiny, lawsuits, fines, penalties or public shame over the repercussions of their actions. I find that heavy emotions like fear are tied to all of these critical legal situations.
6. Regret
Financial failure brings with it roadblocks. These might result in what leaders feel is a cinderblock wall that prevents aspirations and goals.
7. The Future
Even more far-reaching than the direct aftermath of financial failure is worry about the future. If leaders feel that they won’t reach their goals, the next immediate feeling is often hopelessness. They worry that a history of financial failures will make them less attractive to career opportunities and prospects.
8. Self-Worth
Some leaders feel that financial success is the nexus of success and personal identity. Thus, for some, any financial setback feels like a jab to their identity and self-worth. This can lead to personal crises and seep into the family life.
9. Pressure
The fear of financial failure can create pressure to maintain an unrealistic track record of consistent success. This can lead to mental challenges, health issues and other high-pressure issues.
10. The Unknown
Fear of the unknown is an unpredictable evolutionary psychology space that can create a fight, flight or fawn response. This can cause anxiety, agitation and stress. I see it resulting in leaders feeling like a doormat or being scared to take risks.
Addressing Financial Fears
Financial stress requires a multi-faceted approach. The point of this isn’t to blame your past or parents; it is to become aware of it so you can resolve it. Here are a few ways to springboard some empowered healing.
• Find balance. You can’t focus only on practical strategies, nor can you address only a money mindset. Well, you “can,” but why make life harder? It is best if you incorporate and balance both.
• Reframe your perspective on failure. Failure is a valuable learning experience, and while unpleasant, it can help you shift to what is truly important. This mindset alone can help you take more calculated risks and embrace innovation.
• Create a strong financial strategy. You can do this by implementing financial planning, risk management and diversification. Do you have an LLC or a trust? Do you have legalities set up to protect your assets? Do you have enough insurance? Implementing a strategy can help instill a sense of preparedness and stave off financial fears.
• Develop a growth mindset. This should focus on stepping stones in professional and personal growth. Seeking support from mentors, coaches, or therapists can help you to look at long-term perspectives and reframe perceived or actual failures.
• Prioritize compliance with laws and regulations. Don’t always trust others to do this for you. Implement internal controls and seek advice from legal counsel when you have questions.
• Build a strong network. Look to actively engage in industry events in person and online. Get involved with networking programs that are both wide-net focused or niched. These opportunities can help you to learn from others, and they can enhance your credibility. This will help you to feel less stressed from financial fear.
• Diversify. Diversify not only your investments but your skillsets as well. Many people feel trapped when they are stuck in a one-trick-pony financial situation. This often happens when their skills are too niche; you’ll calm some finance fear if you are able to expand your skill set.
Financial well-being is not measured only by monetary success but also by the ability to find balance, establish healthy financial habits and cultivate a positive relationship with money. Reframing financial fears as stepping stones instead of roadblocks can help to make the journey enjoyable.
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