How to Face Your Financial Fears

Running a business can be stressful. Launching a startup is scary. And navigating these journeys in the midst of a global pandemic with unpredictable economic turns… well, let’s just say we’ve got our therapist on speed dial.

But maybe you also need your accountant in your phone’s favorites list as well. A study done two months ago suggests that insight on money issues could make you three times happier in general than someone without guidance.

“In a survey of 1,000 random consumers across the US, Herbers & Company Research found that those with a financial advisor are statistically happier than those who haven’t hired an advisor.” –angieherbers.com.

A Fear That Paralyzes

Financial anxiety is on the rise. A study done by Finra and the Global Financial Literacy Excellence Center last year showed that even before the pandemic, financial insecurity was causing a great deal of stress. While the study was done in regards to personal finances, the same struggles can apply to business finances. You may relate to 60% of respondents who indicated feeling anxious when thinking about finances, and 50% who felt stressed when discussing money.

Women appeared to feel more anxiety than men, with 65% of women indicating feeling anxious about personal finances compared to 54% of men. As more and more women start and run their own businesses, financial anxiety may be a bigger problem now than ever before.

The study cited several factors that contributed to higher anxiety and stress including money management challenges and low financial literacy. These are common struggles for business owners and start-ups. They may feel economic pressure to “save money” and cut costs by doing their own accounting and bookkeeping, rather than hiring an accounting firm.

Even if someone is proficient and confident in their personal finances, the business world can be much more complicated and daunting. And with tax season upon us, the time and energy that goes into financial management can take away from the most rewarding aspects of owning a business.

Financial fears can become paralyzing. Many people cope by ignoring their concerns completely. You may be one of many business owners who have neglected their books or account balances for months. Just to avoid that overwhelming money dread. However, there is a much better way to face your financial fears.

Come On, Get Happy

In the study done in December, Herbers & Company Research found that top-earning Americans who used a financial adviser were nearly three times happier than those who manage their own finances. And those who DIY’ed their finances became statistically less happy as their money increased. Indicating that the more money you make, the more difficult it is to manage.

While this is a study on personal finances, the principles apply to business as well. Is money bringing you stress? Avoidance is not the answer. And an investment in financial advise and accounting can bring you invaluable levels of stress relief.

We all want a healthy work-life balance. This can be more difficult when you own your own business. And if money is causing you the most anxiety, that could well bleed into your personal happiness. So do yourself (and your family (and friends (and neighbors, probably))) a favor and seek financial guidance for your business.

Accountants such as those at Lin Company are not here to judge or scold. We live for benefiting our clients, making their lives easier and more rewarding. We dig deep to diagnose the source of financial problems. And we offer targeted actionable insights. Start a live chat with us today or contact us, we’d be happy to bring a little more happy into your finances.