The problem with finance is that nobody likes to talk about it. However what if you need a quick injection of cash, but are too afraid to ask or are too embarrassed to bring up your financial situation?
You are not alone if you are in that boat. A 2012 study conducted by the American Institute of CPAs (AICPA), found that only 14% of people are comfortable discussing their financial problems. Unfortunately, openly discussing finances with friends and family is not something that comes naturally.
Fear, literacy, embarrassment and an overdeveloped sense of pride, can get in the way. It means that when people are seeking financial solutions for themselves or their business, they are often shy in coming forward for help.
The trick for finance experts is to remove the stigma associated with money-based fears and to help clients understand that talking about finance matters can help their financial security.
It’s not all bad news.
Fidelity Investments conducted a study that found 92 percent of women want to learn more about financial planning, and 83 percent want to get more involved in their finances. However, 80 percent admitted to restraint from discussing money with family and friends and only 47 percent feel confident when talking about finances with a financial professional.
Accountant Melissa Browne told the Sydney Morning Herald, “I think the reason there is such an ick factor associated with money is because of the extremes. If you don’t have enough money, you’re not earning what you think you should be or you have too much debt, there can be enormous shame involved.”
The same can be said of those running their own businesses. They need to come forward. They need to discuss their cashflow and the finance options available to them. What they need to realise is that discussing numbers, sharing accomplishments and setting reasonable goals can have enormous benefits and can lead them to companies who can help with money matters.
Opening up about finances can only lead to positive outcomes. It is thus time we had a rethink about the etiquette surrounding financial discussions to create a sense of freedom over financial matters.
If you need some help opening up the conversation about your funding gap, feel free to contact us today to discuss your business’s cash flow.