In today’s episode, Renee Cohen is going to be talking about the 3 top money myths that she sees female entrepreneurs deal with, how to overcome them, and the best ways to move forward to become the visionary of your own life.
IE 221: Top Money Myths & How to Overcome Them with Renee Cohen
Renee is a financial planner and does a great job of laying out where your money should be going, and how to know when it is time to cut expenses. She also is offering a freebie that you don’t want to miss!
Educating Women in Financial Power
Renee is based in Los Angeles and works with women all over the country to transform their finances.
Her mission is to teach women how money really works. When we know how money works, we have financial power, and then we can change the world.
Renee experienced a lot of struggles when it came to money and knows that a lot of other women are in the same position that she was once in. This is why she wants to educate and help women when it comes to their financial power.
Understanding Past Money Beliefs
A lot of women struggle with money because of their past and how they were raised. In some scenarios, money wasn’t talked about at all, especially with young women.
The assumption was that a young woman would eventually get married and her husband would handle the finances. That is not how the world works today.
It is up to us to shed the money beliefs that we have held in the past. But we cannot shed those beliefs until we understand them.
We need to have a “why” for the reason we are pursuing financial success. This will be different for every single one of us.
Traditional Values Don’t Equal Dependence
Things have changed when it comes to careers. We don’t pick a career path when we are 15 and stick to that plan anymore. There can be pivots when it comes to our jobs and what we do throughout our life.
We all have to make money. Sometimes your husband might have a job he is passionate about that won’t make a lot of money. My husband is a teacher and he loves it, but we all know that teachers don’t get paid very much.
Because we are no longer caught up in the idea that the husband has to be the breadwinner, I am able to run my business, and my husband can do what he loves and not be worried about being the sole provider for our family.
Having traditional values does not mean that you have to be financially dependent on another person. You don’t know what the future is going to hold, so it is important to be financially independent.
Having Open and Honest Conversations
One piece that a lot of women business owners miss is having open and honest conversations with their partners about their businesses, their finances, their timing, etc.
Our relationship with our partners should be mutually beneficial.
We should be able to ask our partners to watch the kids while we work on photographing a new recipe or doing a coaching call. Our husbands will also be able to ask us when they need help with things.
If we have had those open and honest conversations, then our partners will not be caught off guard. Communication is key when it comes to running a relationship.
Financial success is important but it will never work if you are not in open communication with your partner.
Top 3 Money Myths
We are going to cover the top 3 money myths that women believe.
- It’s not the right time. This leads to a lot of shame. We think that other people have gotten too far ahead of us and that we will never catch up. Or we think that we have made too many mistakes in the past to ever be able to get ahead. Every moment that passes by is a missed opportunity.
- I’m not good with numbers/money. No one said you have to be a mathematician. You just have to show up as the CEO of your own life. There is plenty of technology and support to help you in your own journey when it comes to money.
- I spend too much and don’t know where my money goes. You have to show up with intentionality. You are in control of your life and your finances. No one spends your money for you.
The 3 Categories of Your Money
After a year like 2020, we know that sometimes it is absolutely necessary to cut expenses in order to keep our businesses running. How do we know what expenses to cut and when it’s the right time to dial back?
You have to organize what you have coming in and going out on a month-to-month basis.
Renee hates the word “budget.” She likes to call it “cash flow management.” She organizes into 3 main categories:
- Fixed expenses. These are your expenses that are not affected no matter what happens. These are things like rent, mortgage, car payment, utilities, etc. These are the things that you need to pay in order to continue running your life.
- Discretionary/variable expenses. These are not black and white expenses. They might vary month-to-month. This is where your lifestyle expenses fit in, things like fitness studios, facials, massages, etc. Categorize these things into negotiables and non-negotiables. Your non-negotiables can be easily cut out if push comes to shove.
- Savings. This is the category that is the most easily overlooked. If you are not paying yourself first, you are missing out on every opportunity for your future.
How Much Should I Spend?
Your fixed expenses should take up about 50-60% of your overall income. Your discretionary/variable expenses should take up 20%, and the last 20-30% should go to savings.
If you cannot put aside 20% into savings, put aside what you can. Not being able to put aside the full 20% does not mean you just don’t put anything into your savings. 1% is better than 0%.
You have to save. It is an absolute necessity, even if it means you have to cut discretionary or even fixed expenses.
Re-Investing In Your Business
As a business owner, it is important to re-invest in your business. When you have clarity around your money and where it is going, you will be able to re-invest without worry.
Re-investing money into your business is important. You won’t always know the return on your investment. Be okay with the fact that you might lose money at some point. Any losses are lessons.
Do your due diligence to try and make sure you will receive a return on your investment. Don’t just spend money on the first business course you see. Do your research and spend your money wisely.
Be The Visionary
One of Renee’s biggest money tips is to have clarity. When you have clarity, you can show up as the visionary of your life.
You can hire all the financial planners, bookkeepers, and use all the software in the world, but no one can truly help you if you are not the visionary of your life.
You have to be willing to show up with awareness and clarity. You are the boss.
Renee is offering a free 30-minute money strategy call to all of my listeners. This call is an opportunity for you to share where you are at in your money journey and Renee will give you some tips and strategies to provide you with clarity as you move toward financial success and power.
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