Becoming Financially Fluent Can Be Scary
In the summer of 1999, all I really cared about was learning to windsurf. I had just moved to Hood River, Oregon, and was determined to master the sport.
“Becoming financially fluent is far less scary and way less dangerous than learning to windsurf.”
To learn to windsurf on the Columbia River is scary. There are big waves, high winds, and periodic barges that come down the middle of the river that cannot stop or change course.
My approach as a broke college student was to watch others and brute force my way into competence.
With this approach, I started to adopt a few coping mechanisms to feel safer and less scared out on the river. When the board would start to take off on a plane, I would seek safety and crouch in the back and sink the tail. I would immediately slow down spin the board into the wind and come to a complete stop while others went whizzing by me.
Back at the beach, a well-meaning onlooker gave me some tips. He said, instead of crouching down to feel safe instead, you need to stand tall, straighten your legs, and lean your shoulders out over the board, arms straight to best channel the power of the wind from the sail through your body and into the board.
LEAN OUT OVER THE BOARD?! Stand tall? Could there be a more scary idea?
As I went back out to try again, I grappled with the advice I received and how I really didn’t want to do it.
There was strong resistance in me to doing this sport the prescribed way. It was scary, felt too hard, and impossible.
And yet…here I was - out in the river getting passed every time I did it my way.
So I decided perhaps I needed to trust that the prescribed way might actually work.
With a deep breath and a lot of courage, in the next puff, I straightened my legs, leaned my shoulders out, channeled the power through my body into the board, and wouldn’t you know it, the board lit up with energy, got on a plane and I was doing it — SCARED!
The fear didn’t go away, not at first. But as the competency came, the fear slowly dissipated.
It’s interesting how often we resist the prescribed way of doing things because it feels too hard. We resist and find other ways to feel safe, and then wonder why the competition is passing us by.
If you’ve read this far, the business analogy is hopefully obvious. So many business leaders come to me having resisted learning business finance, instead doing things “their way”, and then wondering why they can’t get past certain road blocks.
What might this look like if you are resistant to becoming financially fluent?
Dissociating during meetings with your CPA and avoiding him/her altogether
Nodding and smiling instead of digging deeper when your CFO says something you don’t understand
Only looking at your bank account balance (and no other reports)
Solving financial problems with sales, marketing, and operations efforts rather than pinpointing the issue
Trying to outearn your profitability issues
Dodging calls from your banker
And the list goes on…
If this is you, don’t worry. I too resisted financial fluency in my early years in business. But I’m here to tell you with certainty:
Becoming financially fluent is far less scary and way less dangerous than learning to windsurf.
Here are a few things to help get you past the resistance:
Understand that NO ONE knows everything there is to know about business finance. It is a journey, not a destination. Start where you are. You are not behind.
The first step is looking at numbers in relation to other numbers so that they tell a story. Humans like stories and stories give numbers meaning.
Learn the difference between cash and profits and how to measure and manage both.
Learn how to forecast your financial statements.
Commit to spending time (60 minutes!) on this each month. Practice makes everything easier and less scary!
We have many resources to help you get started on your journey. Let’s go!