Stop The Fear-mongering and Empower Yourself Through Financial Literacy

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There’s something we see happening WAY too much in the financial industry and it’s also something that we don’t see anyone else talking about, so we’re going to shed some light on this topic and address the fear-based tactics that are being used in the financial industry. Fear-mongering should NEVER be tolerated, especially when it comes to your own money…

It’s quite frankly sad and frustrating how common this is, and it happens more often than we’d like to see in the industry. The bottom line is that no one deserves to feel fearful or shamed for anything regarding their finances, no matter what the situation may be. Especially if you are paying to work with a professional in the finance industry, this is just NOT OKAY and we’re here to let you know that you deserve better.

On this week’s blog, we’re covering:

• How to identify fear-based tactics

• How to make educated decisions

• How to gain confidence and empowerment through financial literacy
  

The first step is recognizing these fear-based tactics

A lot of times, people end up tolerating fear-mongering for way longer than they should because they don’t know how to identify it. The reason why people don’t know how to identify this is because they are not behind the scenes and they don’t see what the risk is. From the outside, it might seem a lot more dramatic than it really is, and this often keeps people stuck with a fear-mongering service provider because they have never experienced anything else and they think this is just how it is. I’m here to tell you, it doesn’t have to be this way and you deserve better!

Here are some examples of how service providers will use fear-mongering to get you to work with them, or keep you working with them:

• Using the IRS as a scare tactic

• Saying that if you don’t do XYZ, then the IRS is going to come after you

• Overall portraying the IRS to be the bad guy

• Making you feel like it is a bad thing to get an extension on your taxes

• Making you feel stupid for asking questions

• Not actually helping you understand your finances and making you feel bad for not knowing

If you want to identify fear-mongering tactics when it comes to the financial professionals that you are working with, you just need to ask yourself this question: Is the professional that you are working with making you feel so fearful that you are afraid to disengage with them?

If you feel even the slightest bit like you can’t disengage with them, there are likely some fear-mongering tactics in play here. They will make you feel like if you disengage with them then your business will crumble, your finances will be a mess, the IRS will come knocking and everything will fall apart. If you can relate to feeling that way at all, I am telling you right now that you are working with the wrong person.

These people use fear-based tactics to keep you strung along and to keep you in the fearful space. You have to take a step back sometimes and ask yourself how are they making you feel and is this how you want to feel around your finances? If you are in this situation, we want you to know how important it is to first recognize these tactics when they are being used and remember that YOU are in control. The ball is in your court, and if you’re feeling off, listen to that feeling and don’t settle for fear-mongering tactics. You and your business will be okay, and if you choose to take that leap and leave your current service provider for making you feel fearful, you will likely watch your business and your finances begin to thrive beyond what you ever thought imaginable.

Watch out for professionals using the IRS to scare you

It pains me to say how common this is… But it’s a reality that exists and the more education and awareness is spread about it, the easier it will be for business owners to recognize it and make changes. It is so common for professionals in the accounting space to leverage the IRS to scare you. Here’s the deal, you started a business, and if you are in business, you are inevitably going to have to deal with the IRS. It is just part of doing business and it is NOTHING to be afraid of.

People will say things like, “The IRS just hired thousands of new employees, so you better make sure your books are in order or else they're going to come after you” or “If you don’t have your books done, you are going to get audited by the IRS.” There really are so many ways that they will use the IRS as a way to fear you into working with them and this is just plain wrong. The IRS is nothing to be afraid of, and there are plenty of other reasons why you should be on top of your bookkeeping than to simply please the IRS. Don’t let ANY service provider use the IRS as a way to instill fear in you because I’m telling you, you have nothing to be afraid of. If you are noticing these fear-based tactics or you feel fearful of leaving your current service provider, please reach out. I will happily connect you with the right person who is NOT going to shove fear-based tactics down your throat and is going to truly take care of you and your finances.

Making the right decisions for your business and your finances

At the end of the day, I think this really comes down to being able to make educated decisions. Whether that is making educated decisions around who you are working with, who you need to bring in, what you need to let go of, or really anything in your business - it is important to recognize that when it comes down to it, you know when you are being fear-mongered. You feel it. You get that nudge, that gut feeling, your intuition, whatever you want to call it, you feel it and you know. Don’t ignore this knowing.

When you understand what is happening, you are able to recognize these tactics and adjust if necessary. Understanding your finances is the key to being able to make these educated decisions, and so if you are not working with someone who is truly helping you understand your finances, then you are working with the wrong person. Doing everything based on these educated decisions will help you feel more in touch with your finances and gain a better understanding so you know how to adjust and move the needle forward with what is the next right step for you and that's getting educated on who do I need support from at certain stages in business?

You need some level of financial literacy to feel like you can understand what’s going on

This can be really overwhelming, but it can also be incredibly empowering. Gaining confidence through financial literacy is going to help you combat any fear and those fear-based tactics that could be being used on you. This all comes back to being educated. Whether you want to learn yourself and get educated through books, resources, courses, etc, or you want to lean on someone who doesn't use fear-based tactics, getting educated one way or another is crucial.

It can be really hard to find someone who's super genuine and is just going to treat you like a real human being and truly support you, but once you do find that person you will know that you are in good hands. There is SO much misinformation out there and so learning to feel empowered and follow your financial instincts to understand things like; What is my P&L? What are my deductible expenses?, can completely change the game for you. At the bare minimum, this is how you should feel about your finances!

There are so many ins and outs of finances and tax regulations and so what is going to make the most impact for you is getting educated with the right professional around your specific situation and circumstances. This will make your life so much easier and is really one of the best things you could do for your business. At the end of the day, when it comes to fear-mongering, being educated is the best way to combat this because when you are educated about what is happening, you can recognize what is wrong and adjust. We see these fear-based tactics being used way too much in the finance industry and we want to show you that the right professionals do exist. They are out there and you just have to find your people. You can grab a consultation with us here, and know that if we are not the right people for you, we will help you find the right people who can take care of you and support you.

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