7 financial habits to improve your finances in 2022

“If you always do what you have always done, you will always get what you have always gotten,” said Albert Einstein. So, the best way to make a positive change in your business is to try new things.

Admittedly, trying new things is scary at first because we could be wrong and no one likes mistakes. Mistakes are associated with a sense of loss of value, especially when it comes to financial matters. However, there is much more to lose if we do not change, because then we miss the opportunity to grow and improve our business.

That’s why I invite you to read the following financial habits that could make a big difference to your company’s profitability, cash flow, and revenue in 2022:

1. Track all your business expenses – cash, checks, credit cards, everything – to know exactly how much you spend on each item in your budget. Benjamin Franklin said, “A penny saved is a penny earned.” Analyze whether your money is being spent within budget, and if not, ask yourself what you can change. You cannot grow your business until you know all your numbers, so start the sooner the better.

2. Have the discipline to manifest the things you want to achieve in your business. The richest people in the world have this mindset that allows them to make decisions quickly and change them slowly, doing the right thing day after day, even if it’s easier to give up here and there.

3. Rejoice in your business successes – and when you fail, support yourself as you support your friends. As a business owner, you may often feel alone, and the ability to see the positive – to acknowledge your successes and encourage yourself after a failure – is a very important habit. To put this into practice, write down at least one financial success you have achieved in your business every day, and you’ll soon see just how successful you can be at managing your finances.

4. Recognize your weaknesses and work to improve them because as JT Foxx says, “As you change, so you grow.” Your weaknesses are what is holding you back – so be sure to examine which area of your finances is most neglected – cash flow management, profitability, lack of oversight of inventory, employee compensation plans, or other things – and start improving them one step at a time, starting with a tiny – baby step today.

5. Be the never-ending student – keep learning and improving – even though you will not do everything yourself, try to learn something from everything, especially if it has to do with finances – learn the principles of pricing, the rules of cash flow management, the critical controls you must have over the collection system, the key tax issues affecting your business, etc. Remember, you are not meant to be a financial expert, but you need to be able to ask intelligent questions to the experts you hire, to make sure they are doing their jobs.

6. Get out of the complexity – keep it simple in today’s complicated reality. The amount of information in our world is vast and growing, the pace of change in every industry is staggering, and the complexity of the decisions we need to make is ever increasing. So, the ability to see what matters and take care of the real problems, not just the symptoms, is critical.

7. If you feel overwhelmed – ask for help. I am sure you are surrounded by smart and caring people who would be happy to help you if you ask. Ask your team to contribute their talents and knowledge for the good of your business, give them the credit they deserve, and you’ll be surprised how easy managing your company finances can be.

You can adopt one or more of the financial habits listed above, just keep the following in mind:

Pay attention to your thoughts – they become your actions.
Pay attention to your actions – they become your habits
Pay attention to your habits – they become your character
Pay attention to your character – it becomes your destiny

Good luck controlling your finances and have a great 2022!