Table of contents
Perfectionism is often associated with greatness. From the outside, it can appear as ambition, strong competency, and pursuing excellence. But setting impossibly high standards for ourselves and our finances can cause unhappiness, stress, and burnout — all of which are bad for making strategic business moves and managing seasonal ups and downs. Two experts share how to break free of three perfectionistic tendencies so you and your finances can continue to flourish.
Delaying financial tasks
Financial perfectionism may present itself as procrastination for completing financial tasks. A perfectionist may put off weekly to-dos like bookkeeping because they’re afraid of making mistakes, they could feel paralyzed by too many software or system options, or the setting isn’t exactly how they imagined.
“Financial perfectionism is a form of money avoidance, and actually gets in the way of our success,” says Aja Evans, certified financial therapist. “Continually putting off important financial tasks — and the mental burden of those unfinished responsibilities — can cause stress, poor sleep, changes in appetite, and increased anxiety and worry.”
CPA Keila Hill-Trawick adds, “When something feels hard, we’re bound to put it off. This is especially true in finances when we’re afraid that getting the numbers wrong could get us in trouble with the IRS, for example.” To catch up on a backlog of financial tasks, she advises taking a bite-sized approach. “Instead of trying to do everything at once, make a plan to tackle the most urgent tasks first — and one at a time.”
Slow seasons in your business can open up opportunities to reset money habits. It’s common to put routine financial tasks on the back burner while you’re busy. Use slow periods to restore order before the next rush: Catch up on your numbers, review and manage your budgets, update your profit and loss statements, and complete any other money-related tasks.
When you feel like...
“I’ll do that task when everything is perfect.”
You can regain a sense of calm or control by:
“Creating a plan that leaves room for you to be human,” said Evans. Aim to spend one hour on a weekly financial task, but factor in flexibility. You may only have 30 minutes, and that’s better than nothing. Remind yourself, perfect doesn’t exist.
“Reviewing and categorizing transactions weekly means you’re more confident your numbers are always up to date,” remarked Hill-Trawick. Plus, you can use that weekly cadence as a stepping stone to analyze your numbers monthly.
Having a distorted view of your money
A perfectionist may experience money dysmorphia (not a medical diagnosis) or a distorted view of their finances that doesn’t reflect the reality of their situation. They may feel like they don’t make enough money, no matter how much revenue their business brings in. Going through seasonal dips in sales can intensify this skewed perspective.
“Your beliefs about your money directly impact how you understand your success,” says Evans. “If you haven’t healed from old money beliefs, it can be hard to feel secure and stable with where you are financially.”
Money dysmorphia can hurt your ability to make strategic business decisions, too. “If there isn’t a clear understanding of how much money is available, entrepreneurs might underuse their resources and miss opportunities to improve their products or services,” advises Hill-Trawick. “Naturally, businesses need to be efficient with money to stay on top of operating expenses, but there are also investments to be made.”
When you feel like...
“I’ll never survive the slow season.”
You can regain a sense of calm or control by:
Preparing for seasonal dips. Both experts agree that having a plan in place can help debunk a distorted outlook. “Let your numbers paint a clear picture,” said Hill-Trawick. “Look at your cash available and your average monthly expenses; aim for three months of cash on hand as a buffer for those slow periods.”
Valuing perfection over progress
A perfectionist may be quick to find faults and ignore or downplay real progress made over time. Both experts agree that celebrating your wins is a must for your long-term success and happiness.
Pushing past our accomplishments in favor of working toward the next milestone or ideal vision can lead to burnout,” remarks Evans. Focusing on a single perfect outcome rather than recognizing the lessons learned and improvements made along the way can create a tendency to overwork, too. Evans often sees clients in her practice who won’t allow themselves to rest until they’ve hit a specific goal. “Rest is not a reward, but it is necessary to continue to show up,” she says.
Even the small, day-to-day actions play a big role in the success of your business and should be recognized. “The non-splashy wins, like regularly paying team members on time and being able to pay taxes, are all habits that support a successful business,” says Hill-Trawick. “Don’t let unrealistic expectations get in the way of acknowledging everything you’ve done to help your business thrive.”
When you feel like...
“This isn’t good enough.”
You can regain a sense of calm or control by:
“Remembering that ups and downs and seasonal lulls are inevitable,” said Hill-Trawick. The slow season doesn’t tell the whole story of your business; reviewing monthly and annual trends shows how the work you’ve put in has paid off.
Evans advises you to remember where you started and celebrate how far you’ve come. “Think back to when everything you have now felt like a distant dream. How much have you grown and learned since then?”
