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Entrepreneurs on the Worst Financial Advice They’ve Ever Received

The women weigh in on some of the well-meaning but actually horrific advice they received – and what they learned was the truth.

In life, there are good things, good things and bad things that are terribly bad. Money advice is no different. There’s a lot to do, and yet a lot of it just isn’t worth following. When building your career, pursuing a side hustle, or planning to retire, it’s always a good idea to check your sources. While your friends, family members, and mentors may have good intentions, they’re probably not exactly money gurus. In other words, don’t make any financial changes after talking to someone who isn’t a fiduciary — only a certified financial advisor should guide your decisions. That said, sometimes, even when the unsolicited advice we receive is bad, we can still learn a lot. We spoke with five inspiring female entrepreneurs about the worst financial advice they’ve ever received and how they overcame it.

“Any house is an investment.”

When Lesley Eccles, co-founder and CEO of Taste, bought a house with her husband, they also took another big step forward: they started a business together. That’s when they were faced with two options with their mortgage payments. They could only pay interest, or pay interest and principal. They had no income for a year, so against her sensible inner voice, she was persuaded to take out an interest-only mortgage. “I rationalized myself thinking it would only be for a few years at most. What we saved on mortgage payments, we used to support our young family and ourselves for over a year,” she continued. “It was a risk, but without taking that risk, we couldn’t have started our business, which is now the largest sports betting company in the country.”

Did she follow the advice? She did — she’s happy to own it. (But she says she would be hesitant to encourage anyone else to do the same!)

His best advice“The first thing to do is make sure you fundamentally understand what the risks are, if any, and then ask yourself if you’re comfortable with the materialization of those risks. Be sure to seek advice from more than one source and talk to someone you trust who has financial savvy and has had positive results themselves,” she shares.

“Put your money in a savings account and leave it alone.”

Cate Luzio, Founder and CEO of Star, says the worst financial advice she ever received was also the best. He was told to put his money in a savings account and leave it alone. While this forced her to focus on storing money, there was one part missing: investing rather than spending it.

Did she follow the advice? She did, until she realized how much money she was leaving on the table by not investing. She wished she had hired a financial advisor sooner. His invested savings allowed him to finance himself and build his business, all without going into debt.

His best advice“Bringing the discussion about money out in the open allows others to learn from their mistakes – which is a good thing – and to share advice. It also prepares women to be better not only at discussing money, but also with their spouses/partners, bosses, business partners, investors and more,” she says. “Eliminating stigma is a challenge, but it can be done. The more women who speak out, the better.

“Accept a deal since you’ve been offered one.”

A few years ago, when Abby Taylor’s company, Playa Bowls, had ten stores, they were approached by a venture capitalist to sell the company. At the time, they were still new and had no idea what the process would entail, and as Taylor says, they didn’t have the proper guidance to make a decision of this magnitude. Many people said she should take the deal because her business might be a “fad”.

Did she follow the advice? No. Taylor said deep down they knew they had potential and wanted to develop in their own way. Instead of taking the cash, they stuck to their values ​​and goals, and today they have over 100 locations. And they also have full ownership of the brand.

His best advice“Trust your instincts. If you believe in your business and know you have something special, don’t sell yourself. Hold on for as long as you can and build a strong team to create a foundation for growth. Finding people you trust to surround yourself with is also very important. Being able to bounce ideas off the people around you is essential to your success. Don’t be afraid to ask questions if you don’t understand something or if you have a hunch about something that particularly involves money,” she shares.

“Improve your lifestyle to stay motivated.”

When entrepreneur Melissa Machat was building her empire, she was told to improve her lifestyle to stay motivated. By increasing her expenses, it would mean she would have to work harder to keep up with her bills.

Did she follow the advice? At first, she bought a luxury car and upgraded her vacation. But at the end of the year, she was looking at a zero-balance savings account. She told herself she could always earn more money to buy more things, but then she was slapped when the taxes were due. She had nothing left and knew something had to change. “I became obsessed with saving and wanted to learn how to build wealth and work smarter, not harder,” she explained. “I learned to make my money work for me instead of trading my time for money, and I’m forever grateful that I got through the roller coaster of debt because it completely changed my life.

His best advice“It’s really easy to get caught up in thinking someone has more money than they actually have because we focus on gross income, not profit. You have to know what you’re comfortable with and follow your own intuition,” she continues. “Get rich schemes are just that – schemes – so be careful who you listen to and always get multiple opinions.”

“Women just don’t get the same financial education as men.”

For contractor Erin Busbeeit’s actually the lack tips that really stand out – the things that aren’t taught or shared. As she says, even today, gender stereotypes are prevalent, and women often don’t receive the same financial education as men. This impacts self-confidence to build a career or ask the right questions. “For a very long time, I was even afraid to talk about money because I didn’t want to appear uneducated or naive,” she shares.

Did she follow the advice? She sought out her own crash course in entrepreneurship: “I really made it a priority to learn about finance. I took several courses, hired coaches and read dozens and dozens of articles in an effort to learn more about money. By educating myself, I have a better understanding of numbers and data.

His best advice: Busbee suggests women explore their financial mindset, as we may have deeply ingrained and misguided beliefs that no longer serve us. “I grew up quite poor with a single mother, one of four children. We barely had enough money to pay the bills. uncomfortable with money. And uncomfortable with abundance,” she continues. “It’s important to eliminate those old, outdated beliefs so that you can continue to grow.”

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