Here’s something that might surprise you: most business owners who struggle with money aren’t bad at math. They can calculate profit margins, understand cash flow projections, and read financial statements just fine. The problem isn’t their spreadsheet skills. It’s their behaviour.

The knowledge myth

We act like money management is all about knowledge. Learn the right formulas, understand compound interest, master the tax code, and you’ll be financially successful. But if that were true, every accountant would be wealthy, and every economics professor would be driving a Ferrari. The reality is messier. Money decisions happen in the real world, where emotions, habits, and psychology matter more than perfect calculations.

Where behaviour beats brains

The founder who keeps underpricing their services despite knowing their worth. They can calculate their costs, they understand their value proposition, they know what competitors charge. But they consistently price low because they’re uncomfortable asking for money or worried about rejection.

The entrepreneur who avoids looking at their numbers. They’re not mathematically challenged – they’re emotionally overwhelmed. The spreadsheet represents stress, uncertainty, and potential bad news they’d rather not face.

Why this happens

Money isn’t just numbers – it’s tied to our deepest fears and desires. Security, status, freedom, control. When we make financial decisions, we’re not just calculating returns. We’re trying to feel safe, respected, or in control. This is why perfectly rational business strategies often fail in practice. You might know that investing in marketing will generate more revenue than keeping cash in the bank. But if cash in the bank makes you sleep better at night, you’ll choose the lower-return option. And that’s not necessarily wrong. The “optimal” financial decision on paper might be the wrong decision for your psychological wellbeing.

What this means for your business

Stop beating yourself up for not being perfectly rational with money. Instead, design your financial systems around your actual behaviour, not your ideal behaviour.

If you’re bad at saving for tax, set up automatic transfers so you don’t have to make the decision each month. If you undersell yourself, practice higher pricing on smaller projects first, or get someone else to handle pricing discussions.

If you avoid your numbers, schedule monthly “money dates” with yourself and make them as pleasant as possible – good coffee, comfortable setting, celebratory treat afterward.

The behaviour-first approach

Good money management isn’t about becoming emotionally detached from your finances. It’s about understanding your emotional patterns and working with them instead of against them. Some people need to check their numbers daily to feel in control. Others get anxious and make worse decisions when they monitor too closely. Neither approach is right or wrong – they’re just different. The key is honest self-awareness. How do you actually behave with money when you’re stressed, excited, or uncertain? Build your systems around those realities.