I want to reflect on something that was recently discussed in one of our monthly ‘Business Q&A’ webinars for our Platinum Mastermind members. 

In a client case study, a farming business had based their equipment finance decisions on something their Grandad always told them: “You don’t borrow money on equipment just in case you have a bad year and can’t pay for it.” 

This ‘rule of thumb,’ passed down through generations, was unknowingly affecting the business's borrowing capacity when it came to purchasing land in the present. This got me thinking about how many other farmers are making financial decisions based on ‘old’ thinking… 

Each of us has a financial set point that contains a set of rules regarding what we believe, how we think, and ultimately how we behave financially. This set point is usually passed on generationally and forms the basis of long-term generational wealth patterns you see in the farming sector. 

This is why you can give two farmers exactly the same land, inputs, equipment, etc., and they will still have two very different financial realities. Their behaviours and results around money are dictated by two very different set points. 

You only have to take a step back and look at your parents, grandparents, and great-grandparents’ financial success and how they made financial decisions to get a snapshot of what your generational wealth patterns are. 

For some of you, these patterns will be largely fantastic and will enhance your business. However, for the majority of farmers, these patterns may be restricting their business and creating limitations, much like the case study. 

Most of these patterns go on unknowingly because they are embedded in your subconscious by the age of 10 and play out in your everyday life on autopilot. 

Therefore, it’s essential not only to know your numbers inside out when it comes to your business's financials but also to become aware of the ‘financial rules’ you have created, inherited, and are passing on to the next generation. These rules dictate the decisions you make and, therefore, the results you get in your business. 

So how do you know what these ‘rules’ are? 

Start by noticing how you interact with the finance side of your business.  

• Do you love it or loathe it?  
• Do you avoid budgeting at all costs or embrace it?  
• What do you feel when you are dealing with money?  
• What thoughts pop into your head around money?  
• How do you talk about money?  
• What do you base your financial decisions on, and how do you make them?  
• More importantly, how do your parents and grandparents feel about all of the above? 

Then start asking yourself why. 

Why do I think, feel, talk, or act that way? 

The answers to these questions provide insights into your ‘financial rules,’ which ultimately create the set point that either helps or hinders your business. 

To dive deeper into understanding your financial set point and optimising your farm’s finances, check out our Cash Flow Optimiser Short Course. It includes 15 fantastic modules and bonus templates to help you master your farm finances – currently on sale for $9 (usually $197)! 

And if you’re looking for personalised guidance, don’t miss the chance to book a Complimentary Coaching Call with one of our expert coaches. 

Take the time to ponder these questions and gain clarity on your financial rules! 

Hayley Grosser 

Accountability Coach