Minority entrepreneurs face greater economic disparities and greater financial trauma. Here’s how to end the silent battle with financial post-traumatic stress disorder (PTSD).

Minority entrepreneurs face greater economic disparities and greater financial trauma. Here’s how to end the silent battle with financial post-traumatic stress disorder (PTSD).

The opinions expressed by Entrepreneur authors are their very own.

Let’s not beat around the bush: finding a straight path to financial growth may be a challenge for any entrepreneur, but for Latin American, Latino, Black and other minority entrepreneurs, the bumpy road often goes deeper than simply numbers to calculate or a math equation to solve.

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For many, their day by day well-being leaves them seat-backed or trapped in loops they don’t desire to be in when it comes to money and financial decisions. These varieties of feelings stem from what is called financial trauma, sometimes called “financial post-traumatic stress disorder (PTSD),” and go beyond direct negative financial experiences or possible financial conflicts you have witnessed in your loved ones or community. This is also due to the generational patterns passed down by our ancestors, in addition to the many systemic barriers that stand between us and quickly creating a path to financial success.

Just consider that ladies in the US gained full rights to participate in economic life in the early twentieth century, and the Sixties were the era in which women could open bank accounts without a male signature. Economic freedom for many minorities got here even later, around the Seventies and Nineteen Eighties, when financial institutions were forced to offer more inclusive services after the financial crisis. Equal Credit Opportunity Act of 1974 has been passed.

However, certain narratives persist today that shape what we call systematic and generational financial trauma:

1. Fear of not having enough
2. Fear of not having someone to provide
3. Fear of the unknown

If you are stuck in financial growth, it is time to take the path less traveled that produces the most financial results and see how financial trauma can hold you back. I’ll share three ways in which financial trauma can impact your progress and provide practical steps to overcome these barriers.

Limited perception of possibilities

In other words, you just don’t have the ability to play the entrepreneurial game of making and finding growth opportunities every day. No matter what, you may’t look beyond your current situation.

Financial trauma can narrow your perspective, making it difficult to look for possible solutions or opportunities that may lead to the next step.

How may this present itself in your development:

You may unconsciously imagine that certain opportunities are “not for people like me,” or you might be too focused on dealing with immediate financial stress to recognize recent opportunities; after all, it is the first effect of trauma that keeps you in the fight or flight response.

You can also be hesitant to take on recent business ventures, fearing failure before you even start. Or possibly you underprice your products or services, convinced that higher prices will scare away customers. When was the last time you opened a checking account and tracked your spending?

How to replantI’m:

Acknowledge the emotions you are feeling when you realize you are stuck at any point in your financial development. If fear or anxiety is holding you back, try to separate your emotions from the situation. Visualize the scenario as if it were happening to another person and remove the power fear has over your decisions. This will make it easier for you to see opportunities and take steps towards development.

Anxiety and stress influence your financial decisions

When financial trauma occurs, anxiety and stress can take over the situation, leading to decisions based on fear slightly than strategy and vision.

This is especially harmful to you as a Latino or Latino entrepreneur, so much so that I treat this issue as the first a part of my financial growth framework, outlining and emphasizing the importance of getting a broad vision and control over your north. For us, clearly and unblurred by anxiety and stress, connecting our big vision to our financial growth will help us overcome the cultural, familial and social dynamics that keep us focused on looking only for money to make ends meet. And is not that the point?

How it could display:

You can often end up second-guessing yourself, making decisions based on short-term security slightly than what’s best for your small business and what aligns with the direction you would like to take your small business and your life in over the next few years. You can also be continually stressed about your money flow, stopping you from making strategic moves that may benefit your small business.

How to beat it:

It’s vital to seek support to overcome these emotions in a context where you understand how they relate to your financial journey.

When you are feeling overwhelmed, stop and take a step back. A financial plan with detailed scenarios of how you prefer to to act beyond your emotions is also helpful.

Avoiding conversation because of cash

Avoiding conversations about or about money often occurs when imposter syndrome occurs, especially when it is associated with financial trauma. While many people experience imposter syndrome when running a business – seeing opportunities but doubting whether you are value it – it’s a different story when funds are involved.

For Latin American or Latino entrepreneurs, there is often a subtle or not-so-subtle clash between how we would like to show up in the world and the financial identity often tied to our heritage, which has also created a subconscious expectation that later partially changes our financial identity. This creates the perfect storm for imposter syndrome to take over, making it difficult to align with your vision and support financial growth.

How to beat it:

Building on what I’ve already shared, this extra layer of imposter syndrome related to financial trauma may be unraveled by recognizing how your identity, heritage, and culture are a part of why you are embarking on this journey and having this vision. Instead of viewing these features as they are presented to us, it is time to recognize them as strengths of your organization and turn them into a driving force.

If you would answer this query today: How has your heritage and identity contributed to your success to date? This answer will begin to break down the barriers in your path.

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