We often focus so much on the operations, marketing, and “hustle” of our businesses that we completely ignore the one thing that keeps the lights on: the financials. But for many of us, looking at a bank account or a profit-and-loss statement doesn’t feel like a source of pure chaos and anxiety.
In this episode, I’m joined by Tam Relia, founder of Cents & Solutions. Tam is a former accountant of 16 years who realised that financial literacy isn’t just about math; it’s about money psychology. She shares her powerful journey of losing everything and rebuilding from scratch, proving that money is just a tool and that your mindset is your greatest asset.
Why “Money Psychology” Matters More Than Math
Most business owners make decisions out of chaos because they aren’t financially confident. Tam explains that our relationship with money is often built on patterns we learned as children.
- The Scarcity vs. Growth Mindset: If you grew up hearing “we can’t afford that,” you might carry a scarcity mindset into your business, making you too scared to even look at your bank account.
- Awareness is Step One: You have to ask yourself, “Is this financial pattern helping me today?” If the answer is no, you have the power to change it.
- Confidence as a Leader: When you actually understand your data, you stop making decisions based on fear and start leading with clarity.
Financial Literacy Hacks for Young Entrepreneurs
You don’t need to be an accountant to run a successful business, but you do need to understand these three core pillars:
- Profit vs. Cash Flow: Profit is what’s left after expenses on paper, but cash flow is what allows you to breathe. You can be “profitable” on books but still be broke if your customers haven’t paid you yet.
- The 1% Habit: Don’t wait until you’re making millions to save. Start by putting away just 1% of your revenue into separate accounts for tax, profit, and owner’s pay.
- The 72-Hour Rule: Before making an impulsive business purchase or “sale” buy, wait 72 hours. If you still need it, then go for it; usually, you’ll realise you can survive without it.
Strategic Growth and Pricing
Tam highlights that many women and young entrepreneurs struggle with underpricing because they lack confidence in their value.
- Value-Based Pricing: Price your services based on the value you provide, not just what your competitors are doing.
- The “Result Economy”: Shift your focus from how many hours you work to the results you produce.
- The 2% Reality: Only 2% of women-led businesses get VC funding, often because they don’t know their numbers when asked. Knowing your profit margins is the key to growth.
Creating a Business That Runs Without You
Tam shares her “No-Fridays” rule and how she maintains balance by focusing on tasks that bring her closer to her goals.
- On the Business, Not In It: Your goal should be to build a system that can eventually survive without you.
- Strategic Networking: Ask yourself which events are moving you closer to your “higher self” and your legacy.
Connect with Tam Relia
- Website: centsandsolutions.com.au
- Email: tr****@*****************om.au
My Challenge to You
This week, face your fears and look at your numbers. Spend just 30 minutes looking at your cash flow. Identify where your money is coming from and where it’s going. Remember: you weren’t born with financial confidence, you build it by taking action.
Enjoyed this episode? If this episode helped you rethink how you view your business finances, share it with another young entrepreneur who’s ready to build financial confidence and work smarter, not harder.
Highlights
- 00:57 Cents & Solutions Mission
- 03:01 Divorce and Rebuilding
- 05:16 Sister’s Business Wakeup
- 07:19 Work Life Balance Systems
- 10:43 Networking and Flexibility
- 12:23 Consistency Over Motivation
- 15:59 Money Psychology in Business
- 21:24 Client Confidence Transformation
- 22:13 Pricing Confidence
- 23:29 Cash Flow Clarity
- 25:49 Funding Needs Numbers
- 27:15 Profit Versus Cash
- 30:51 Money Mindset Shifts
- 33:56 Profit First Habits
- 36:29 Separate Accounts Rule
- 37:55 Mentors And Metrics
- 39:18 What To Monetise
