Well, last week we covered the first stage of financial literacy: Learning. This week, we’re going to talk about the next one: Living.
When your business finally “grows legs,” the first blind spots that show up are pride, greed and isolation. You add in the uncertainty of the last few weeks and this becomes a dangerous time. Especially if you run your business by yourself and you’re used to being broke.
Several men in our online mastermind groups shared temptations they experienced from their breakthroughs. One told me, “The first thing I could think was, ‘How can I go and spend this on some new toys?’” Others said they began to play their cards way closer to the chest. They got obsessed with hanging on to every dollar they could.
I’m not exaggerating when I tell you, we also counsel men who have made huge fortunes in business. You’d be amazed to find out what they did with all that money.
Success Should Increase Our Appetite … to SERVE
If you remember last week’s blog, money is best defined as a “certificate of value.” It rewards one person for helping and serving another. The person who receives the certificate can then present it to the market to acquire goods or services they need for themselves.
If you’ve ever heard the expression “add value,” maybe you’ve wondered to yourself what it means. I think the idea that money represents “value” helps clear this up. It simply means “providing knowledge, wisdom, goods or services that enhance the life of someone else.”
So if you’ve added value and received money, your appetite should grow … to add more value! To serve and obsess with the needs and desires of your fellow human beings. Most people get it wrong here - their appetites increase for money. The money will follow if you keep your focus on service to humanity.
In other words, if you’re entering the “Living” stage of legacy, there’s no time for greed or lust. Don’t start thinking about Ferraris, mansions or expensive vacations to Club Med. Now is the time to put the pedal to the metal on investing in ways to serve more people with the same level of quality and integrity.
Open Book Policy
The wisest counsel I never had when my businesses grew legs is finding a coach or mentor. Mastermind groups online are another valuable resource. You need more people you can trust knowing the ins and outs of your financial situation.
Because money’s an expression of value, it’s very easy to mishandle. Would you agree that sex and human affection are gifts from God that we mishandle? Well, money is like that too. God wants to bless us. But He also knows how easily our hearts go astray.
We encourage members to connect with each other and open the books. Let others see how you’re handling your success. Not only will it shed light on obviously bad things, like greed or dishonesty. But you might also save yourself some trouble. Another set of eyes always makes for better thinking about next steps.
Priorities
During the “Learning” stage, you want your financial priorities to sound something like this:
- Acquiring Enough
- Giving Appropriately
- Saving Some
- Investing Much
- Spending Little
For the “Living” stage, we’re going to shift that around:
- Acquiring Plenty
- Giving More
- Saving Steadily
- Investing Habitually
- Spending Gradually
Once your business generates steady income, you need to figure out how to multiply it. By serving some happy customers, it’s a good bet more will follow. But you may not be ready or equipped for that.
You might need more resources to put yourself in the right position. Numerically, you need more sources of revenue (Acquiring Plenty). But strategically, you need more resources and tools. You might need to hire staff, purchase equipment, or it could simply be education and coaching. Either way, these involve Investing Habitually and Spending Gradually.
This is also the stage where you’ll be tested on your willingness to Give More. In the Learning stage, it’s more understandable to conserve resources. But once you achieve some momentum, the laws of the universe kick in.
Remember not to “give in order to get.” We want to practice selfless altruism in our giving. But you can take this to the bank - giving of your time, talent and treasure is like showering the world in value. The spiritual world is obliged to reward someone who gives value. The reward is almost always more value to the giver.
On the personal side of your business income, it’s also time to start Saving Steadily. In our master mind group, we teach from the book “Profit First” by Mike Michalowicz. A key component of putting profit first, obviously, is having a “profit” account. This is like a “savings account” for business. It’s separate from your owner’s compensation, like a “nest egg.”
I should also mention that the practice of filling a personal savings account puts a smile on the faces of many wives. The feedback we get from our members’ wives often mentions increased financial security and well-being.
The Writing’s On the Wall
My friend Rocky Lalvani, who is in our mastermind online, got certified with Profit First to provide business coaching services. He says the number one symptom of an entrepreneur who manages money poorly is the lack of a paper trail.
“I was raised on spreadsheets,” he told me. “When I went into business, I was shocked how many owners have no written plan for what to do with their money.”
I want to challenge you. Everything we’ve talked about in this blog is useless, if you’re not prepared to write it down. Not just once, either. This is a lifestyle change, like fitness or marriage. There’s no in-between. If you’re going to do this, shut the door on your old ways, lock it, and throw away the key.
The good news is there’s time between now and October, when we hold our next live event. You can apply and join our mastermind, and we can work you into this shared season of financial growth. If you really want to transform the energy you’ve created, the best place to do it is in a community marked by transparency, authenticity and vulnerability.
