Your Money Personality and Your Business
In 1991 MC Hammer was gracing the stage with You Can’t Touch This and we minions of the 80s were dutifully wearing 10 yards of material Hammer called parachute pants (one of the many fashion tragedies that defined the 80s). As a result of being our music hero and defining new fashion inroads, MC Hammer was worth $33 million in 1991. But just 5 years later he filed a bankruptcy listing his debts at $13 million. That means in just 5 short years he spent the $33 million he earned, plus another $13 million – $46 million.
During that same time we children of the 80s were also following another fashion icon, Madonna. Another star of the same era, Madonna has never filed bankruptcy and is now worth an estimated $500 million. Interestingly, it’s told that even as a young star Madonna had each day’s earnings and expenses faxed to her wherever she was in the world. She was always very clear on her financial position.
So what’s the difference between Hammer and Madonna? They were both ridiculously well compensated in the same industry at the same time. Why did one sink and one swim?
My answer is Money Personality. We all have a particular way we view money and we bring that view to our business. Our business doesn’t stand in a vacuum and isn’t run by an emotionless money robot. We, as people, run our businesses and whatever views we have about money can be seen in how we do that.
Our Money Personality is made up of how we view:
- Earning money
- Monitoring money
- Spending money
…which has a lot to do with how we were raised and the experiences we’ve had with money.
I was raised in Orange County (land of the first Real Housewives franchise) and I’m a lawyer by training so I can be a bit insatiable when it comes to earning money. However, some professions, particularly the helping professions like teaching/mental health/nursing can feel funny about being paid much more than a living wage.
I monitor the money in my business closely because of the things I teach and the experiences I’ve had walking with many business owners through bankruptcy as their attorney. Some people are more devil-may-care and aren’t at all clear about what the financials are and what they tell you about your business.
I was raised by a “thrifty” mother so I can be a bit miserly and frankly a bit silly when it comes to spending money. I’ll sit in traffic to avoid paying a toll road fee on my way to a business dinner I plan to drop some serious cash on. Others may take the toll road, have dinner and buy a new car on the way home.
Are you starting to see how the way you view money will impact the way you run your business? It may be that you are very strong in one area, but you need the equivalent of a knee brace in the other. Just knowing and being aware of your Money Personality can substantially change your business for the better and more profitable. [TWEET THIS]
In the 4-Week Untangle Your Money Spaghetti Course, we talk more in depth about Money Personality and even include a short quiz to help you identify your Money Personality. We then take that Money Personality and show you specifically how to manage around it to build wealth in your business. Check it out here
We business owners can be our own best friends or our own worst enemies. Let’s buddy up!