Let’s talk honestly about money for a sec, okay?
It’s been hella’ weird becoming rich. Like, mind-fuck weird. I’ve come to see that becoming a “rich person” is an ongoing (and confusing) process, like becoming a mother or becoming a business owner. It’s a role that you have to step into and take ownership of. There’s the reality which is when you wake up and look at your bank account and you’re like, “I don’t know whose bank account this is but that person is rich.” And then there’s the moment when you realize that you need to start acting like somebody with money. You need to manage that money, you need to get advice on what to do with that money, you need to start using that money to make more money. It’s an entirely new skillset.
The funny thing about money is that when I didn’t have it, I didn’t think there was any point in spending time and energy managing what little I did have. Because what difference will that make? So by the time I got some money, I didn’t have the skills and knowledge to know what to do with it. I was stuck in my old money-could-vanish-any-moment mindset. I had $100K in my bank account and I was still behaving like I had $100 in my bank account.
1. I was afraid to invest it in myself
Looking back, I can see that I waited too long to invest in myself. After the first year of running my own business, it was clear that there was a lot of revenue potential there and instead of putting my money where my mouth was, I waited another few years before I was convinced enough in my own abilities to invest in my business. I also thought investing in myself ONLY applied to business support. I wouldn’t invest in things like a personal trainer, childcare, vacations, or a nice home office because I thought those expenses had no ROI. Now I understand that I AM my business. A clear head, a well-rested mind, a healthy body = more impact, more focus, more productivity. That’s ROI.
2. I thought there were “right” and “wrong” ways to spend money
When I was younger, I used to totally judge the ways that “rich people” spent their money. A private chef? $300 dinners? A service that plans your vacations? A yoga teacher that comes to your house? Who do you think you are?! I bought into the belief that rich people = entitled and lazy. Now I see that it’s just a simple equation of what my time is worth and what I could be doing with the time I save when I hire help. If I wasted four hours planning a vacation for my family, that would be a disservice to my team and my business. The only “right” way to spend my money is in a way that I get maximum benefit for it.
3. I was focused on cash, not wealth
This is one of the “rich people” lessons that’s taken me a while to learn. I grew up seeing cash go in…and go back out. I thought of money like sunshine: take advantage of those sunny days because who knows when it will rain! So when I started making more money, I wasn’t thinking about building wealth. Index funds, investing in real estate, taking advantage of compound interest, building passive streams of income…all of this was new to me! I had to educate myself on how to think like a rich person.
4. I didn’t talk about money
I didn’t ask questions. I didn’t talk to my friends about it beyond griping that I didn’t have any money. Money wasn’t a topic that I engaged in or felt like I had a right to engage in. Even after I started making more money, I didn’t know how to begin those conversations or who to have them with. That’s why it’s become so important to me that I talk honestly with the Hello Seven community about money, wealth and financial behavior. Earning money is just half the journey, managing it and taking full ownership of it is the other half.