You’re the boss. You’re also the employee. You’re the chairman, and the owner. No matter who you are, it’s time to shift your mindset from “I’m just getting a paycheck,” to, “I run my life and my money like a business.” This simple change will help you fix all sorts of problems we all run into: feeling like we’re aren’t in control of our own lives, not being able to save, or constantly worrying about the future.
YOUR BOSS IS NOT YOUR BOSS
Let’s walk through what a normal day-to-day life on our employee side is like. You go to work, put in the required time, and cash the paycheck. Rinse and repeat.
You probably have a boss or a manager, who can fire you if you do not perform your duties. But that person isn’t your real boss.
Your actions have consequences, but it’s completely up to you if you want to go to work or not. The amount of effort you put in and the career path you’ve chosen is decided by the boss: you.
In the same way, you are the owner of your own life and the assets you have. Your car, house, furniture, Pokemon cards, and savings accounts are all part of your business.
As the chairman, you are also in charge of your overall strategy, the advice you give and receive, and the relationships you build.
RUNNING YOUR LIFE LIKE A BUSINESS
Good morning, Mr. or Mrs. Chairman. As you wake up, it’s a good idea to strategically plan your day. Making sure your employee goes to work seems like a good idea, so both they and your business can make money and improve your assets. Tell the boss.
Hey boss, make sure your employee is equipped with everything they need for a healthy and productive day. You should add the gym into their schedule, and some quick errands to knock off the list.
Have a great day, employee! Work hard, and get that paycheck (after your boss and chairman take out profits, of course).
THE PAY YOURSELF FIRST MENTALITY
Saving money sounds so boring. Paying yourself a profit is more exciting. It’s the same thing: you’re putting money away to invest in a happier, healthier future (increasing your assets).
Many people struggle with saving, even though there are some very cool apps out there like Qapital (get a free $20 if you sign up with our referral link), that rounds up every dollar you spend and automatically deposits it into a savings account. But the pay yourself first mentality works like this:
“At the beginning of every pay period, you (as the boss) take 10-20% of your (as the employee) paycheck as profit. You (as the employee) consider the rest of the money your official paycheck, and use that to budget for living and entertainment expenses. You (as the chairman) decide what to do with the money in your profit account every quarter.”
Sure, you can say, “That’s just saving,” but the fundamental shift in your thinking process from “I’m just saving money,” to, “I’m making money,” is huge.
MAKING MORE PROFIT
It can be efficient to set up automatic transfers each month, taking that 10-20% and depositing it without any hassle. But if you take an active management role, it can be very fun to log into your bank account and transfer as much as you possibly can from that pay period, including what you managed to leave over from last month.
Remember, that is pure profit for you! A vacation, a down payment, a new bike, paying off debt faster… you can do anything you want with that money (try and build up an emergency fund first, chairman…). Get excited about spending less each month, so you can transfer even more! Feel proud every time you send that profit over… that means your business, employees, and shareholders are all happy.