Rethinking Money: How Running A Business Broke My Brain

_{[Read time: 3 minutes]}

I love money.

Ooof…how did that feel to read?

It's probably pretty off-putting. But I promise it felt worse to actually write. That said, there is a point to doing so.

The whole ‘money is a touchy subject to talk about’ is a real thing.

I love money because it helps me:

• build what I want

• get where I want

• live how I want

To be crystal clear, I’m not Gordon Gekko or Scrooge McDuck.

I realized if I wanted to achieve my business goals, I needed to stop walking on eggshells.

I needed to treat money differently.

Money is a tool.

It needs to be.

It wants to be.

We’re the ones that made it all emotional and psychological.

If you’ve been downplaying its importance, it’s not your fault. You’ve just been forced to conform to norms thrust upon you.

But if you’re in business, and you're not talking, using, or thinking about money differently, you’re letting a faulty mindset limit your progress.

Below, I‘m sharing 4 simple ways to reframe money as a tool so you can

• make better spending decisions

• create instant value

• minimize wasted time

• get better customers

#1 — If you want to make better spending decisions, frame the cost in “dollars” not “bucks.”

When you (or someone else) use slang for money, your brain downplays its financial impact.

It creates a “less expensive” bias towards the transaction.

Here’s an example:

• That ice cream costs 5 bucks

• That ice cream costs 5 dollars

Bucks feel less expensive than dollars. That unconscious bias will trigger you to buy the ice cream without thinking twice.

I realize the ice cream example is oversimplified, but this ‘bucks to dollars’ threshold also applies to higher-ticket items.

• That online course costs 1,000 bucks

• That online course costs 1,000 dollars

This is because it’s relative to what you have anchored in your brain as an expected cost or value.

This is why conventional money thoughts create poor habits.

(While my terminology is relevant for US dollars, the principle is the same if you substitute the terms)

#2 — If you want to create instant value, pay (or make people pay) for it.

Free stuff is cool, but it often collects dust or finds the trash can.

When you pay for something:

• You use ‘it’ more

• You value ‘it’ more

• You care about ‘it’ more

The reverse is also true — when you get paid for something, you treat the process of delivering value differently.

This is why everyone loses with free work.

#3 — If you want to minimize wasted time (and bad choices), accept that quitting is a viable strategy.

There is a reason your brain hates losing $100 is far more than it loves $100

This is called loss aversion.

It’s a psychological anchor that wants to fill a void. When this happens, you’re more inclined to make riskier moves to recoup a loss. This explains why:

• You wait to sell the stock at a loss…(hoping it goes back up)

• You play another hand at the casino…(hoping to get back to even)

• You invest more money into a failing project…(hoping it works out)

This is why winners tend to be quitters.

#4 — If you want better customers, help them save time, not make more money.

The customer who wants to make more money can't afford you.

The customer who wants more time can't wait to write the check.

Time is not money. It’s attention and energy.

This is why time is way more valuable.

Thank you for reading.

Happy 4th.

— Peter

P.S. If you’d benefit from more time (and you’re a founder, CEO, or owner of a small service-based business), then Flashlight is for you:

(speaking of money)

This is my favorite hypothetical scenario and brain teaser about money

Would you rather be given:

A: $1,000,000 today

B: A penny that doubled every day for 30 days

↓

💡If you choose an option, I’ll send you a super-short email with what I would do and why.