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Profit First and the Money Habit with Mike Michalowicz | | Chasing Curiosity and Sharing Boundless Insights from Ideas that Matter
Manage episode 501236876 series 3550946
Today we talk to Mike Michalowicz, bestselling author of Profit First, a revolutionary system implemented by over a million companies around the world to make profit a habit, not a year-end event. As Mike puts it, the entrepreneurial dream of working for yourself, working as much as you want, having complete freedom - it’s a myth for most people. Most business owners I know are stressed out, working their asses off and barely getting by. That was Mike too, so he decided to start writing about it. And that was 10 books ago.
So I’ve got a confession to make. This episode was a bit of a test, a challenge to myself. I was curious…can I make a conversation about finance interesting? What could we possibly say that hasn’t been said? Well, if you know Mike you know I had nothing to worry about. This was one of the most fun conversations I’ve ever had. Mike’s got a story for everything, including the financial rock bottom that inspired his new book, The Money Habit.
I’ve never been great with money, and I know I’ve left a lot of it on the table. As I near what most people call retirement, that’s starting to concern me more than it used to. But honestly, I feel like I’m just getting started. So sure, I could have used this conversation 20 years ago. But it’s also just what I need, right now.
If you’re struggling to make your business work for you, or maybe you want to hear about how someone writes 10 best selling books about something no one wants to talk about - this one’s for you.
Please enjoy, Mike Michalowicz.
Key Takeaways
Entrepreneurial Poverty is Real: Mike defines it as the painful gap between the outward appearance of success and the inner financial struggle many entrepreneurs face. His mission is to eradicate it.
Profit First Philosophy: Instead of treating profit as what’s left over, take it first. The formula changes from Revenue – Expenses = Profit to Revenue – Profit = Expenses. It’s a mindset—and a habit—that shifts everything.
Behavioral Triggers > Discipline: Mike shares how behavioral psychology plays a huge role in money management, and why creating systems (like putting sneakers on the toilet seat) work better than relying on willpower.
Multiple Bank Accounts = Clarity: Whether for your business or personal life, setting up separate bank accounts for different purposes helps remove emotion from financial decisions and creates instant visibility.
Your Business Shouldn’t Depend on You: The entrepreneur’s job isn’t to do the work, but to create jobs. If you're doing everything yourself, you’re stealing an opportunity from someone else—and setting yourself up for burnout.
Build Wealth at Home, Too: The Profit First system isn’t just for business. Mike adapted it for personal finances after realizing he was profitable in his company, but still living paycheck to paycheck at home.
The Power of Starting Small: Mike encourages listeners to take one simple step—open a new bank account and start moving money into it weekly for the thing that causes the most financial stress. That clarity creates momentum.
It’s Never Too Late: Whether you’re 25 or 55, building better financial habits now will absolutely change your future. As Mike says: “Profit is not an event. It’s a habit.”
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