What inspired you to start a blog on financial management? How do you thinkPersonal Profitabilityis different from other blogs?
I started Personal Profitability way back in 2008 right after I left a job as a bank manager. I read a lot of personal finance blogs from people in debt learning and working to fix their finances. I realized I had never been in debt, had a finance degree, and had a unique perspective of sitting on the other side of the desk at a bank. Shortly after reading a few good books about money, I decided to throw my hat in the ring and start the blog that would become Personal Profitability.
How did you decide on your four pillars ofPersonal Profitability?
I’m a big fan of looking at your money like a business, and that’s what the four pillars help you do.Earn MoreandSpend Thoughtfullyare both activities you see on a company’s income statement or P&L (profit and loss).Grow Your Wealthhelps you prepare for the future and long-term needs, like a balance sheet. And the fourth pillar is why we do it:To Live a Better Life Through Mindful Personal Finance.
What’s the benefit of knowing your personal net worth?
Your net worth is a key metric in knowing your financial health. Your net worth is the total of your assets (things you have like bank accounts and investments) less things you owe (debt like credit cards, mortgages, and student loans).
In the short-term, your net worth can help you understand if you are able to pay the bills. In the long-term, it can help you reach your major financial goals like buying a home and retiring on your terms.
What the most enjoyable (and/or profitable) side-hustle you’ve come across?
One of my favorite side hustles is my old flash mob company, where I helped people run flash mobs for things like proposals, weddings, and corporate events. But most of the best side hustles draw on people’s existing interests and hobbies. Turning those into an income through teaching or selling a product/service can be both fun and lucrative!
What do you see coming for yourself and the blog in the upcoming years?
I’m working to shift the website into an evergreen resource helping people manage three popular scenarios: 1) paying off debt, 2) optimizing their money, 3) starting or growing a side hustle. I want to help people on those journeys reach their best potential.
What is the most interesting thing you’ve learned about personal finance since startingPersonal Profitability?
I’ve learned so much about how people interact with their money. I grew up in a family that talked openly about many money issues and my parents and grandparents encouraged me to learn more about managing my own money and finances from a young age. Most people have had a very different upbringing when it comes to managing finances.
Everyone has a unique relationship with money, different habits and struggles, and their own goals. That’s okay. The key is finding out how to succeed in your unique situation.
Got a quote about financial management? I’d love to hear it!
I’m a huge fan of Warren Buffett, and this one’s a classic: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”
If you enjoyed this interview, check out our interivew with Derek of Life and My Finances.