Mike Michalowicz explains why he created The Money Habit after his 2008 financial collapse. Even after rebuilding his business with Profit First, his personal spending was out of control and draining everything. He built a companion system for household finances to run alongside his business method.
So this email came in and says, hey Mike, I've followed Profit First for a bit, albeit not perfectly. I totally get it. Was there a specific moment when you realized this wasn't just a business thing, that people needed this personally too? Yeah, but you know what's so funny? I realized it for myself. When I developed Profit First, it was 2008. I had this grand collapse and I needed to restart. I also noticed that even if I improve my business, if my home finances weren't fixed, they would leech off the business. In fact, that was a major reason I failed in 2008. I was spending way beyond what I was earning and didn't have control in either aspect. So I rolled out Profit First for my business, but I rolled out a version of it, The Money Habit, for my home. I ran the two in parallel, and they weren't perfect, but I started them both back then, and I learned how to improve the systems simultaneously by working them together.
