Mike Michalowicz's Blog

How well do you sleep when you’re worried about money? If you’re lying awake wondering how you’ll cover the mortgage, if you’ll have enough for taxes, or how you’ll ever dig out of debt, you’re not resting; you’re grinding your gears.

And when you wake up already drained, what happens? Your decision-making gets fuzzy. Your patience wears thin. Creativity stalls. Suddenly, the stress you felt in your personal life bleeds into every business decision you make.

Financial stress isn’t just a “personal problem.” For a business owner, it’s a productivity killer. When your mind is cluttered with money worries, you’re not giving your business 100%.

But here’s the good news: when you get control of your personal finances, you get clarity, energy, and focus back. And that shows up in every corner of your business.

Practical money habits that change everything

The best part? You don’t need to overhaul your entire financial life overnight. In fact, the smaller the step, the better. Here are a few key principles from The Money Habit you can start applying today:

 Automate your savings – Set up an automatic transfer that moves a small percentage of your income into savings or debt reduction each month. Even if it’s just 1%, the automation means you don’t have to think about it or rely on willpower. It happens in the background, and progress builds quietly over time. Track what actually matters – Forget tracking every single penny. It’s overwhelming and unsustainable. Instead, focus on the few categories that make the biggest impact: debt, essentials, and discretionary spending. When you can see where your money is really going, you can make better decisions without the mental fog.Build habits, not perfection – The goal isn’t to get everything “right.” The goal is to build small, consistent habits. One step leads to another, momentum builds, and confidence grows. Over time, that momentum is what changes your financial reality.

These are simple shifts, but they add up. And when your financial life feels steady, you show up to your business with more energy, less stress, and a clear head.

What this means for business owners – you

Here’s the connection most entrepreneurs miss: the habits you build in your personal finances mirror the habits you need to grow your business.

Clarity drives confidence. Just like tracking your personal money gives you control, setting clear business goals gives your company direction. When you know where you’re headed, you can make decisions faster and with less second-guessing.Small steps create big wins. Just like a little extra toward debt speeds up payoff, consistent small improvements in your business, like refining your client experience or tightening processes, compound into major results.Reduce cognitive load. Automation isn’t just for your savings account. Automate repeatable tasks in your business, too. Free your brain to focus on strategy and creative problem-solving instead of the daily grind.Invest in yourself first. When you prioritize your financial health, you’re not being selfish; you’re ensuring you have the clarity and strength to lead. And when you lead well, your team and your business thrive.

The parallels are clear: when you win at home, you win at work.

Taking Action

If you’ve been running your business under the weight of financial stress, it’s time to stop. You don’t need another sleepless night. You don’t need to burn out trying to power through. You need clarity, and you can get it.

Here’s a simple plan to start today:

Pick one habit like automating savings, tracking essentials, or cutting one unnecessary expense and commit to it for the next 30 days.Share your goal with someone you trust. Accountability makes all the difference.Notice the shift in your energy and focus. When you see the connection between financial clarity and better leadership, you’ll be hooked.

And if you want the full playbook, The Money Habit is where I lay it all out. It’s not complicated. It’s not overwhelming. It’s practical, doable, and designed to work even when life gets messy (because it will).

Final thought

Financial clarity isn’t just about your bank account; it is about your business, your leadership, and your peace of mind. When you reduce financial stress, you gain back the focus and energy you need to grow your business and enjoy the process.

So, let me challenge you: don’t wait until you “have time” to fix your finances. Start now. Start small. Build the habit. Because the stronger you are, the stronger your business will be.

– Mike 

The post Financial Clarity for Business Owners: Boost Focus, Energy & Growth with The Money Habit appeared first on Mike Michalowicz.

Whether you’ve just moved into your first home or have been making payments for years, the idea of shaving years off your mortgage can feel overwhelming. But here’s the truth: you don’t need complicated strategies or risky investments to achieve it. You just need a simple, consistent habit.

The Insight: Overfund your mortgage

Here’s the first piece of wisdom: overfunding your mortgage with a consistent percentage directed toward the principal can dramatically accelerate your payoff timeline.

Most homeowners focus solely on making their monthly payment. They dutifully write the check, cross their fingers, and wait for the balance to slowly tick down. But what if you could shave years and tens of thousands of dollars off that balance without feeling the pinch?

The key is consistency. Even a small, regular increase in your principal payment compounds over time. Think of it like giving your mortgage a “boost” each month, steadily pushing it toward zero. It’s simple math, but the results are extraordinary when practiced habitually.

The Perspective: Peace of mind is the greatest return

Now, I know what some of you are thinking: “Mike, the math says I could make more money by investing that extra cash elsewhere.” And you’re right. Investments can yield impressive returns. But here’s the perspective I want to offer: the return on a debt-free home is peace of mind.

Imagine the relief of living mortgage-free. No more monthly minimums, no more interest eating away at your hard-earned money, no more feeling trapped by a debt that hangs over your head. That freedom is worth more than any stock market gain. It’s security. It’s mental clarity. It’s the ability to redirect your energy and resources toward the life you actually want to live.

While investing is smart, securing your home and removing that financial anchor often provides the largest psychological and practical return of all. And the best part? It’s within reach if you take action consistently.

The Action: Start with 10%

Here’s the actionable step you can take today: start by paying 10% more than your required mortgage payment each month, directing that extra amount toward the principal.

Can you handle more? Absolutely. Try 20%, then 30%. The more you can safely allocate without straining your monthly budget, the faster you’ll reach freedom.
Can you only manage 10%? Perfect—that’s your baseline. Consistency matters more than the size of the extra payment.

By making this small but steady habit a part of your financial routine, you’ll watch your payoff period shrink significantly. That’s not theory—that’s math in action. Every extra dollar paid toward your principal reduces your interest and shortens the life of your loan.

Here’s a simple mental model to keep you motivated: treat your mortgage like a snowball rolling downhill. Each extra payment adds weight, and over time, it grows faster and more powerful. Before you know it, your mortgage is gone, leaving you free to focus on other financial goals.

Why this habit works

Consistency is the unsung hero of financial freedom. You don’t need to time the market, invest in high-risk ventures, or chase complex strategies. You just need to commit to one habit and stick to it.

By overfunding your mortgage monthly:

You reduce total interest paid – The longer your loan drags on, the more interest accrues. Every extra payment cuts that cost.
You shorten the timeline – Even modest increases can shave years off a 30-year mortgage.
You gain control – Watching your balance shrink gives you tangible proof that your financial decisions are working.

This is the beauty of the Money Habit approach: small, deliberate actions compounded over time lead to extraordinary results.

Make it social

One of the most powerful ways to reinforce this habit is by sharing it. Tell a friend. Encourage them to subscribe to The Money Habit Weekly for free. Accountability and shared goals can help you stick to the plan—and it could transform someone else’s financial future, too.

Your assignment for the week

So here’s your one simple task: pick a percentage you can comfortably add to your monthly mortgage payment. Start at 10%, and be consistent. Track your progress. Notice how quickly that snowball starts rolling.

And remember: this isn’t about deprivation or stress. It’s about creating financial independence and the peace of mind that comes with it. You’re investing in your future, in a home that’s fully yours, and in the freedom to live life on your terms.

Closing thought

Paying off your mortgage early isn’t just a financial strategy; it’s a mindset. It’s proof that by taking deliberate, consistent steps, you can regain control over your finances and your life.

I’m wishing you a lifetime of financial independence. Start small, stay consistent, and watch your freedom grow.

– Mike

Grab your preordered copy of The Money Habit here or with your favorite bookseller.

 

The post Your Mortgage – The Trick to Paying it Off Early appeared first on Mike Michalowicz.

When I first started out, one of the biggest challenges I faced wasn’t just learning the ropes of entrepreneurship, but staying integral to who I am. I wanted to be human in every interaction, truly understand the experiences of my customers, and respond with empathy. But at the same time, I felt the constant pressure to do everything myself. Emails, scheduling, client questions, content creation…it was endless. I worried that leaning on systems or technology would somehow make me less “real,” less connected.

It took a mindset shift to realize something important: being human doesn’t mean doing all the work yourself. Being human means knowing where your unique value lies and delegating the rest, even to AI, so you can focus on what really matters. When I embraced that idea, I discovered a way to stay connected to my customers, honor their human experiences, and still operate efficiently.

I’ve always believed that the best way to grow personally and professionally is through action, especially experiments. Real growth comes when we try something new, test it out, see what works, and adjust along the way.

That’s how every one of my books has been written: not by me sitting in an ivory tower with “perfect ideas,” but by testing concepts in the real world. Sometimes those experiments fail (and fail big). Other times, they work better than I could have imagined. Either way, the experiments always point to the truth.

Right now, I’m running an experiment that has me both excited and a little nervous. It involves AI, my speaking page, and maybe you.

Leadscraping – The speaking page test

Here’s what we’re doing: we’ve set up my speaking page to run an AI-driven test. When someone visits, the system tracks engagement so that we can potentially reach out to them afterward.

I want to be very clear: this isn’t some shady “Big Brother” thing. No hidden data scraping, no weird invasions of privacy. It’s simply an experiment to see if there’s a smarter, more effective way to connect with people who might be interested in having me speak at their event.

Normally, people browse a site and then vanish. Poof. Maybe they were curious, maybe they were serious, but either way, we never hear from them again. That’s a lost opportunity for both of us.

So the experiment is this: what if AI could help bridge that gap? What if we could follow up in a thoughtful, human way with people who’ve shown interest?

What do you think?

This is where I need your perspective.

How do you feel about this? If you were in my shoes, would you try it? Would you feel comfortable if you were on the visitor’s side of things (email [email protected] and let me know!)?

I’ve always seen business as a two-way street. I learn just as much from you as I hope you learn from me. So I genuinely want your take on this. Transparency is everything – and so is dialogue.

Why AI, and why now?

The bigger question might be: why AI at all?

Here’s my answer: because entrepreneurs need answers fast. When you’re in the weeds of your business, you don’t have time to wait for the next coaching call, the next event, or the next book release. Sometimes you need a tool that can give you immediate guidance in the moment.

That’s what excites me about AI. Not the hype, not the buzzwords, but the real possibility of creating something that can serve you right when you need it.

So, I started asking myself: what if AI could extend the reach of what I do? What if there was a way for you to get my methods, my systems, and my frameworks not just when I’m available, but whenever you need them?

That’s when we created something new.

Introducing AI + The Guy

This isn’t just another “AI tool.” It’s me and my digital brain working together to help you grow your business without burning yourself out.

Here’s how it works:

AI: You get access to my virtual brain 24/7. It’s trained on everything I’ve ever written, said, or scribbled on a napkin. That means you can ask it anything about Profit First, The Pumpkin Plan, Clockwork, or any of my systems, and get actionable answers right away. No waiting. No office hours.The Guy: That’s me. The real me. Every month, I show up live. We’ll dig into strategies, answer questions, and have real conversations. No fluff. No filler. Just the honest truth and practical coaching. It’s the best of both worlds: immediate access when you need it, plus live connection when we come together.

Where growth and experiment collide

AI + The Guy is, at its heart, another experiment. We don’t have all the answers yet (no pun intended). But I believe this is where business growth is heading: faster breakthroughs, smarter systems, and more personal connections.

Let’s try this together

Here’s what I hope you take away: experiments are how we grow. I’m running this AI experiment because I want to serve you better, faster, and smarter. And I want to do it in a way that’s transparent, human, and collaborative.

So let’s try this together. Share your thoughts on the speaking page test. Tell me how you feel about AI in business.

Who knows? This just might be the experiment that changes everything.

-Mike

PS – And here’s the kicker: right now, you can jump in and try it for just $5 for your first month. That’s it. For less than the cost of a fancy coffee, you can have my digital brain in your pocket—and me live, every month.  Join AI + The Guy

 

The post Why I’m Running an AI Experiment – and Staying Human appeared first on Mike Michalowicz.

I’ve always believed that the best way to grow personally and professionally is through experiments. Real growth comes when we try something new, test it out, see what works, and adjust along the way.

That’s how every one of my books has been written: not by me sitting in an ivory tower with “perfect ideas,” but by testing concepts in the real world. Sometimes those experiments fail (and fail big). Other times, they work better than I could have imagined. Either way, the experiments always point to the truth.

Right now, I’m running an experiment that has me both excited and a little nervous. It involves AI, my speaking page, and maybe you.

Leadscraping – The speaking page test

Here’s what we’re doing: we’ve set up my speaking page to run an AI-driven test. When someone visits, the system tracks engagement so that we can potentially reach out to them afterward.

I want to be very clear, this isn’t some shady “Big Brother” thing. No hidden data scraping, no weird invasions of privacy. It’s simply an experiment to see if there’s a smarter, more effective way to connect with people who might be interested in having me speak at their event.

Normally, people browse a site and then vanish. Poof. Maybe they were curious, maybe they were serious, but either way, we never hear from them again. That’s a lost opportunity for both of us.

So the experiment is this: what if AI could help bridge that gap? What if we could follow up in a thoughtful, human way with people who’ve shown interest?

What are your thoughts?

This is where I need your perspective.

How do you feel about this? If you were in my shoes, would you try it? Would you feel comfortable if you were on the visitor’s side of things?

I’ve always seen business as a two-way street. I learn just as much from you as I hope you learn from me. So I genuinely want your take on this. Transparency is everything—and so is dialogue.

Why AI, and why now?

The bigger question might be: why AI at all?

Here’s my answer: because entrepreneurs need answers fast. When you’re in the weeds of your business, you don’t have time to wait for the next coaching call, the next event, or the next book release. Sometimes you need a tool that can give you immediate guidance in the moment.

That’s what excites me about AI. Not the hype, not the buzzwords, but the real possibility of creating something that can serve you right when you need it.

So, I started asking myself: what if AI could extend the reach of what I do? What if there was a way for you to get my methods, my systems, and my frameworks, not just when I’m available, but whenever you need them?

That’s when we created something new.

Introducing AI + The Guy

This isn’t just another “AI tool.” It’s me and my digital brain working together to help you grow your business without burning yourself out.

Here’s how it works:

AI: You get access to my virtual brain 24/7. It’s trained on everything I’ve ever written, said, or scribbled on a napkin. That means you can ask it anything about Profit First, The Pumpkin Plan, Clockwork, or any of my systems, and get actionable answers right away. No waiting. No office hours. The Guy: That’s me. The real me. Every month, I show up live. We’ll dig into strategies, answer questions, and have real conversations. No fluff. No filler. Just the honest truth and practical coaching.

It’s the best of both worlds: immediate access when you need it, plus live connection when we come together.

Where growth and experiment collide

AI + The Guy is, at its heart, another experiment. We don’t have all the answers yet (no pun intended). But I believe this is where business growth is heading: faster breakthroughs, smarter systems, and more personal connections.

Let’s try this together

Here’s what I hope you take away: experiments are how we grow. I’m running this AI experiment because I want to serve you better, faster, and smarter. And I want to do it in a way that’s transparent, human, and collaborative.

So let’s try this together. Share your thoughts on the speaking page test. Tell me how you feel about AI in business. 

Who knows? This just might be the experiment that changes everything.

You rock!

-Mike

PS – And here’s the kicker: right now, you can jump in and try it for just $5 for your first month. That’s it. For less than the cost of a fancy coffee, you can have my digital brain in your pocket—and me live, every month.  Join AI + The Guy

 

The post Why I’m Running an AI Experiment (and What it Means for You) appeared first on Mike Michalowicz.

The Insight: Name it, claim it

Money without a mission is money without meaning. When all your income sits in a single bank account, it feels like a giant, mysterious stew—every dollar swimming around with no clear role. And just like a stew, it’s impossible to tell which chunk is meant for what.

That’s why one of the simplest, most powerful money habits is also one of the easiest to ignore: give your money jobs by separating it into multiple, uniquely named bank accounts.

This isn’t just bookkeeping. It’s brain hacking. When you label money, you give it purpose. You stop confusing survival expenses with indulgences. You stop mixing your financial goals with your daily gas and groceries. And you stop that slippery slope of “I’ll just dip in here once” because your accounts themselves call you out.

The Perspective: One pot blurs priorities

Here’s the trap most people fall into: they set up one checking account and let everything pile in. Paychecks, side hustle money, refunds, the occasional Venmo repayment, it all dumps into the same pot. Then bills, groceries, dinners out, and vacations all come out of that same pot too.

It feels simple. One account, one debit card, one balance to check. But that so-called “simplicity” is a mirage.

Instead of giving you clarity, one big pot blurs your priorities. You see a lump sum and think, “I’ve got plenty left this month.” But what you really have is a grocery budget colliding with your rent money, wrestling with the funds you swore you’d save for a new car, duking it out with the dream trip you’ve been planning for years.

The result? Stress. Overspending. Guilt. And the sneaky erosion of your financial goals.

On the other hand, multiple accounts act like little spotlights. Each one shines on what actually matters. You can see, in real time, what’s available for your needs, your wants, your dreams, and your emergencies.

Suddenly, you’re not wondering if you “should” spend on takeout this weekend—you just look at your “Wants” account. If it’s funded, go for it guilt-free. If it’s empty, you know the answer (and you know why).

That’s not restriction. That’s clarity.

The Action: Open Your Four Core Accounts

Let’s make this practical. Here’s your starting lineup:

Needs account
This is the foundation. Rent or mortgage, groceries, gas, insurance—anything you literally need to function goes here. This account should be rock solid, the first one you fund every single week.

Wants account
Fun money, guilt-free. Eating out, subscriptions, hobbies, little splurges. This is where joy lives. By naming it, you protect yourself from overspending and from self-denial.

Dreams account
Big goals deserve their own spotlight. That vacation, that home renovation, that once-in-a-lifetime experience it belongs here. Every dollar you add builds anticipation and momentum.

Emergencies account
Life throws curveballs. Cars break down. Kids get sick. Roofs leak. Instead of scrambling, you’ll have a stash ready to go. This account is your safety net and your stress reliever.

How to Get Started

Open the accounts today. Yes, it takes a few minutes online or a quick trip to your bank. Do it now before the momentum fades.

Fund them weekly. Set up automatic transfers the day you get paid. Even if you’re only putting $10 in each, start building the habit.

Adjust as you grow. Over time, your percentages will shift. You may add more accounts (like “Kids’ College” or “Charitable Giving”). Start small, expand when you’re ready.

The beauty of this system isn’t just the math—it’s the mindset shift. When you assign every dollar to a job, you’re no longer guessing. You’re directing. You’re leading. And your money starts working for you, not against you.

Why This Works

Behavioral finance research shows that labeling money changes how we use it. It’s called “mental accounting.” The same $20 bill feels different when it’s “gas money” than when it’s “vacation money.” That little psychological trick is the foundation of your financial independence.

This isn’t about cutting lattes or obsessing over spreadsheets. It’s about aligning your money with your values, so you can enjoy life and plan for the future without the constant anxiety of “Am I doing this right?”

With multiple accounts, the answer is right there in black and white.

Your Turn

Here’s your one action for the week: open four accounts and name them Needs, Wants, Dreams, and Emergencies. Start funneling your money into them now.

By this time next week, you’ll already feel a shift. By this time next month, you’ll feel calmer and more in control. By this time next year, you’ll be thanking yourself for the financial freedom you created with one simple habit.

Please share this with a friend and encourage them to subscribe (for free).

I’m wishing you a lifetime of financial independence.
See you next week with another 1-1-1!

-Mike

Want to hop onto the path of financial freedom? Get started now! You can get more intel weekly with The Money Habit newsletter. Just sign up here.

No spam – just guidance!

And…

You can preorder The Money Habit here.

The post The Money Habit Weekly | More Money, More Bank Accounts appeared first on Mike Michalowicz.

Can you relate?

One of the biggest mistakes I made when I started my business was spending the day on the soul-sucking, repetitive stuff.  I was invoicing clients, scheduling social media posts, answering the same questions, and sending emails for hours before I could dive into my big, audacious goals..

That’s not the work of a visionary. That’s the work of a machine. 

And that machine might just be you.

You became an entrepreneur to have an impact. To implement the creative, strategic ideas that are unique to you. When you’re stuck doing what feels like robot work, you’re not just wasting time; you’re blocking your genius. You’re using your unique human elements to do a job a machine could handle. It’s like asking a superhero to mop the floor. It’s a waste of your most valuable resource: You. (And let’s face it, you could have a lot more time freedom in the long run if you could offload some of those blah tasks.)

What’s the secret to getting more time?

Thanks to AI, you don’t have to do what can be automated anymore. AI is your new employee. It works 24/7, doesn’t need a salary, and it’s happy to do all the crap you hate. This isn’t about replacing you. It’s about liberating you so you can do the work that actually matters.

Your assignment this week: 

Let’s make a deal. Right now, I want you to identify just one single repetitive task you do daily or weekly. Just one. Don’t overthink it. Is it creating content calendars? Drafting client proposals? Managing customer support tickets? Whatever it is, that task is your target.

Now, I want you to ask AI to fix it. Just start the conversation. This simple act of delegating one tiny task to a machine can be the domino that frees up hours, days, even weeks of your life.

Do This: Pick one repetitive task. Then, ask AI to fix it.

Not That: Don’t keep doing the repetitive stuff that’s blocking you from your best stuff.

Go AI: Your personal automation consultant

To get started, I’ve created a prompt that you can copy and paste directly into your favorite AI tool, like ChatGPT or Gemini. This isn’t just a generic command; it’s a way to start a guided conversation that will help you uncover automation opportunities and then actually implement them.

Copy and paste this prompt:

As your personal business automation consultant, I will ask you one question at a time to uncover opportunities for automation in your business. Based on your answers, I will then guide you through the process of automating these tasks or, where possible, automate them for you. To begin, please tell me about your business. What industry are you in? What is your primary product or service? And what is the biggest pain point you currently face?

The bigger picture: Your blueprint for freedom

This isn’t just about a new tech tool. It’s about a new mindset. It’s about designing a business that supports your genius instead of burying it under a mountain of mundane tasks. It’s a core concept I’ve been shouting from the rooftops for years.

In The Pumpkin Plan, I hammered on the importance of saying no to the low-value stuff. In Chapter 6, pages 90-95, you’ll learn how to identify the “weeds”; the clients and tasks that suck your time and energy, and get rid of them. Automating is the ultimate “no” to that kind of work.

Clockwork, is all about making your business run itself. The key is identifying your Queen Bee Role: the one vital function that makes your business fly. In Chapter 11, pages 150-155, I explain how you can document and automate everything else so you can protect that vital function.

And if you don’t know where to start, Fix This Next is your roadmap. The whole book is a framework for identifying the single most important thing to fix in your business right now. In Chapter 8, pages 120-125, we talk about moving from stability to true efficiency. Automation is the engine that drives that shift.

The Final Thought: Be wise, overlook the mundane

Look, you’re already a superhero. Don’t waste your powers mopping the floor. As William James said, “The art of being wise is the art of knowing what to overlook.” It’s time to overlook the junk that’s holding you back.

Now, go get out there and do your best stuff. The world needs it.

-Mike

Links to the books:

The Money Habit: https://bookshop.org/a/4474/9781774586433

Get Different: https://bookshop.org/a/4474/9780593330630

Fix This Next: https://bookshop.org/a/4474/9780593084410

Profit First: https://bookshop.org/a/4474/9780735214149

Pumpkin Plan: https://bookshop.org/a/4474/9781591844884

All In: https://bookshop.org/a/4474/9780593544501

Clockwork: https://bookshop.org/a/4474/9780593538173

Money Bunnies: https://bookshop.org/a/4474/9780578929989

The post You’re Not a Robot – But AI Is appeared first on Mike Michalowicz.

When I was starting out as an entrepreneur, I thought success came from laboring longer than everyone else. Nights, weekends, holidays…if I wasn’t grinding, I felt guilty. And yet, there were plenty of times when I would put in hours of work and have nothing truly transformative to show for it.

Here’s the truth I learned the hard way: big effort rarely delivers equally big breakthroughs.

Sometimes, brilliance comes from brainstorms that are shorter than a coffee break. 

I can point to specific ideas, marketing strategies, product pivots, even book titles, that changed everything for me. And almost all of them came from short bursts of focused, playful brainstorming. I didn’t need a weeklong retreat or a 10-hour planning session. I just needed a few minutes of open space where I gave myself permission to try out “bad” ideas until a good one popped up.

Shameless plug alert:  That’s exactly the premise of my new TV show, 4 Minute Money Maker. Because 4 minutes can truly change your business.

 

Truth Bomb: Hard work ≠ success

We’ve been sold the lie that more work = more success. It doesn’t. The truth? More work usually just means more exhaustion. Success comes from the right spark at the right time. And that spark shows up when you step back, not when you chain yourself to the desk. Four minutes of thinking beats forty hours of grinding, every time.

 

The Spark: Wild ideas + AI

The best ideas often start as the “dumbest” ones,  so don’t censor yourself. Let the wild, impractical, even laughable ideas flow. That’s the raw material for true innovation. Write it all down.

 

And if you work alone, let AI be your brainstorming buddy. It is like jet fuel for the process. Prompt it for five ridiculous marketing ideas. You may toss them all, but one could spark something brilliant.

The combination of grace (permission to explore), space (a time box of 4 minutes), and tools (like AI) can give you more leverage than any amount of endless labor.

 

The Real Work: 4 minutes to breakthrough

It’s your moment. Find 4 minutes to try this simple exercise this week:

Set a timer for 4 minutes. No more, no less.Pick one challenge in your business. It could be “How do I attract more customers?” or “How do I make my next launch stand out?”Write down every idea that comes to mind. No judgment. No editing. Just let them pour out, even the silly ones.Circle one idea that excites you. Don’t overthink it. Chase the one that makes you grin or raises your heartbeat. That’s your spark.

That’s it. Four minutes. But you’ll be shocked at what can come out of such a short burst.

 

Bottom Line: Rethink your labor

This Labor Day your job is to tap into a different kind of labor, the kind that comes from quick, courageous bursts of creativity. You risk nothing in 4 minutes…except maybe stumbling into your next breakthrough.

You’ve got this. I mean it.

—Mike

 

PS My new TV show, 4 Minute Money Maker, debuts September 2nd. Every week, I’ll give struggling businesses four minutes of money-making ideas. Want to see how much you can do with just a little space, grace, and creativity? Tune in. And while you wait, grab a copy of Get Different to learn how to make marketing ideas that truly stand out.

 

The post The 4-Minute Shift That Will Transform Your Business appeared first on Mike Michalowicz.

I want to tell you about the worst moment of my entrepreneurial life. No, it wasn’t a business failing. It was sitting in my car, staring at a stack of unopened envelopes in the passenger seat. There were bills from the credit card company, letters from the bank, and a few from friends I owed money to. The stack felt impossibly heavy. I had built a successful business, but I had made some serious mistakes along the way, and the debt had quietly ballooned to over $300,000.

I felt a crippling sense of shame. I had failed. And because of that shame, I did the worst possible thing: I ignored it. I hid the bills. I stopped answering my phone. I was completely paralyzed by the problem, and every day, that mountain of debt grew a little taller.

This is what I’ve come to understand: debt isn’t just a financial problem. It’s an emotional one. And you can’t solve it with logic alone. You have to address the emotions first. My progress, and my eventual freedom, came not from a single heroic act, but from a series of consistent, small, almost laughably simple steps.

The Insight: The paralysis of shame and the power of incremental steps

When you’re deep in debt, the shame can feel like a weight holding you down. You feel like a failure, and that feeling tells you to hide. You avoid phone calls, you delete emails, and you throw bills in a drawer. The logical part of your brain knows this is a bad idea, but the emotional part is running the show. It says, “Don’t look at it, and it can’t hurt you.”

But: what you don’t look at will absolutely hurt you.

The key to escaping this paralysis is to ignore the massive mountain of debt for a moment and focus on a single pebble. Just one. Don’t worry about the $300,000 I owed. My first step wasn’t to tackle the biggest loan. It was to open just one of those envelopes. That’s it. That one tiny act of bravery gave me a flicker of momentum. And that flicker turned into a flame.

Progress, I learned, isn’t about making one giant leap. It’s about building momentum through a series of consistent, incremental steps. Like an athlete training for a marathon, you don’t start with 26.2 miles; you start with a single jog around the block. That jog builds confidence, which builds consistency, which eventually gets you to the finish line.

The Perspective: How to gamify debt repayment

The emotional paralysis I felt was real, but so was the high-interest debt that was keeping me trapped. To break free, I had to combine emotion and logic.

Here’s the powerful perspective that changed my life: every single debt payment, no matter how small, gives you a dopamine boost. That little hit of “I did it!” is a powerful motivator. You’ve got to use that feeling. It’s like a game where you get a point for every debt you eliminate. The problem is that if you only focus on paying off the smallest debt (the “snowball” method), you might be ignoring a high-interest debt that is essentially a financial anchor, pulling you down.

That’s why a logical, well-structured approach is so critical. High-interest debt is not your friend. It’s the kind of debt that can keep you in a financial prison for life. You have to take its cost and consequences seriously. You need a system that not only gets you motivated but also gets you out of debt as quickly and efficiently as possible.

The Action: The two-part strategy that will set you free

My debt-eradication plan was a simple, two-step process that took years, but it worked.

Part 1: The quick wins

Before I did anything else, I paid off a few small debts. This wasn’t a logical move; it was an emotional one. I had a few small, annoying bills – a few hundred dollars here and there. I paid them off immediately. It felt incredible. I took those little “wins,” and they gave me the momentum and confidence I needed to face the bigger challenges. That’s the first step: get a few quick wins to prove to yourself that you can do this.

Part 2: The ranking system.

Once I had some momentum, I made a list of all my remaining debts. I didn’t care about the total number; I was focused on the list itself. Then I ranked them using two criteria:

Cost: What was the interest rate on this debt? This was the most important financial factor. The higher the rate, the more it was costing me every single day.Consequence: What was the potential consequence of not paying this debt? This was the human factor. I had a debt to a very dear friend. While the interest rate was low, the potential consequence of damaging that friendship was devastating. That made it a high-consequence debt.

I put all my debts in order, prioritizing the high-interest ones and the high-consequence ones. The debt to my friend went to the top of the list, right next to a high-interest credit card. I called my friend and had a tough, honest conversation, telling him I was creating a plan to pay him back. This act of communication was more important than the payment itself. I then aggressively tackled the high-interest credit card, making it my primary focus.

Over the next decade, I followed this two-part strategy. It wasn’t fast. It wasn’t easy. But it worked. I paid off that $300,000, and I’ve been debt-free ever since. Like building wealth, getting out of debt is a process, not a moment.

And, it’s a habit.

The first step is to face the truth. 

The second is to get a quick win. 

The third is to create a plan. 

You can do this. 

The feeling of freedom on the other side is worth every single step.

You’ve got this. I mean it. 

-Mike

PS – The Money Habit hits the shelves in January. You can preorder this roadmap to financial freedom here. 

In the meantime, there’s The Money Habit email, where I send shorter versions of blogs like this and strategies to support you. You can sign up here. I promise, NO spam!

 

The post The Money Habit Weekly: How I Eliminated $300K in Debt (and What You Can Learn) appeared first on Mike Michalowicz.

I’m going to share a financial “secret” that was a hard-earned lesson for me, and I’ll bet it’s something you’ve never thought about either.

When I started my first business, I felt like a financial rock star just because I had a savings account. Every time I made a deposit, I’d see that number get bigger and feel a little bit safer. It was my rainy-day fund, my emergency money, my security blanket. I was doing the “right” thing, just like my parents told me to.

But I was wrong. I was not a financial rock star. I was a well-intentioned, hard-working person who was playing a game I couldn’t win. I was making deposits, but I was actually losing money.

The Insight: The silent money eater

There’s a sneaky little monster out there called inflation. You can’t see it, but it’s always hungry. It’s that invisible force that makes a gallon of gas or a carton of eggs cost more every single year.

While you’re feeling good about that number in your savings account, inflation is quietly munching away at your money’s buying power. A traditional savings account gives you a pathetic interest rate, like maybe 0.1% or 0.2%. I mean, seriously, what’s that? It’s basically an IOU from the bank saying, “Thanks for the free loan.”

Meanwhile, inflation, over time, chews up 2% or 3% of your money’s value every single year. You’re earning less than you’re losing.

Think of it like this: If you put $1,000 in a traditional savings account today, in ten years, that money might still be “worth” $1,000 on paper. But it’ll only be able to buy what $800 or $750 could buy today. The number is the same, but its power is gone. You’re not saving; you’re just slowly bleeding value. It’s like pouring money into a glass with a slow, invisible leak.

The Perspective: The bank’s secret playbook

For a long time, I thought a savings account was the pinnacle of financial responsibility. It’s the “safe” place to put your money. But it’s only safe for the bank.

Here’s the dirty little secret: The bank takes your money, which it pays you almost nothing for, and then it turns around and loans that money out for much, much higher interest. That difference is their profit. They want you to believe a savings account is your best option because it’s their best option.

The interest a bank gives you on a savings account is always, without exception, the absolute lowest return you can get. It’s a penalty for being too cautious. And once you see that, you realize you have to break up with your savings account, at least for any money you’re not going to need in the next six months.

This isn’t your fault. We were all taught to save and be responsible. But the old rules of saving just don’t work anymore. You’re a smart entrepreneur, a savvy professional. It’s time to play by the new rules.

The Action: Your simple, “do-able” escape plan

I know this might sound scary. You’ve worked hard for your money, and the last thing you want is to lose it. So, let’s make this simple and easy. We’re not going to gamble with your life savings; we’re just going to make your money work harder than a savings account does.

Step 1: Your emergency fund stays

First, keep a few months’ worth of living expenses in that savings account. This is your true emergency fund. The money you might need tomorrow, next week, or next month. This is the only money that should sit there.

Step 2: Put the rest to work

For the rest of your savings (the money you don’t need for an emergency), let’s put it to work. You’ve got options, all of which are very low-risk compared to the money-losing trap of a savings account.

If you’re a little cautious: Start with Certificates of Deposit (CDs). A CD is just a promise from a bank. You give them a certain amount of money for a set period (like 1 year), and they give you a much higher interest rate than a savings account. A great strategy is to “ladder” your CDs. Say you have $5,000 to invest. You can put $1,000 into a 6-month CD, $1,000 in a 1-year CD, $1,000 in an 18-month CD, etc. That way, money is always becoming available, but all of it is earning more than it would in a savings account.If you’re okay with a bit more stability: Consider bond index funds. Bonds are basically loans to a company or a government. They are generally much more stable than stocks. A bond index fund is just a big basket of these bonds, which diversifies your risk and gives you a much better yield than a savings account. You can easily set this up through an investment company.If you’re ready for long-term growth (10+ years): Consider a broad-based stock index fund. An index fund is a type of investment that holds a little bit of many different stocks, like a basket of all the biggest companies in the market. The S&P 500 index fund is a perfect example. You’re not picking individual stocks, you’re investing in the overall growth of the economy. Historically, this has proven to be the most powerful way to grow your money over the long haul.

Your journey to financial independence doesn’t start with a million-dollar idea. It starts with one small, smart decision. The first is to stop letting your money die a slow death. Let’s make it work for you, starting today.

You’ve got this!

-Mike

PS. You can preorder The Money Habit today! Click here.

 

The post Your Savings Account Might Be Keeping You Poor appeared first on Mike Michalowicz.

You get the email. Or the call. Or maybe your boss pulls you aside for a quick chat. “We’re really happy with your work. We’re giving you a raise.”

It’s one of the best feelings in the world. You’ve earned it. Your first thought is to call your spouse, your parents, or your best friend to share the good news. Your second thought, if you’re anything like the old me, is to do something really, really dumb with the money.

My first big raise? I celebrated by trading in my perfectly good car for a new one with a sunroof. I bought what I wanted when I felt like it, and I felt like a king. 

For about six months, I was still living paycheck to paycheck, just on a grander scale. 

It’s what I call “lifestyle inflation,” and it’s a trap so many of us fall into. We work harder, earn more, and then just… spend more.

The Insight: The raise trap

The moment a raise hits your bank account, your brain starts making a to-do list for that extra cash. A better apartment. New furniture. A vacation. We instantly adjust to our new income level, and before we know it, we’re living paycheck to paycheck all over again. The cycle is a sneaky beast. It doesn’t feel like a bad habit; it feels like progress.

You feel like you’ve been “promoted” to a new class of consumer. And suddenly, your old phone, your old car, and your old habits feel inadequate. So you upgrade everything, and poof! That beautiful raise you worked so hard for is gone, leaving you with the same old financial worries, just with a nicer backdrop.

Don’t get me wrong, celebrating your success is important. But when the celebration becomes your new normal, you lose the golden opportunity that a raise truly represents.

The Perspective: A golden opportunity

A raise isn’t just more money. It’s a moment of financial leverage. It’s a clean slate. It’s a chance to break free from the cycle for good. Think of it less as a reason to upgrade your life and more as a superpower you’ve just been handed to secure your future.

This is your chance to change the game. Instead of letting your expenses creep up to meet your new income, you’re going to put some distance between them. You’re going to use this moment of financial momentum to create a buffer, a barrier, a cushion—whatever you want to call it—between your spending habits and your financial goals.

The Action: The “wedge”

So, how do you do this? With a technique so simple, it’s brilliant. I call it the “wedge.”

When you get a raise, you commit to driving a wedge between your old budget and your new one. You’re going to take that extra money and immediately split it in half.

Half of your raise goes to your future. This is your non-negotiable. You commit this half to savings or investments. Set it up on auto-pilot to be transferred to a separate account the moment your paycheck hits. If your employer offers a 401(k), this is the easiest place to start. Every extra dollar you put in your 401(k) is a dollar you will not miss. You’ve already lived without it!The other half of your raise goes to your fun. This is where you can celebrate. Use this half to upgrade your lifestyle. Go on that nice dinner. Buy that new gadget. You’ve earned it. But only this half.

Let’s say you get a $400-a-month raise. You commit $200 of that straight to your 401(k) or a high-yield savings account. The other $200 is your spending money. This is the simple trick that lets you feel good about celebrating your raise while also building a foundation for financial independence. You get the fun, but you also get the freedom.

Don’t let your raise be a trap. Let it be a tool. It’s a golden opportunity to start building a future where you never have to worry about money again. Now that’s a real upgrade.

I’m wishing you a lifetime of financial independence. 

– Mike, author of The Money Habit

Preorder The Money Habit HERE!

The post Your Raise Is a Trap: A Simple Trick to Finally Break the Paycheck-to-Paycheck Cycle appeared first on Mike Michalowicz.