The Secret to Business AND Personal Profit

Hillside Hardware

Hillside Hardware had been around for 30 years. It earned enough to survive but never enough to grow. The owners—two brothers—pulled almost all profits out of the business every year for personal use.

The store stayed outdated, the signs were old, and the inventory was always low. Customers slowly shifted to bigger, newer stores.

Finally, the brothers changed their approach. They decided to treat Hillside Hardware like a business that needed to be rebuilt.

For one full year, they took only modest salaries and reinvested every extra dollar. They upgraded lighting, fixed displays, improved the front entrance and added new products.

Sales increased 35% in the first year. By year two, Hillside Hardware was making more money than ever before. Only after the business was strong did the brothers increase their pay.

They proved the rule: Build the business first, then reward the people.

CityWave Clothing Stores

CityWave was a national clothing brand with more than 200 stores. It was barely earning a profit, but it was stable.

When the new CEO took over, he wanted to be known as “the CEO who cared the most about workers.” He immediately gave everyone a big raise, added healthcare insurance and doubled paid vacation time.

The CEO did nothing to increase the company’s strength—no new marketing, no store improvements and weak online sales. It’s competitors were aggressive and constantly improved themselves while CityWave got old.

Six months later, CityWave had to close 60 stores. A year later, the company filed for bankruptcy and closed all the remaining stores. Thousands of workers lost every benefit they had been given.

Caring about workers is good—but caring only about workers and not about the business destroyed the entire organization.

Horizon Solar

Horizon Solar installed panels in five states and was growing fast. Everyone was expecting big raises, bonuses and new benefits. Other companies were handing out rewards early, and people wondered why Horizon wasn’t doing the same.

But the CEO, Maria Lopez, had lived through a company collapse earlier in her career. She had seen what happened when leaders rewarded workers before the business was strong. She refused to let that happen with Horizon Solar.

So even though the company was quickly growing, Maria didn’t give out raises or new benefits. Instead, she focused on the company’s strength.

She upgrading equipment, built larger cash reserves, trained more installers, improved customer service, expanded the sales team and modernized the website. No one got pay raises, but production quota bonuses allowed top employees to increase their own pay.

Then one summer, a major competitor collapsed when the government stopped giving tax breaks for solar energy. That company had spent too much on rewards and not enough on stability. Hundreds of workers lost their jobs overnight.

But Horizon Solar quickly adjusted and stayed strong. They had savings. They had equipment. They had trained staff. And while others were shutting down, Horizon picked up new clients, new contracts and found new opportunities.

A year later, Maria called a company-wide meeting. People held their breath. Was it bad news? Good news?

Maria smiled and said, “Because you helped build a strong company, we can now reward everyone—and do it without risking a single job.”

She announced pay raises for everyone, a new healthcare plan and a profit-sharing retirement program.

The room exploded with cheers.

Horizon Solar became known as a solid company that everyone respected. It was awarded “Best Place to Work” awards and continued to grow every year.

1. Marge and Brad

Marge and Brad were both earning over $100,000 per year. But instead of treating their household like a business, they treated it like a Vegas jackpot.

They bought two new cars, took expensive vacations, and ate out almost every night. They never made a weekly financial plan or looked at their bills together. They assumed their high income protected them. “We’ll just keep making more every year until we’re millionaires!”

But their personal “business” was in bad shape. Marge’s car kept breaking down. Brad made some bad investments. And suddenly they were using credit cards to cover their lifestyle. Between car payments, personal loans and credit card minimums, they were paying nearly $10,000 per month—just in loan payments. Their debt exploded until they could barely make minimum payments.

They learned about the 12 money-management rules and decided to change their financial lives.

First, they organized all of their debts and bills per Rule #3. They were shocked to see they were paying over $5,000 per month in credit-card interest alone. Their “personal business” was drowning.

Next, they created their first weekly financial plan. They listed every source of income, every bill, every loan payment, and every unnecessary expense. It was painful, but it gave them clarity for the first time in years.

They stopped eating out except on special occasions. They canceled unused subscriptions. They sold their expensive cars and paid cash for an economy car. Every extra dollar went toward reducing their highest-interest debt.

Within six months, their credit-card balances had dropped by more than $40,000. Their interest payments were nearly cut in half. After a year, they finally had a small savings account—something they hadn’t seen since college.

Today, Marge and Brad have a profitable personal “business.” They spend money only after planning it. They follow all 12 rules. And now, instead of their money controlling them, they control their money.

2. Tasha and the Surprise Layoff

Tasha loved spending money. When she got her first good job, she bought furniture on payments, signed up for five streaming services and ordered takeout almost every day. She never saved because she thought her job was safe forever.

Then her company unexpectedly laid off half the staff—including her.

Her personal “business” had no reserves. She had no plan, no savings, and no way to pay her bills. She panicked.

A friend told her about the 12 money rules. Tasha decided to run her life like a business from that day forward. She cut her spending, made a weekly money plan, and took a part-time job until she found a new full-time one.

Within a year, she rebuilt her finances. She now keeps three months of expenses saved. When she finally found a better job, she said, “I’ll never run my personal business blind again.”

3. George and the Grandkids

George loved spending money on his grandchildren—video games, toys, birthday parties, anything they wanted. He felt proud doing it. But he wasn’t watching his own “business” finances. He didn’t notice his checking account shrinking and his savings disappearing.

One month, his electric bill came in higher than usual and he couldn’t pay it. He realized he had been rewarding the “employees” (his grandkids) instead of keeping the business strong.

He started following Rule #3. Every Sunday, he held a short financial planning meeting with himself. He set limits on gifts. He put extra money toward paying down his credit card.

Within nine months, his savings account was growing again. And when he did buy presents, he paid cash instead of using debt. His personal business became steady and safe. His grandkids were just as happy.