Cómo pensar como un emprendedor podría convertirlo en un inversionista más inteligente

Bright Dickson (00:09):

Welcome to Money and Mindset with Bright and Brian, a podcast exploring the connections between good financial habits and positive psychology to help you find greater happiness and confidence. I'm Bright Dickson, Truist's resident expert in positive psychology. And I'm here with my friend and co-host, Brian Ford, who's the head of financial wellness at Truist. Hey Brian, good to see you.

Brian Ford (00:30):

Hey, Bright. It is good to be here. Today we're going to talk about the ways that entrepreneurs approach their money management and how we can borrow a page from their playbook, or avoid some of the pitfalls they sometimes fall into. To help us learn how to think like an entrepreneur, our guest is Ruchi Pinniger, who works with entrepreneurs and business owners daily through her company, Watch Her Prosper.

Bright Dickson (00:54):

This is a great topic because many entrepreneurs go into business based on an emotional drive or a passion, and they may not necessarily have the financial confidence or the financial literacy to always handle money in the most productive way. I can see how adopting an entrepreneurial mindset with personal finance can embolden your choices, but balancing those choices with an eye on risk and mental well-being is really important. I'm so excited to talk with Ruchi, and I know we've got a lot to cover. So are you ready to get started, Brian?

Brian Ford (01:25):

Heck yeah, I'm ready. Let's do it.

(01:34):

Today on Money and Mindset we're discussing the ways that entrepreneurs approach money management and how we can adopt an entrepreneurial mindset when it comes to personal finance. Joining our conversation is Ruchi Pinniger who's the founder and CEO of Watch Her Prosper, where she works with entrepreneurs and small business owners every day. Ruchi spent 20 years on Wall Street and in the corporate world, and she's helped thousands of business owners take a holistic approach to money and prosperity. She also writes a small business advice column where she discusses topics like tax readiness, budgeting, and mental health as it relates to personal and business finances. Welcome to the podcast, Ruchi.

Ruchi Pinniger (02:14):

Thank you so much. I'm so excited to be here with you both.

Bright Dickson (02:17):

Welcome, welcome, Ruchi. We're really happy to have you. We're excited. So let's start out by talking about the people you work with every day at Watch Her Prosper, entrepreneurs and small business owners. I'm really curious to learn what makes these individuals want to build a business? What makes them want to do it on their own? I'm sure you see some similar broad stroke characteristics across your clients. So first question, what are some of the qualities that you'd use to describe the entrepreneurs that you work with?

Ruchi Pinniger (02:48):

Well, I would say one of the biggest qualities of entrepreneurs in my experience is that they are bigger risk-takers. In fact, I remember when my first coach after I left Wall Street said to me, "Don't allow your own risk aversion to hold back your clients." And at the time I didn't really know what she meant, but now as an entrepreneur, I really see what she meant. And the other thing is that they're really also interested in autonomy by starting a business, scaling and selling, and they're open to learning, and open to trying new things, and they can be spontaneous. And I find that they tend to make quick decisions.

(03:24):

Now from a mindset perspective, they tend to be creative and passionate about their business and their industry, and they're also number avoiders. So a lot of our clients that we work with until they work with us tend to avoid their numbers at all costs, which is why it's so important to have trusted financial partners. And how we help our clients is that we take all that brilliance in their mind and put it on paper, and translate it into numbers that they really feel comfortable with.

Brian Ford (03:53):

Yeah, I think that's such an interesting phrase that you just talked about. Entrepreneurs you work with are sometimes number avoiders, and I think that's something that many of us can relate to. I mean, sometimes we see financial topics as intimidating or confusing, so sometimes we just avoid dealing with them like altogether, which isn't good. But let's talk about that for a moment. How does the entrepreneur tend to approach finances, and what can we learn from their mindset specifically relative to number avoiders?

Ruchi Pinniger (04:24):

Well, this is at the very core of why I started Watch Her Prosper in the first place. So many entrepreneurs have these stories where they say, "I'm not good with money." And those stories were my inspiration. So I knew I could take my Wall Street and finance experience and match it to these entrepreneurs to help them because a lot of them judge themselves, which can really have a negative effect on their mindset. And they know they need to look at their numbers to make good choices. They know they need to pay themselves, they need to budget, and forecast, and plan out their cash flow so they can save for taxes, and growth, and emergencies. And many of us are the same way whether we're entrepreneurs or not.

(05:04):

So at Watch Her Prosper, what we do is we create that safe space, partner with them for financial practices like great bookkeeping, tax time readiness, all through the lens of improving their money mindset so they can make better informed decisions using their number as a guideline.

(05:21):

Speaking of mindset, all people, not just entrepreneurs need to have a positive financial mindset. They need the financial confidence, they need to stop judging themselves, which is something so many of us do, and they need to give themselves grace. So we really work with people to help create a positive money mindset, and we do that based on these three pillars that I have come up with.

(05:45):

And prosperity if you really think about it actually is more than money. It's so much more than that. It's so much more than financial success. We take a holistic approach as we look at these three pillars of redefining prosperity. And this framework that I've created, which those three pillars are well-being, spirituality, and healthy relationships with people and with money.

(06:11):

So when I talk about well-being, I talk about really what is it that brings you joy? And I want you to budget for that, and I want you to schedule that in your calendar.

(06:21):

And in terms of spirituality, this is simply the acknowledgement that there's something bigger than us at play here. So think about the universe as a mirror and what you're putting out is what you're bringing back to you.

(06:33):

And then on the healthy relationships with people and money, from a people perspective, this is about reflecting on who you spend your time with. And are those relationships based on lifting each other up, or are they based on gossiping and complaining?

(06:48):

And then from the relationship with money perspective, right? This is all about how you feel about money. Where are your core beliefs coming from? And then of course, what are your money habits?

Bright Dickson (06:58):

I really, really love that, Ruchi. It's so comprehensive, but also mind-opening. But I see how those three things really go together. I think there are absolutely financial aspects to prosperity, but the mental side is just as important. Like, how can we be mentally prosperous too?

(07:19):

Brian and I and the podcast and in our own conversations too, we focus on this balance between this connection of financial well-being and mental well-being. And when I think about the entrepreneurial mindset, I see it as a combination of the practical aspects you need to run a business, and also the creative and aspirational elements of having a business. And you need that good balance in order to be successful. You can't dive into a creative endeavor, or a passion project without being smart about expenses, but you can't really calculate your costs without knowing what your creative goals are. They go together.

(07:59):

So as you said before, Ruchi, entrepreneurs tend to be forward-thinking and aspirational, but you can't be a number avoider. So how do entrepreneurs balance their business goals, their aspirations, and financial realities?

Ruchi Pinniger (08:15):

Well, this is really about balancing your vision and your mission, which is what I see as your end goal. So I often hear, "I'm profitable, so why do I feel broke?" When new clients come in and they're just getting started, it's because they overlook that there's more than profit to focus on. So profit, we see it as a starting point, not an end point. Your profit in your business is what allows you to be able to pay yourself, to save for taxes, to save for an emergency fund, save for growth, pay off debt, and ultimately ensuring that your business revenue is aligning with your personal goals and your values. So we often talk to our clients about these three common questions.

(08:57):

First is, what does your most prosperous life look like?

(09:01):

What do you need in your pocket to create it?

(09:04):

And what mindset do you need?

(09:07):

Then their answers to those questions really form the baseline for figuring out how we're going to best work together, and also create what I like to call their North Star as they make business and life decisions. So managing your personal finances can be much like running a business too. Because when you make money on your investments or you increase your income, you want to make a plan for that money and think about your priorities, whether it's to have more money in your pocket for spending, for saving, if you have children and you're saving for college, or if you're paying off debt. Here you want to really think about what your personal North Star is and how that money aligns.

Brian Ford (09:45):

Ruchi, this is a good conversation. I'm really looking forward to our next segment where we'll discuss some of the financial pitfalls entrepreneurs face, and how we can learn from them. Stay with us.

(09:55):

Bright and I are talking with Ruchi Pinniger about ways to apply an entrepreneurial mindset to our personal finances.

(10:12):

Ruchi, as you well know, one of the ways we succeed in business and in life is by learning from our mistakes. We tried something, it doesn't work, it doesn't go so well. We try again and we continue working towards that success. Through this process, we build confidence so that the next time we fail, we know that we're going to be okay because we can pick ourselves up, again and again. I mean, entrepreneurs, they have to accept they're going to make some mistakes in their business pursuits, and we're all going to make mistakes. So Ruchi, what are some of the pitfalls you see entrepreneurs face, and how can we actually learn from some of those things that you're seeing?

Ruchi Pinniger (10:54):

Well like we talked about, one of the biggest pitfalls is that they avoid looking at their numbers. They also tend to avoid talking about their numbers. And it's noted that many entrepreneurs would actually rather talk about the details of their own death than talk about money. Yes, I said death not debt. Yes. Okay. So how do we make decisions about growth, and hiring, and other business issues if we're not looking at our numbers?

Bright Dickson (11:22):

Yeah, it's so true. One of the things my mom always tells me is you'll regret the things you don't do more than the things you do. And I think that's really true. And talking about money, thinking about money, getting deep into it, it's hard for a lot of people. We actually just published an entire episode on that topic. It's called, Why money conversations don't happen at the dinner table. And Brian and I addressed some of the reasons why money is considered a taboo topic. I thought it was an interesting conversation.

(11:54):

But the biggest takeaway is that when we don't have open and honest conversations about money with the people we trust, family, friends, financial professionals like you, we can run into issues. And that's how we make mistakes, usually. We have to talk about our numbers to increase financial literacy and to build financial confidence.

Ruchi Pinniger (12:13):

You're exactly right. That's why having healthy relationships with people and money is one of the three pillars that we teach to entrepreneurs, and anyone can apply the same ideas to their personal finances as well.

(12:24):

So other pitfalls we teach our clients to avoid, that anyone can follow, on the money side are smart financial planning, ensuring your numbers, what's coming in, what's coming out, making sure you're spending less than you're making, that's really key. And really understanding those numbers is going to help you make smarter decisions, whether they're around your investments but ensuring that you're taking well-researched risks.

(12:51):

And then on the money side, trusting yourself with money, looking at your money, talking about your money with trusted people so you can learn and you can build confidence. And also the biggest thing, change the narrative from, "I'm not good with money," because that becomes your reality.

(13:10):

I want to hit you with two things. Okay? So 95% of how we show up is based on our subconscious beliefs, and we have an average of 60,000 thoughts per day. And the majority of those are negative recurring thoughts. So given that, how do you change the narrative of, "I'm not good with money?"

(13:30):

That's exactly why I created my RIR Method that I want to share with you. It's, Recognize, Interrupt, Reframe. So recognize when you're having a negative disempowering thoughts, interrupt it, and then reframe it with a more prosperous thought. So for example, go from, "I'm bad at the numbers. I don't trust myself." To, "Every day I trust myself more and more with money." And the biggest thing about that is not just the reframe, and this is key, and I want you all to hear this. This is about the embodiment of feeling what does it truly feel like to trust myself with money? That is really key. What's beautiful about this RIR Method, it's something you can start doing right away. It's free, it's all in your control, and you can use it in all areas of life, not just around money.

Brian Ford (14:26):

Yeah, I really like that, Ruchi. You've hit on many important topics that we cover on this podcast. I mean, I completely agree. And thinking like an entrepreneur applies to both our finances and our mental perspective, no doubt. This leads me to my last question, Ruchi. What other financial management tips do you give entrepreneurs that we also can apply in our own personal finances, and where do we start?

Ruchi Pinniger (14:50):

Well start with the basics, like budgeting. Look at your expenses. What can you cut without compromising your lifestyle? Get visibility into your numbers, and really understand that it's never too late to start good money management. Many entrepreneurs come to us because they've never done anything with their numbers, or they've been working with someone and they feel judged or unsupported. So we really help them to take charge of their finances.

(15:15):

And from a personal finance perspective, finding the right support system is really key. So working with caring financial partners who don't allow you to feel judged and give you space to ask questions, and someone who's proactive and will prompt you with questions if you don't know what to ask.

(15:31):

And then think like an entrepreneur. Be open to learning, open to trying new things, open to risk, but be smart about it and get help from others on your numbers and making decisions. And that's the importance of having good financial partners is that if you have someone to prompt you to think about things you haven't thought about, or to bounce your ideas and questions off of. And then of course, conversations we know are really great.

(15:55):

I also wanted to share that I created a complimentary Redefining Prosperity Workbook that's available for anyone who's interested to go deeper in those three pillars we talked about. And that's on my website.

Brian Ford (16:07):

Yeah, that's fantastic, Ruchi. Thank you for sharing that with our listeners. I really like what you talked about with your RIR Method, and it just got me thinking. I think it's fascinating when you were talking about how it's pretty normal to have some negative thoughts. And sometimes as humans, we go to worst case scenario thinking, which is crazy because if you could mathematically look at worst case scenario and how often that actually happens, it's very rare. But once we recognize that we have some of these negative thoughts, a lot of our subconscious, it has a lot to do with how we show up, I guess is what you're saying.

(16:45):

And I like how if we recognize that, again, Recognize, the R, I, Interrupt, and then Reframe, that just makes a lot of sense. It's a very practical tool that I think we can use to start having some more positive mindset which entrepreneurs have to do. They've got to get tough mentally or they may not make it. I think we've got a lot to learn there. Those are such great ideas, Ruchi. Thank you.

(17:09):

Bright, what do you think as far as top takeaways? What are you going to take away from today's show?

Bright Dickson (17:13):

Yeah, I also love the RIR Method. I mean, I think I've used something like it on myself for years, but I really like that framing of it. I think also it makes me think about growth mindset too, of moving from I'm bad to money, to I'm getting more confident and skilled around money every day. That's such a growth mindset shift. I think it's really, really actionable to take some of these steps and realize this is all skill and you can grow your skill. It's not who you are, it's what you do. I think that having that change is helpful for entrepreneurs, absolutely, in building their business. But helpful for all of us in general to just become more financially confident, but more confident as people in the world too. All of these skills are transferable.

(18:03):

Ruchi, this has been such an insightful conversation. Thank you so much for lending your voice and expertise to the podcast. We're so glad to have you.

Ruchi Pinniger (18:12):

Thank you so much. It's been incredible to be here with both of you, Bright and Brian.

Bright Dickson (18:18):

That's it for this episode of Money and Mindset with Bright and Brian. We hope you found the conversation inspiring and helpful for taking charge of your personal finances and well-being. We want to thank our guest, Ruchi Pinniger. You can learn more about Ruchi at her website, watchherprosper.com. Ruchi also has a complimentary workbook called Redefining Prosperity, which you can download at iwanttoprosper.com.

Brian Ford (18:42):

Yes, and thank you to our listeners for your continued support. You can find our other podcast episodes, great articles, very cool tools. I know Ruchi talked a little bit about budgeting, and so you can find some cool tools. You can find all that at truist.com/money-mindset. We'll be back soon with more episodes designed to help you boost your financial confidence. See you soon.

Speaker 4 (19:10):

This episode of Money and Mindset with Bright and Brian is brought to you by Truist.