Empowerment Journey Step 1

Good businesses add value to peoples’ lives. The best businesses change the world in the process. Within the economic system that spans most of planet Earth as I write these words in the early 21st century, the way people and businesses are rewarded for adding value is with money. I didn’t use to see it this way. I had a lack of clarity in my young adult life around what path I wanted to take. I saw a lot of problems in the world and didn’t want to “go along” with a system that produced them. I used to believe that becoming wealthy was all about getting lucky, ripping people off, or some combination of the two. The history of capitalism does have dark episodes, such as the struggle for humane working conditions in factories during the industrial revolution, or the shameful accounting frauds perpetrated by companies like Enron in the early 2000s. We hear examples like this and they stick in our minds because they are graphic and audacious. But what proportion of all businesses do these unethical companies represent? And if we’re going to weigh the deeds of the worst actors, then shouldn’t we do the same for businesses that change the world for the better?

(Good) Business is About Solving Problems, Not Creating Them

As I write this, Apple and Microsoft are the two largest companies on the planet, both over $2 trillion in market capitalization (i.e. the total value of their outstanding shares of stock). What did they do to grow to such stature? Microsoft created software like Windows and Office, which helped people use the personal computer for tons of practical things, and unlocked efficiencies not dreamed of before. Growing up in the 1980s I remember computers being mostly used for games (maybe this is because I was a kid at the time), and word processing. Apple revolutionized how we listened to and purchased music with the iPod, and then revolutionized mobile communication with the iPhone. Think about how much value these inventions have created for people worldwide. Actually to drive the point home, try to imagine our world without PCs or smartphones. Remember texting with T9 word??

Negativity Sells, but it Won’t Help You Become Wealthy

We all benefit from changes that improve our lives and businesses can be the conduit through which that beneficial change occurs. The most successful companies are the ones who solve the biggest, most widespread problems, i.e. improve the most lives. But even companies that create tremendous value are not perfect. They make mistakes (newsflash: companies are run by PEOPLE). And there are absolutely bad companies out there exploiting workers, ripping off customers, and otherwise cheating the system. It’s human nature to focus on the negative, so we hear about these “bad apples” more often — or perhaps they stick in our minds more readily because they violate our morals. It’s an easy story to tell; we’re told since we’re young that “money is the root of evil”, and the cutthroat businessman is a universally familiar archetype. Telling stories is one thing, but believing that you have to take advantage of others to make money is is dangerous because it limits our ability to function in that system. It keeps you poor. The opinions I had in my youth were limiting my potential. After all, if “the system” is so unjust, why try to better myself? Why go to college or pursue a career? Better to just listen to angry 90s music and wait for the revolution …. (it never came).

Nobody wants to be “evil”, we all want to be the hero of the story. And pretty much all of us – for better or worse – live in a capitalist society (unless you’re reading this in China). I’m not here to cheer that or complain about it – I just believe in acknowledging reality. So if we’re going to spend these precious moments of life on Earth in this “system”, why not acknowledge that, though capitalism isn’t perfect (it’s messy like a lot of things in life), many businesses provide value to people and solve problems. Shouldn’t the people behind those businesses be paid for the value they create? If we believe this, then money transforms from something negative to something like a badge of honor. From this perspective, making money lines up with helping people. We can feel good while at the same time working to generate wealth.

That’s empowering.

People Aren’t Perfect, but We’re Built to Collaborate

It bears repeating: businesses are run by people. Some people are good and some aren’t; people run the spectrum from Mother Theresa to Charles Manson. In my experience, the average person is somewhere in between. I’ve found that people are generally virtuous at their core, more often than not. Let’s say six times out of 10. They have a fundamental sense of empathy and can distinguish between right and wrong. Since businesses are operated by people, I believe the same mathematics applies. In other words, most businesses are not Enron.

No one brings about change on their own; anything meaningful requires collaboration. Humans are social creatures; we evolved in cooperative social groups, which helped our ancestors avoid getting eaten by saber-tooth tigers and other calamities in the distant past. We crave interactions with each other, validation, and we are wired to solve problems. The process of natural selection ensures this – our ancestors who were content to live in the dark cave by themselves without fire probably got eaten by the tiger before they could pass on their genes.

Good businesses harness this human desire to interact socially, solve problems and gain recognition. They give people a platform to perform work that (hopefully) helps others, thus providing a sense of purpose. Employees get a sense of fulfillment knowing they are changing the world for the better. Starting a business venture is a difficult undertaking, and the profit incentive encourages people with ideas to bring them forward, and supercharges our internal drive to solve problems. Great businesses harness this capacity for problem-solving and scale it up across increasing numbers of employees and stakeholders as they grow, bringing ever greater resources to bear on a problem until it is either conquered or fundamentally changed. And everyone involved in the process – employees, shareholders, etc – gets their share of the rewards in the form of money.

So if people are inherently problem-solvers at heart, and creating a business is a powerful way to solve problems that rewards people with money, shouldn’t we be able to look at money with more grace and less skepticism? Is money the only thing that matters? No. But is it something we can feel good about pursuing, rather than criticizing? I believe so.

Money is a Tool to Build a Rich Life

Why does it matter how you view money? I want you to see money in a more positive light so you can improve your financial life.

Eventually I got sick of working low-paying jobs and being broke all the time. I realized I had a lot to learn and finished college. When I flipped my mindset around money and business, I discovered that businesses are on the front lines working to solve some of society’s most pressing problems. The profit motive has driven some huge breakthroughs in our world. And yes, periodically it does also produce some entertaining scandals.

After finishing college in 2007, I went into finance, and I’ve spent my career since then managing peoples’ money. During this time I’ve been fortunate to work in “good” companies with colleagues who have helped many people make sound financial decisions. I’ve seen how consistently getting money right makes it more likely that peoples’ goals for themselves and those they care about will become reality. When you hit your goals – whether it’s 8000 steps for the day, or taking your dream vacation – you feel like you are in control of your life. You feel empowered.

My mission is to bring that empowering feeling to people by providing a simple roadmap for getting your finances in order. From there, I’ve found it’s much easier to really decide what you want out of life, and pursue it wholeheartedly. In my career I’ve learned some solid financial and business principles, and seen the powerful effect they have when correctly applied. I’ve also made blunders which I had to figure my way out of — learning “the hard way”. I have no qualms sharing all of the above, with the hope that others in similar situations find some nuggets that may help. I’m not a billionaire (not yet anyway), but I have been able to find a sense of control and comfort around finances, which has helped me lead a more peaceful and fulfilled life. I’d like to share this ongoing journey of empowerment with you.

The First Step

Everyone’s contributions interact to shape the world we live in – for good or bad. Capitalism is just a system of how we divide up resources among each other. This “system”, money, people – none of these are 100% good or bad, they are somewhere in between. If we want “the system” to be better, let’s engage with it. Imagine where your particular talents or interests might be most needed. Recognize there are many options, and if one doesn’t work, iterate and try something else. Add value to the world, get paid for it, and feel good about your contribution. Don’t get negative, and above all, don’t heckle from the cheap seats. Get in the game.

On our journey of empowerment, this is the first step.

Follow me on Twitter to continue the conversation, and thanks for reading!