If you watch the news you’re going to hear some “talking head” spouting off about recession.   I’m no economist, but seriously…business is business!  What a great opportunity to talk about one of my favorite subjects:  informed, strategic, purposeful spending.

I believe in leveraging business income and expenses to maximize profit in a business.   What irks me is that government believes that spending money is going to make us more money.  It’s a great example of what-not-to-do.    Don’t get me wrong, I’m all about tax-dollars (that would otherwise be wasted on big government, & inefficient bureaucracy) in my bank account!     But this is the classic panic button that businesses (and government)  push as a knee-jerk-reaction.      

Yes, yes, yes I understand that when consumers buy, they’re buying from a business, who buys from suppliers, who buy from wholesalers, who buy from raw-goods producers, who buy electricity and property from local resources.  I get that.  But leading with expenses is a no-win situation.

In business, spending money you have not earned is called liability.  The purpose of business is to create a profit; in other words, assets.  We’ve all heard (and probably said) “It takes money to make money.”   I agree with this.  But I think that as business owners we can become caught up in consumerism— buy, buy, buy.    In business, we justify it because “it takes money to make money.”   By doing this, we miss the opportunity to (as Teresa Romain calls it) “attract and retain” income off of the income we already have.   

When you spend a dollar on your business, treat it like an investment.  Expect and demand multiple dollars back for every dollar you “invested.”  Don’t let your good dollars chase bad results.  My recommendation is, take your Stimulus Check and invest it.  Put it into your Roth IRA;  invest it into your children’s education fund.    Stimulate your own wealth creation,  or use it to pay off debt.  Remember, debt is money you spent that you hadn’t yet earned.   Reducing your own economic liability, is about the best thing you can do for YOUR economy!