We didn’t have a lot of money growing up.

My parents were educators in a small, rural community.  We were secure, but we weren’t fancy:

• We always drove from Michigan to Florida for spring break because my parents couldn’t afford air travel
• We drank goat milk, made our own syrup because it was more cost effective
• My dad hunted to fill the freezer, we had our own garden

My money mindset was developed during this period – it created a scarcity, security mindset, which is something I have to battle with as a leader and entrepreneur as I strive to think abundantly as I grow my business.  

What’s your money mindset?  And, digging a little deeper, how is your financial security?

You might not realize this, but your relationship with money and your personal financial situation has a tremendous influence over how you show up as a leader.

Here’s how this plays out in practice:

Decision-Making Independence Financially secure leaders aren’t beholden to their paychecks, which means they can make decisions based purely on what’s best for the organization rather than what protects their job. They’re more likely to challenge bad strategies, speak truth to power, and push back on short-term thinking that could harm long-term results. When you’re not worried about making rent, you can afford to take principled stands.

Risk Tolerance and Innovation Security breeds calculated risk-taking. These leaders are more willing to champion experimental projects, invest in unproven technologies, or pivot business models because professional failure won’t devastate them personally. They can think in decades rather than quarters, making them natural advocates for R&D spending and strategic investments that might not pay off immediately.

Talent Decisions Secure executives make better hiring and firing decisions because they’re not influenced by personal financial pressure. They’re more likely to hire people who might eventually outshine them, invest in developing subordinates, and make tough personnel decisions when needed. They can also afford to be more selective about opportunities, often leading to better strategic choices.

Negotiation Power Whether it’s with boards, investors, or business partners, financial security provides tremendous leverage. These leaders can walk away from bad deals because they don’t desperately need the outcome. This “walk-away power” often results in better terms and more respect from stakeholders.

Stress and Cognitive Load Financial anxiety consumes mental bandwidth that could otherwise be devoted to strategic thinking. Secure leaders have clearer headspace for complex problem-solving, creative thinking, and long-term planning. They’re also less likely to make impulsive decisions driven by financial stress.

The flip side is equally telling: financially insecure executives often become risk-averse, short-term focused, and overly political in their decision-making. They may avoid necessary but unpopular decisions, compromise their values for job security, or miss opportunities that require patience to develop.

This isn’t to say that financial security automatically makes someone a great leader, but it removes a significant constraint that can prevent good leaders from reaching their potential.

Now that we’re in the swing of summer, perhaps it’s a good time to pause and reflect on your relationship with money because it might be a surprising barrier that’s putting pressure on you in a surprising way.

I have a dear friend/Take the Lead Partner in Crime, Lisa Chastain, who’s launching a new book tomorrow – “Stop Budgeting, Start Living.”  Here’s a link to it.  She’s going to be a featured speaker at Take the Lead, too, this fall – you’re not going to want to miss out on learning from her.

Good luck on your reflection.  I know you’re looking for an edge on how to show up stronger – this one might be it.