Money is often treated as a cold, rigid thing. Just numbers on a page. But money is more like energy. It flows. It moves. It fuels ideas and people. If you build products for a living, learning how this energy works is essential.
Why Understanding Money Matters
As a PM, you decide where to direct energy. When you choose which feature to build or which market to explore, you decide where the money goes. If you can read and talk about money, you will make better choices and explain them to your team.
Money is not just logical. It is emotional too. Many of us grow up with fears or myths about money. When you understand the flow of money, you worry less and act with more confidence.
Money as a Flow of Energy
Think of each euro you spend as a unit of energy. You invest that energy to create value, like building a feature or reaching new users. When the product grows, it returns energy to you in the form of revenue. This cycle repeats, growing stronger when guided wisely.
As the old Latin maxim goes, sequere pecuniam — follow the money.
You don't need to master complex formulas to see money this way. Instead, notice simple flows:
- Investing in the future: Money spent on things that help you grow, like better tools or skills, is energy put into long‑term strength.
- Daily running costs: Money spent on keeping the lights on—like hosting or paying team members—is energy that keeps the system alive.
- Value returned: When customers pay for your product, that energy returns. It can be used to improve the product, reward the team, or explore new ideas.
By watching these flows, you understand whether your product is gaining energy or losing it. You can then decide where to adjust.
Mindful Decisions
Seeing money as energy encourages mindfulness. You ask, "Does this decision give us more life, or does it drain us?" You weigh not just the cost, but the meaning. For example, delaying a flashy feature to focus on stability might not bring immediate excitement, but it preserves the product's health.
You can still measure things like how much each customer contributes or how long it takes to recover an investment, but you don't need to dive into heavy formulas. Focus on the story behind the numbers. Keep asking simple questions:
- Are we spending money on things that matter to our users?
- Are we creating enough value to sustain and grow our work?
- How do our choices make our team feel about the product and the company?
Practical Wisdom
Understanding money as energy transforms how you work as a product manager. Here are key takeaways to carry with you:
- Communication without fear — Speaking the language of money lets you collaborate with finance teams as equals, not adversaries.
- Clarity in decisions — When you see money flowing, you can explain your choices with confidence and help others understand the trade-offs.
- Reduced stress — Understanding the basics removes the mystery and anxiety that often surrounds financial discussions.
- Empowered action — You become a steward of energy, directing it where it creates the most value for users and the business.
Final Thoughts
Money is a powerful form of energy. It can build, connect, and sustain. When you, as a Product Manager, learn to see money this way, you gain a new tool. You can communicate with finance teams without fear and guide your product with clarity.
Understanding the basics of how money flows and affects your decisions reduces stress and empowers you. Embrace money not as a burden, but as an ally.
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