Not long after the start of the global financial crisis I became
aware of a material difference between the so-called wealthy and the
wannabe wealthy. Apart from the obvious difference in fortunes held, I
have observed there is a difference in the financial education levels
and approach to life.
In the years I have spent as a financial adviser I have met only a
handful of people I would consider to be in the 'wealthy' group or true
'entrepreneurs'. None of them were my clients, and in fact I don't
believe any of them used the services of a financial adviser.
Not only did they have an advantage in material assets but they also
had a different outlook on life which encompassed enjoying a healthy
life.
On the whole financial advisers do not advise these entrepreneurs
because these people already understand the importance of acquiring
their own knowledge, skills and information about financial education.
They take responsibility for their own investment decisions and do not
let others (financial advisers) make decisions for them.
There are some other key differences between these entrepreneurs and
the wannabe's which I think points to why investors need financial
education if they want to become a true entrepreneur.
Some of these differences are:
* Wannabe's mostly believe what they're told. Entrepreneurs will do
their own research and make their own decisions. Do your own due
diligence and follow your instincts. It will rarely lead you astray.
* Wannabe's will seek a perfect plan and wait for the perfect time.
Entrepreneurs will accept educated risk and take action quickly once
they have compiled all the information.
* Wannabe's get distracted by focusing on positive thinking without
taking appropriate action. Entrepreneurs understand the importance of
positive thinking but also know that it only gets you so far. They will
combine positive thinking with a specific plan for action.
* Wannabe's do not share their ideas for fear of looking stupid in
front of their friends or family. Entrepreneurs will openly share their
ideas with like minded people. It's important to not listen to family
and friends as in most cases they have no credibility. Entrepreneurs
seek out financial education.
* Wannabe's generally believe they can do anything, but have no plan
or falter at the first sight of a problem. Entrepreneurs on the other
hand will use all available resources to put a plan into place and find
solutions to wannabe's problems.
* Wannabe's are focused on 'making money' and quite often lead
lifestyles with no focus on their health. Entrepreneurs are focused on
combining all elements of being wealthy, healthy and wise.
Financial education is available to everyone, particularly with the
aid of the internet but also through excellent courses, publications and
conferences which the true entrepreneurs seek out.