Recently, Petra Coach presented a webinar, Why You Aren’t Rich Yet, with David Waddell and Teresa Bailey of Waddell & Associates. The webinar is aimed at helping entrepreneurs identify key biases that may be preventing them from maximizing their net worth and also shows them how they can change things to actually make a substantial profit. You can see the full webinar at PetraCoach.com/why-you-arent-rich-yet-with-david-waddell-teresa-bailey.
Why You’re Not Rich Yet Reason #1: Because You’re An Entrepreneur
But you’re also human. So, you have many tremendous attributes, but you also have some communication and thinking biases (bias as in being an illogical preference or prejudice). This gets in the way of your pursuit of wealth.
The answer may be behavioural coaching – changing the way you think about wealth management. When it comes to investing, you have the investment return (what your return should be), as well as what your return actually is. Then there’s the behavioural gap – the difference between the investment return and the investor return (based on the human aspect). Coaching helps close the gap.
Why You’re Not Rich Yet Reason #2: Because You’re Too Busy To Be Rich
You’re too busy with your business. Too busy in the weeds, so to speak. If you place priority here (delegate, shift focus, etc.), change will happen.
Why You’re Not Rich Yet Reason #3: Because You Don’t Have A Coordinated Strategy Implemented Across All Of Your Professional Service Providers
Anna is an entrepreneur with £200,000 in cash. She needs to decide what to do with it, so she calls her bank. The bank offers to increase Anna’s overall deposit interest rate (as well as a few bonuses) if she deposits the cash.
Then she calls her tax accountant. They suggest that Anna should open put it an ISA and an investment account.
Lastly, Anna calls her financial advisor, who tells her to think about retirement and to put it into her pension.
What did Anna do? She pays off her apartment and avoids the 3.5% interest on the mortgage. It made sense.
Here’s the problem: none of Anna’s providers reviewed Anna’s balance sheet (and life, in general). They didn’t consider possible factors like family, lifestyle, debt or liquidity. It’s possible Anna’s only liquidity was the £200,000 or her only debt was the apartment( some would argue the mortgage with a 3.5% rate was an asset).
Why You’re Not Rich Yet Reason #4: Because You Don’t Have A Strategy Outside Of Your Business Strategy