Everybody wants to feel like they are knowledgeable or better yet “right” when they speak their opinion. It cuts right to our primal roots of being human and wanting to feel on top. This can best be described as the emotion pride. In our society today, this feeling of achievement, dominance or success, however you want to describe it, is associated with money. It completely revolves and focuses around wealth. Therefore, when it comes to money, people like to feel as if they are experts or smart regarding the subject matter. Even if this need to be an expert puts them at an extreme disadvantage. They think if they are not in the know, then they are obsolete. This is probably the worst thing in the world because the emotion of pride is severely clouding the judgment of these individuals. The way in which money works, more so today than ever before, is a complicated science full of many dynamics. Fact, the typical person, average person is completely in the dark when it comes to managing their finances. News flash, if you’re saying well I am not the average person, hate to break it to you but yes you are.
People often confuse running a business successfully or earning a lot of money with being an expert in managing money. Wrong, it’s the worst affiliation ever. If you make good sandwiches, do good electrical work or manage a fantastic restaurant it does not mean you are knowledgeable in money. You are good at what you are specifically doing. There is a never ending amount of stories of how people lose these fantastic businesses due to their shortfalls in financial management. This whole situation gets exacerbated due to the idea of entrepreneurship and the concept of the American dream. Earning a living and money management are apples and bowling balls.
This is the epitome of hubris and actually represents how foolish these individuals can really be. The tool that sophisticated investors and savvy financiers use is financial engineering. The average entrepreneur knows nothing of this. Even famous entrepreneurs who have succeeded and achieved a great deal know little of this concept which limits their value. A smart individual with successful endeavors should always be open to lending an ear to a financial professional. Their creation can be built upon or improved upon no matter how great it is. Just look at what J.P. Morgan did with Carnegie Steel and Edison Electric. Took the famed companies of a legendary entrepreneur and inventor and created U.S. Steel and General Electric. Behemoths that live on today. The saying “If you think you’re the smartest person in the room, you are dumbest person in the room” describes this mentality best. Majority of successful entrepreneurs think their success makes them omniscient. They often marvel in their successes rather than constantly bettering themselves.