One of the things I love about my work is that I get to be part of the lives of a diverse group of people. With them, I co-create practical, sustainable solutions that shape how money impacts their lives – today and in the future.
Each person – whether a client; book, blog, or magazine reader; social media follower; or TV viewer – comes to the table with their own unique circumstances, questions, concerns, challenges, goals, and dreams.
Despite this diversity, there’s one thing they seem to have in common: they all suffer from what I call the knowledge trap – aka…
…they think they know what they have.
Like them, you probably think you know what you have, too!
I say “think” because it’s not that you are completely in the dark. You’re just are not aware of a “small” but extremely important detail. It’s a very innocent mistake, one that is obscured by what you do know and the fact that for the most part you’re likely doing all the “right” things.
The Gospel of Personal Finance
You don’t spend more than you earn, but you also don’t really know where your money is coming from or where it’s going.
Like my client who is operating at a profit, but doesn’t know where $10,000 went.
You invest – be it in your retirement plan or in a brokerage account – but you don’t really know much about your investments.
Like my client who owns twenty mutual funds, but didn’t know one-quarter of them were investing in the exact same stocks.*
Your debt is not too overwhelming, so you just focus on cutting expenses.
Like my client who did this and didn’t realize that the real solution wasn’t simply in cutting back. They didn’t have a debt problem, per se…they were an under-earner who needed to figure out how to earn more.
Do any of these examples strike a cord? If not, then think about where you might be suffering from thinking you know what you have. Questions like, “What’s missing?” or “What more do I need to know about…?” are great ways to help unlock the answers.
The knowledge trap often creates a knowledge gap – the one small detail you’re missing because it’s overshadowed by what you do know.
I see this happening all the time, especially when it comes to investing…especially when the stock market is at an all time high – like right now! Ironically, this is precisely when the knowledge trap (and gap) tends to increase.
Hence, the reason I’m offering – “From Dumb Luck to Smart & Savvy: How to be a Success Mutual Fund Investor.”
To learn more and to click here.
photo credit: Google Images
