Shilpa Amladi asked a question regarding entrepreneurs saving for retirement.
See my answer in the video Want to be featured on the next weekly video? Add your question here in the comments or send them directly. See you on the other side!
Here is the full text of the video:
Hello Everybody and welcome to another Q&A session about Personal Finance and Financial Freedom for entrepreneurs. I’m Shlomo. Great having you and today I have a question from Shilpa Amladi.
And he’s asking me for an advice if entrepreneurs should save for retirement. And the short answer is, Absolutely! Actually, I don’t understand why they don’t do it.
Entrepreneurs these days have 2 extreme mindset.
One of the mindset is “I’m Too Poor“
“You know, I’m workin’ on my startup, I don’t have money.”
“What do you want? Do you want me to save?”
“Do you want me to invest? I don’t have that kind of money.”
So, this is one wrong mindset.
The other one is ” I’m Too Rich!“
“I’ll do so well with my startup that I’ll make my billion dollar exit.
Therefore I don’t need to save. I’m just gonna make it.”
So, for both of those, this is wrong.
For “Too Rich” one, yes of course he gonna do it like 99.9% of the rest of the startup’s that make it to a billion-dollar exit. I’m not saying that you shouldn’t try for this.
I’m just saying that the chance is very very small and you should be ready for that.
And the other one, “I’m Too Poor“.
Well actually, you have the power to control your finances and your cash flow.
You can do things to maybe make some more extra cash on other things like trekking out your place or Airbnb or whatever and maybe save on other expenses.
So you have the power to control your finances and really make it fit to your financial level and the quality of life that you actually able to support yourself. This is really really important.
So, both of those are wrong and should be changed.
And this is to prevent that if your startup fails, you’re not again on square 1 in terms of your finances. You’re actually already made progress in your life and in your financial life, in general to make it into the next level even though you’re an entrepreneur.
You’re welcome to join every week for questions here on LinkedIn.
Leave your comments and your questions down here. And also I have a live session on Instagram if you go @FreeFinancialSelf. Follow me there and you’ll be on the live session every Wednesday.
Thank you very much!