Why Financial Knowledge Isn’t Enough to Make You a Successful Investor

Often, coaching prospects approach me, curious about investing but worried they don’t have a financial background. I always reassure them: financial knowledge is the easiest part to pick up.

But here’s the truth I’ve come to learn - financial knowledge alone doesn’t guarantee investing success.

During my years in banking, I worked alongside professionals who knew the financial markets, could analyse financial statements, and fluent on assets classes or investment options. Yet, not everyone was great with their personal finances.

Some carried credit card debt.

Some splurged on luxury items the moment bonuses came in.

Others made risky investment decisions, over-leveraging themselves on stocks or property.

And some simply didn’t invest at all – held back by fear, analysis paralysis, or lack of time.

Over the years, one thing became clear: investing success isn’t just about what you know. It’s also about how you think and what you do consistently.

The three ingredients for investing success:

1️⃣ Financial Knowledge

Yes, it’s essential to understand how investing works. You need to know how markets function and how to evaluate investment options before you dive in. But knowledge on its own is like having a map and never getting in the car. You won’t get anywhere until you take action.

2️⃣ Money Mindset

Your beliefs around money shape your behaviour – especially when faced with uncertainty – and how you handle emotions of fear and greed.

Some people believe that keeping all their money in the bank is safest, even if they understand inflation eats into it. In private banking, I met clients who always ensured their money was working for them and not sitting idle.

A healthy money mindset helps you stay calm when markets dip, resist impulsive decisions, and stay focused on your long-term goals.

3️⃣ Financial Habits

Knowledge and mindset must be backed by action. Good financial habits - like setting aside money consistently, reviewing your goals, and sticking to your plan - are what actually build wealth.

I’ve had clients come in thinking investing is a full-time job. I often have to “disappoint” them…in a good way! Once you learn the basics and set things up, long-term investing becomes quite passive. I joke that they’ll need to find other hobbies to fill their time.

When knowledge, mindset, and habits come together, investing becomes more intentional and more successful.

This is the foundation I focus on in my coaching work, because I’ve seen firsthand that the biggest obstacles to investing aren’t a lack of information - they’re money mindset blocks and inconsistent actions.

So if you’ve been feeling stuck, even though you “know” what to do… check in on your mindset and habits. That could be the missing piece.

🎬 Featured on CNA938!

I was invited for a live interview on CNA938’s Mind Your Money to talk about financial wellness. And it got me reflecting deeply.

Think about a monk - someone who owns almost nothing, lives simply, and feels completely at peace. No financial stress, no scarcity mindset…just a life aligned with his values. That’s financial wellness too. So I shared this:

“Financial wellness is having clarity and awareness of your financial situation, and feeling comfortable with it. It’s not about how much you earn. It’s about whether your wealth supports the life you truly want to live.” ~ Dinah Poehlmann

You can be surrounded by luxury and still feel fear, guilt, or envy every time you check your bank balance. That’s not financial wellness.

A few questions for reflection:

🪴 Do you feel in control of your finances?

🪴 Does your lifestyle reflect your values…or your fears?

🪴 Does your money give you peace of mind…or keep you up at night?

Interested to take back control and get clarity on how to invest on your own?

Take this conversation further by booking a non-obligatory "Get Clarity" call with me to explore how my coaching services can help you. Book an appointment here.