10 lessons for a rich, happy life through intelligence and wisdom

I have met some of the most intelligent minds in my financial planner and coach journey. They come from diverse backgrounds: senior professionals, young married couples, entrepreneurs, and even single mothers who bravely navigate the challenging waters of life on their own. However, I have noticed a curious pattern. Intelligence, while valuable, is not always a guarantee of success or happiness. Often, the decisions we make and the wisdom we cultivate genuinely shape our lives.

As a financial planner and coach, I have encountered clients with impressive IQs and degrees from prestigious universities who still need help managing their finances or making sound decisions. This got me thinking: Why do intelligent people often make such poor choices? This question took me on a journey of exploration, revealing that intelligence alone is just one piece of the puzzle. What truly matters is how we use that intelligence—with wisdom, good decision-making, and self-awareness. As a mentor, I play a crucial role in guiding my clients towards better decision-making, helping them understand the limitations of their intelligence and the importance of humility in decision-making.

The Limitations of Intelligence: A Lesson from Ramesh's Story

Let me share the story of one of my clients, Ramesh. A senior executive at a top firm in Gurugram, Ramesh had always prided himself on his sharp mind and quick decision-making skills. With an impressive IQ and a string of academic accolades, he believed he could tackle any challenge. However, when managing his wealth, he found himself in a quandary. Despite earning a substantial income, he often faced financial stress and anxiety.

Ramesh's problem was not a lack of intelligence; instead, it was an over-reliance on it. He believed his intelligence would automatically translate into financial success, leading to overconfidence. He invested in complex financial products he barely understood, thinking his intelligence would guide him through. This overconfidence led to significant losses and a growing sense of frustration.

What Ramesh learned, and what I emphasize to my clients, is that recognizing the limitations of our intelligence is not a sign of weakness, but a source of empowerment. It is essential to understand that smart decisions often require more than just a high IQ. They require humility, a willingness to accept that we do not know everything, and an openness to learn from those with different expertise.

Cognitive Biases: Meena's Journey to Overcoming Confirmation Bias

Take Meena, a young entrepreneur from Delhi who came to me seeking advice on growing her business. Meena is incredibly bright, with an innate ability to innovate and think outside the box. However, she had a tendency to stick to her original ideas, dismissing any feedback that needed to align with her vision.

This is a classic case of confirmation bias—favouring information that confirms existing beliefs while disregarding anything that contradicts them. Meena's intelligence led her to believe that her way was the best, causing her to miss out on valuable insights from her team and advisors.

Through our sessions, I encouraged Meena to actively seek out opposing viewpoints and listen with an open mind. Slowly, she began to realize the value of diverse perspectives. By overcoming her confirmation bias, Meena strengthened her business strategies and built a more inclusive, innovative team culture.

The Role of Emotions: Raj's Struggle with Emotional Decision-Making

Raj, a retired government officer, approached me to help him manage his retirement funds. Raj was highly analytical and had spent his career making decisions based on logic and data. However, when it came to his finances, Raj's emotions often got the better of him.

He would panic at the slightest dip in the stock market and make impulsive decisions that led to losses. Despite his intelligence, Raj found it challenging to separate his emotions from his financial choices. I have seen this common issue among many of my clients—allowing emotions to cloud judgment, even when we know better.

For Raj, the key was recognizing the emotional triggers that influenced his decisions. We worked on strategies to manage his anxiety, such as setting clear investment goals, diversifying his portfolio, and reminding him of the long-term perspective whenever fear sets in. Gradually, Raj learned to make decisions based on reason rather than emotion, leading to a more stable and confident financial outlook.

Groupthink and Social Pressure: The Case of Suman's Startup

Suman, a young and ambitious woman from Bengaluru, co-founded a tech startup with a group of college friends. All of them were brilliant, with ideas and visions that seemed to align perfectly. However, as the company grew, Suman noticed they were missing critical opportunities and making errors that could have been avoided.

She realized that their close-knit group had fallen into the trap of groupthink, a situation in which the desire for harmony or conformity results in irrational or dysfunctional decision-making. Each member was afraid to voice dissenting opinions, fearing it might cause conflict or be seen as a lack of trust in the group's intelligence.

Suman took a bold step by encouraging open discussions, even if they were uncomfortable. She invited external mentors to challenge their assumptions and pushed her team to embrace diverse viewpoints. This shift not only saved her startup from potential pitfalls but also fostered an open-minded and inclusive culture, strengthening its decision-making process and making the company successful.

The Importance of Humility: Arjun's Journey to Self-Discovery

Arjun, a successful businessman from Mumbai, approached me for financial planning. He was brilliant and victorious, yet he hit a plateau in his career and personal life. Despite his achievements, he felt fulfilled. Our conversations made it clear that Arjun's biggest challenge was his lack of humility. He was so used to being the smartest person in the room that he rarely listened to others or considered their perspectives. His overconfidence had created blind spots that he was unaware of.

I encouraged Arjun to practice intellectual humility — to acknowledge his limitations and be open to learning from others, regardless of their background or expertise. He started attending workshops, reading books on personal development, and seeking advice from those he once dismissed. Over time, Arjun found new opportunities for growth and discovered a deeper sense of satisfaction and happiness.

Critical Thinking Skills: How Leena Navigated Complex Problems

Leena, a single mother from Jaipur, was one of my most inspiring clients. Balancing her career while raising two children, she faced numerous challenges. Leena was highly intelligent but found herself overwhelmed by the complexity of her decisions, from managing her finances to planning her children's education.

Together, we worked on developing her critical thinking skills — teaching her to analyze situations objectively, question assumptions, and think independently. Instead of being paralyzed by the sheer volume of choices, Leena learned to break down complex problems into manageable parts, evaluate her options, and make decisions confidently.

Her journey was a powerful reminder that critical thinking is not just an innate ability but a skill that can be cultivated and refined. It's about being curious, asking the right questions, and constantly challenging oneself to think deeper and smarter.

The Impact of Expertise: Ravi's Lesson on Staying Curious

Ravi, a seasoned real estate developer from Chennai, had always relied on his expertise to make business decisions. With years of experience under his belt, he felt confident in his knowledge. However, the market was changing rapidly, and Ravi realized he was struggling to keep up.

Despite his vast experience, Ravi's reliance on past success had made him complacent. He was resistant to new ideas, thinking his expertise was enough to navigate any situation. When a significant project failed, he came to me for guidance.

We discussed the importance of staying curious and open-minded, even as an expert. I encouraged Ravi to engage with younger colleagues, attend industry seminars, and read about emerging trends. This shift in mindset reignited his passion for learning, and soon, Ravi was back on track, leading his company to new heights.

Learning from Mistakes: Sunita’s Transformative Experience

Sunita, a senior marketing professional, was brilliant at her job. However, she habitually was overly defensive about her mistakes, often blaming circumstances or other people. This attitude prevented her from growing and improving in her career.

During one of our coaching sessions, I shared my experiences of failure and how they were invaluable learning opportunities. I encouraged Sunita to view her mistakes not as failures but as stepping stones to success.

Gradually, Sunita began to embrace this mindset. She started analyzing her mistakes, learning from them, and applying those lessons to her future decisions. This change improved her professional performance and helped her gain respect and trust from her colleagues and superiors.

The Value of Collaboration: Varun’s Team Transformation

Varun, a dynamic young leader in a multinational company, believed that his intelligence and vision were enough to lead his team to success. However, he soon realized that his team was disengaged and lacked motivation. The problem was not with his intelligence but with his approach.

Varun came to understand the value of collaboration. He began involving his team in decision-making, encouraging them to share their ideas and insights. This shift in strategy created a more inclusive environment where everyone felt valued and motivated. The team's performance improved dramatically, proving that collaboration often trumps individual brilliance.

Cultivating Wisdom: The Journey of Pragya

Pragya, a client from Hyderabad, taught me a profound lesson in wisdom. A retired teacher, she was not the wealthiest or most educated, but she radiated a sense of calm and contentment. Pragya's life was a testament to the power of wisdom over intelligence.

She had lived a modest life, making decisions based not just on logic but also on her values, experiences, and empathy. Pragya's wisdom came from a deep understanding of people, a willingness to learn, and the ability to adapt to life's challenges. She exemplified that true richness comes from wisdom—the kind that helps us make sound judgments, navigate complexities, and live a life of fulfilment.

Conclusion: Embracing Intelligence, Decision-Making, and Wisdom for a Rich Life

Through these stories, I've realized that while intelligence is a valuable asset, it is not the sole determinant of a successful and happy life. The combination of intelligence with good decision-making, critical thinking, emotional awareness, and, most importantly, wisdom leads to true richness.

In my work as a coach and financial planner, I strive to help my clients cultivate these qualities. I encourage them to recognize their biases, manage their emotions, value collaboration, learn from their mistakes, and, above all, seek wisdom. This approach helps them achieve financial freedom and a rich, meaningful life filled with joy, contentment, and purpose.

So, the next time you face a tough decision, remember that intelligence alone may not be enough. Embrace humility, think critically, seek diverse perspectives, and cultivate wisdom. This combination will guide you toward a vibrant and happy life.

The Balance of Intelligence and Wisdom: My Personal Reflection

As I reflect on my personal and professional journey, I see how these lessons have shaped my life and the lives of my clients. In my early career, I, too, was confident that intelligence and knowledge were the ultimate tools for success. Armed with degrees, certifications, and an unquenchable thirst for learning, I thought I had all the answers. But life, with its unpredictable turns, taught me otherwise.

I remember a time when I was faced with a challenging decision regarding my business. I had just launched my new venture, The Richness Academy, and was determined to make it a success. I meticulously planned every detail, from the courses to the marketing strategies. However, despite all my intelligence and preparation, things were not going as expected.

Clients were not signing up as quickly as I had anticipated, and I was burning through my savings faster than I had planned. I began to question myself. Was there something I had missed? I was doing everything by the book, but I was still struggling. It was then that I realized I had fallen into the very traps I now help my clients avoid.

I needed to rely more on my intelligence and more on wisdom. I was overconfident in my abilities and had yet to seek out diverse perspectives or admit that I could be wrong. I had to take a step back and practice the humility I often preached. I began reaching out to mentors, listening to feedback from clients, and, most importantly, embracing the idea that I still had much to learn.

I started making better decisions by shifting my focus from merely being 'right' to understanding what truly worked. I learned to balance my knowledge with intuition, experience, and the lessons of others. This change in approach helped me turn my business around and grow it into the thriving academy it is today.

Disclaimer

The information provided in this article is for educational and informational purposes only and should not be construed as financial, legal, or investment advice. While every effort has been made to ensure the accuracy of the information, the author and publisher assume no responsibility for errors, inaccuracies, omissions, or any other inconsistencies.

About the Author

Taresh Bhatia is a CERTIFIED FINANCIAL PLANNER and a Coach at the Richness Academy. With years of experience in guiding individuals and families toward financial freedom, Taresh specializes in helping clients achieve a rich and fulfilling life by aligning their financial decisions with their personal values and long-term goals

"Financial Freedom with Taresh: Ask Away!” Send your Querry to taresh@tareshbhatia.com