The Hidden Financial Mistakes Even 7-Figure Tech Leaders Make
How High Earners Unknowingly Sabotage Their Wealth—and What to Do Instead
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The High Earner’s Hidden Wealth Trap
I once met a senior manager of engineering who made over $700K a year. Stock compensation. Salary. Bonuses. The whole package.
But when I asked him about his financial strategy, he laughed nervously and said,
“Honestly? I just keep piling money into my checking account, don’t touch my stock and hope I’m doing okay.”
He wasn’t alone.
Most tech professionals are exceptional at building wealth but struggle with managing it.
It’s not because they’re careless. It’s because no one ever taught them how.
They mastered algorithms, system design, and complex problem-solving… but no one handed them a blueprint for sustaining and multiplying their wealth.
And that’s where things start to unravel.
The Myth of “I’ll Figure It Out Later”
The biggest mistake?
Assuming that wealth management is something you can put off.
High earners often believe their income will always outpace their financial mistakes.
Until it doesn’t.
Until they realize they:
Have no structured tax strategy and overpay six figures to the IRS
Are sitting on RSUs and options without a real liquidation or diversification plan
Invest randomly—because a friend or a Reddit post mentioned a “hot stock”
Keep promising they’ll “look into real estate” but never take action
They think they’re doing fine… until a downturn, a layoff, or an unexpected life event exposes the cracks.
The 4 Biggest Mistakes Tech Professionals Make When Managing Their Wealth
1. Skipping the Legacy Statement.
"Ever feel like you’re making good money but still unsure if you’re on track? That’s because income alone doesn’t create financial security—a clear strategy does. A Legacy Statement helps you stop guessing and start building wealth with purpose."
Many tech professionals jump straight into investing without a clear why. They focus on asset allocation and returns but lack a foundational vision for their wealth. Without a legacy statement, it’s easy to get distracted by shiny investment opportunities that don’t align with long-term goals.
2. Setting Unrealistic or Vague Goals
"If you were building a bridge, you wouldn’t just say, ‘Let’s make it really big and strong’—you’d have blueprints, structural calculations, and precise engineering. Wealth works the same way. Without specific, measurable financial goals, you’re guessing instead of building."
Some set arbitrary financial targets without a clear plan to achieve them. Others aim too high—like expecting to replace a six-figure salary with investment income in a year—without understanding the effort and time required to build stable cash flow.
3. Ignoring Risk Management
"Tech professionals often make one huge mistake: overconcentration in their own company’s stock. Sure, you believe in the company—but what happens if the stock tanks? If your compensation and investments are tied to the same risk, you’re playing with fire."
Sure, you believe in the company, but what happens if the stock tanks? You're playing with fire if your compensation and investments are tied to the same risk.
Risk management isn’t just about diversification. It’s about understanding exposure and creating a financial structure that protects against downturns.
4. Failing to Document an Investment Thesis
"Would you start building a house without a blueprint? Of course not. So why would you build a portfolio without a clear plan? Your investment thesis is your financial blueprint—without it, you're just stacking bricks randomly and hoping they turn into a mansion."
Without a documented investment thesis, decision-making becomes emotional rather than strategic. A written thesis helps filter out bad deals, prevents knee-jerk reactions to market swings, and ensures investments align with long-term financial objectives.
Let’s Fix Them: The Simple Steps to Take Control of Your Wealth
1. Define Your Legacy Statement
Your wealth needs a purpose beyond just accumulating dollars. Take time to document:
Why you are building wealth.
What financial freedom looks like for you.
Who you want your wealth to impact (family, philanthropy, legacy).
2. Set Clear, Achievable Goals
Rather than vague aspirations like "retire early," set specific, measurable goals such as:
Generating $200k per year in portfolio income within five years.
Achieving a total portfolio return of 8% annually.
Allocating 50% of my wealth to income generating investments.
3. Implement a Risk Management Strategy
Avoid putting more than 5% of your net worth into any single investment.
Diversify across public and private investments.
Have a plan for equity compensation—don’t let it dominate your portfolio.
4. Create (and Stick to) an Investment Thesis
Write down your investment criteria:
What asset classes you’ll invest in.
Your expected return and risk tolerance.
Your process for evaluating new opportunities.
When to walk away from a deal.
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