Episode 8: Making Money vs Generating Wealth with Erik Potts

August 2, 2021


Well, we brought in an expert for this one! My guest today is one of my closest friends, and my financial advisor, Erik Potts. With over 19 years in the Financial Planning Industry, Erik is here today to help you understand the power of shifting into the mindset of building wealth versus just making money. Because let’s be honest, most of you listening have the numbers, you are making the money, but what are you doing with it?

Listen in to hear about how you can create a plan, not one that’s going to freak you out, but one that will empower you to create the life you want now – and in the future.


[4.27] Meet Erik

Erik has been a wealth manager for 19 years. He started his own company 7 years ago, and he recently joined forces and merged companies with one of his friends. Erik started his entrepreneurial journey when he was only 14, starting his own landscaping company, so he acquired the entrepreneurial mindset at a very young age.

[5:18] The Most Common Mistake

One of the questions that Erik asks his clients is “What does money mean to you?” because everybody has a different mindset when it comes to money. One of the most common mistakes, according to Erik, is that people try to keep up with the Joneses. In his experience, it all starts with building good habits, like saving first, keeping the same lifestyle even when the income goes up, etc.

[9:46] Net Worth

Essentially, your net worth = assets – liabilities. This means that just because you make more money doesn’t mean your net worth grows. So, when you do make more money, you need to ask yourself where is it going to go to appreciate and to then grow your net worth. Your net worth is important, especially when it comes to your retirement. There are a lot of tools to increase your net worth, but it all comes down to setting your goals and being disciplined in keeping those goals.     

[13:45] Where to Start

So, you’ve been putting money away but you don’t really have a plan what to do next? Erik’s first advice is to team up with a financial advisor, more specifically an independent firm that specializes in planning, not just investments. And you want to do it sooner rather than later, because small changes now can make a huge difference in the future.

[15:46] How to Work with a Financial Advisor

First couple of conversations with your financial advisor should be about where you are, what you enjoy, and what is important to you. From there, you set the stage for your income, your expenses and assets and then you move on to creating a plan. This process doesn’t have to be stressful, it should feel like a conversation, but it is a conversation that is important for the whole family. 

[19:25] Different Assets to Consider

When we hear about assets, our mind immediately goes to real estate. But, according to Erik, real estate is not for everybody – there are a lot of different strategies involved and you might need some advice. Other assets that might appreciate include: mutual funds, stocks, your business, dividends paying assets, etc. But it’s all about finding the right return on investment.

[21:15] Your Business as Your Asset

The most important thing when it comes to selling your business is keeping good books. This way, if you ever decide to sell it, somebody can easily take a look at your books and see how profitable your business is. Erik’s advice is to always stay on top of your numbers, regardless if you do it yourself or you have a bookkeeper.   

[25:40] Making Money Vs. Generating Wealth

If you are making more money, but you are not investing it properly, down the road you will get stressed. Because it’s not about how much money you make, it’s about how much money you accumulate. Saving doesn’t have to be boring. Understanding your ultimate goal and seeing the steps you take each year to get there can be quite exciting. And it’s never too late to start, because if you change your habits now, it’s going to produce benefits for the rest of your life, even in retirement.

[31:12] Instilling Good Money Habits in Our Kids

Building good habits for our kids and having them understand how to work smarter is extremely important. In Erik’s experience, most kids today lack financial literacy. Sometimes, we are so invested in growing our business that we don’t dedicate enough time to teaching our kids. Instead, we expect them to learn by osmosis. We need to be more intentional when it comes to raising our kids as leaders. 

[38:21] Closing Words of Wisdom

Erik’s closing advice is to make sure that whatever you do for your business, you enjoy it. That way it will never feel like a job and your kids and people around you will feed off that energy. Also, make sure that you surround yourself with the right advisors and create a team that you can depend on.


Add a comment
+ show Comments
- Hide Comments



The 30-minute, step-by-step guide to gain clarity, get out of the weeds of your business, and get more needle moving things done in way less time.

get me focused!

On the Air

The Luminary Leadership Podcast

We take the guesswork out of unlocking your full potential as an entrepreneur. We'll give you the secrets to make more money, create more freedom, and have more margin, all while still making your family a priority...

tune in

Our Services

We love serving ambitious entrepreneurs like you who are ready to break through to their next level of potential in business, leadership, and live. This is how we do it!


Browse By Category

Business Strategy




Emails people are clamoring over and talking about... 

You're no ordinary leader. You're building your dream differently — with your values and family in tact, and your potential uncorked! This is the spot where I share the super personal stuff to the behind-the-scenes of what works (and what doesn't) in our business. It's also where we can chat!

See ya in the inbox!

Join the No Ordinary
Leader Community


Creating Influential Leaders in Entrepreneurship: BTS + big news only shared to my insiders!