An important aspect of money mastery revolves around allowing yourself to fail at times.
True, a maxim of legendary investor Warren Buffett is, “Rule No.1: Never lose money. Rule No.2: Never forget Rule No.1”. But not only can we not all be Warren Buffett, the man himself hasn’t consistently been able to keep to this principle. There’s no disgrace in losing money occasionally. Even the best fail at times.
That’s not to say you should set out to take crazy risks that will at best lead to silly losses and at worst financial ruin. No, this is about letting go of the curse of perfectionism. And unfortunately being a perfectionist can also be the fast-track to unhappiness.
Don’t Let Fear Overwhelm You
The trouble is, many individuals are too scared to even engage in any risk at all with the fear that they will lose money.
Failure isn’t an option.
They see hiding money under their bed, leaving their cash on a low-interest deposit account, or simply sticking their head in the sand as a long-term strategy for managing their money.
But this isn’t a sustainable strategy for building wealth or getting control of your personal finances. The impact of inflation on the purchasing power alone of the money stuffed in the mattress will ensure you aren’t getting ahead. You may think that you are building wealth this way. But, actually, you’re not even really standing still using this approach.
What To Do
The game is to learn how to take calculated risks, risks that are in line with helping you achieve what you want out of life. It doesn’t have to be a complicated strategy or sophisticated version of high finance.
Having a simple investment plan may suffice. But doing nothing is not an option. That’s real failure.
That’s what the money mastery movement is all about. It’s partly about learning the specific skills required to improve your financial position. We can all benefit from applying more of the “how to” principles out there.
But it’s also importantly about having a conscious understanding of how you think about money. You may be a skydiving, adrenaline-junkie individual in your day-to-day life, yet very low risk in the way you look at money. It’s about getting the balance that works for you.
Let It Go
Allowing yourself to fail occasionally with your finances can be liberating. It allows you to be less attached to results and more focused on your approach. In other words, it can help you to reframe a disappointing outcome to one that helps you improve your strategy for the future. It’s about being able to think in a more emotionally detached way.
And if you don’t allow yourself to lose once in a while, it’s harder for you to learn how to take the necessary risks to move forward in the future. So allow yourself to fail once in a while. It can help you build resilience.