Welcome to Wise & Wealthy: A weekly newsletter full of proven ideas to become smarter and wealthier. I send this every Monday and every other Thursday.
#21 – July 28, 2022
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In a study, researchers found that about a third of the participants are more afraid of starting their own company than sky diving. Even if many of them hate their jobs and want to quit.
It’s natural to be afraid of doing something new. So how do you overcome that fear? How do you get started with something you’re afraid of?
I use the LAA Framework.
- Learn – Consume as much information as you can in a limited time.
- Act – There comes a time when you have to put down your book and start practicing what you learned. Many people never start.
- Adjust – Most things we pursue in life are not final. You can always switch jobs and careers, start a different business, pick up new hobbies, move to another city, and so forth. Simply adjust your path if it doesn’t work out
Starting a business, switching careers, investing in stocks, and so forth – these aren’t a matter of life and death.
When you realize that your psychological fear can be allayed by preparation, you’ll be just fine.
↳ Preparation: The Antidote to Fear of Failure
Let’s do a thought experiment that I picked up from Mr. Money Moustache.
Ask, “What would I do if I were rich?”
Then pretend you’re talking with someone who asks you, “and then what?” The other person keeps going until you reach the core of the matter.
Here’s what it might look like if you think you need to have more money.
- Someone: “What would you do if you made a million bucks a year?”
- You: “I would probably buy a new house, go on vacation, and buy stuff for my family.”
- Someone: “And then what?”
- You: “Finally pursue my passion project!”
- Someone: “And then what?”
- You: “Uhhmmm…Other than that, probably do the same things I’m doing now?”
If you really think about it, when we have more money, we think about spending it first. And then we always come back to the usual: Living life.
Once you’re done spending, you still have to do what all other happy people do: Wake up, spend your day in a meaningful way, and enjoy yourself.
↳ What Would You Do if You Were Rich?
One interesting thing
Back in 2007, I worked as a mutual fund advisor at ING. I thought I was an investing genius so I also invested my own money.
A year later, I had lost about 60%-70% of my investment.
It was such a painful experience that it kept me from investing until 2015. That’s when I started my existing strategy of simple investing.
It’s all about having a basic understanding of how investing in stock really works.
When you have more knowledge, you know what you’re doing. And that will take away the fear. That’s how smart investors build wealth.
Thanks for reading! I hope you found this edition of Wise & Wealthy useful.
All the best,
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When you’re centered, nothing can hurt you. You will have inner peace no matter what happens.
How to unlock Stay Centered
You can join the challenge for free. Every day, you’ll receive a short email with a small challenge that inspires you to live better.
I highly recommend sharing it with your friends so you can go through the program together. I did it with my team, which was a lot of fun.
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