The Risk/Optimism Seesaw

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I was putting the final touches on my latest book yesterday. The editor wanted me to include some citations regarding some of the statistics I referenced in the book. One of those statistics related to optimism. The stat was:

70% of the people you run into in life are pessimistic and only 30% are optimistic.

There are a lot of variables that go into the self-made millionaire stew. Optimism is one of the most important variables. So too is a high tolerance for risk, which is only possible when you believe in yourself. The risk I’m talking about is calculated risk. This is very different from reckless risk, the type of risk most failures in life take. Optimism and calculated risk are joined at the hip. Your tolerance for risk will only be as great as your level of optimism. High risk tolerance requires high optimism. Low risk tolerance is caused by low optimism, also known as pessimism. Risk, however, can push you to the limit. When things are not going well, this risk can cause enormous stress. The only thing to make that risk tolerable is optimism. It’s like a seesaw. The level of your optimism balances out the level of calculated risk you are willing to take.

Elon Musk is perhaps the best modern day example of someone who was willing to take enormous calculated risk, putting everything he had on the line. His over the top optimism made that possible. He used it to inspire everyone he came into contact with. The investors, employees, the government, even NASA took risks others would find intolerable. And boy did they all need that over the top optimism. At the end of 2008, Musk and all of his companies were on the verge of outright bankruptcy. His Falcon 1 rocket had failed to reach orbit for the third time in early August, 2008. He had gone through most of his $223 million plus he had gone through most of the hundreds of millions venture capitalists and the government had invested in SpaceX and Tesla. Everything hinged on that fourth flight in September, 28 2008. If it too failed, it was over. Only it didn’t fail. The first privately built rocket made orbit. Musk was able to cobble together enough money to get them through the end of December, 2008. On December 28, 2008 NASA awarded SpaceX with a $1.6 billion contract.

The rest, as they say is history. Today, Musk is estimated to be worth $10 billion. His companies are changing the world. What saved the day for Musk was optimism. He, and the people he surrounded himself with, were infected by his optimism. They were all willing to devote their lives and their money to his cause. Musk made them believe they could change the world. the greater your optimism, the greater your tolerance for risk. Those with the most optimism are willing to take the most risk. High optimism, when combined with a high tolerance for risk, is what turns ordinary people into millionaires and even billionaires.

 

 

The Pursuit of Any Worthy Dream Must Become Your Main Purpose in Life

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Dreams come with baggage. They take time and effort. Sometimes the effort feels like an endless investment. It would be so much easier if there was a light at the end of the tunnel. The light of certainty. Unfortunately, there is no certainty when you are pursuing a dream.

In my research, I found that self-made millionaires were not the brave and confident heroes written about in so many books. They worried about the outcome of all of their efforts and were concerned about all of the money they poured into their dreams. They doubted themselves. But what makes them unique is that, despite so many mistakes, failures and unmet expectations, they kept pursuing their dreams. They just did not quit, despite the anguish.

When they realized success, it was not something that washed over them in one singular event. It was more or less an evolution. Success is only perceived in hindsight. It is typically not something that becomes self evident. There are set backs, which create doubts. Then turning points, followed by major advances which inspire confidence. Then more set backs, and more doubts, then more turning points and then more confidence. Dreams do not come easy. It’s not a linear climb up some ladder. It’s more like climbing monkey bars. Sometimes you feel like you are moving one bar backwards, sometimes you feel you’re moving one bar sideways, other times it feels like you are not moving at all and every now and then you find yourself moving two or three bars upwards.

Because of this inherent uncertainty and the emotional ups and downs, the pursuit of your dream must be for all of the right reasons. Money alone is not a good enough reason. You must see your dream as that thing you will do, irrespective of any financial gain, for the rest of your life. It must become your main purpose in life.

Good Habits Take the Grind Out of Grit

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Grit is just another word for persistence. Persistence, above all else, is the main secret of all success. Never quitting on a dream is the definition of persistence.

But being persistent requires that you grind it out. You must do certain things every day that move you closer to realizing your dreams and your goals. This is where habits come in. Good habits automate the success process. Because they’re automatic, unconscious behaviors and thinking, they take the grind out of the pursuit of success. They make you automatically persistent, without the need to rely on willpower. Automating success by adopting good success habits means you don’t have to grind it out, willing your way forward every day. Habits made success easier because they enable you to grind it out without really feeling like you are. Good habits take the grind out of grit.

The Secret Leadership Habits of Donald Trump, Elon Musk and Winston Churchill

Tom Corley boats - cropAccording to most of the political talking heads, Donald Trump should be long gone from the Presidential race. Yet he is growing in popularity. Elon Musk, according to all of the business pundits n 2008, should have been bankrupt. Yet he survived and is now being hailed as the new Steve Jobs. Winston Churchill’s beloved country, who was on the verge of annihilation during the blitzkrieg, refused to surrender and outlasted the onslaught, paving the way for Germany’s defeat. What secret weapon do these individuals possess that enable them to survive in the face of overwhelming adversity? Fearlessness. [Read more…]

Whose Wall is Your Ladder On?

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Most of us are very good followers. We do as we are told. We become accustomed doing as we are told. This habit forms early in life. Our parents, for our own good, make us do things we don’t want to do: wake up early for school, eat broccoli, do homework, house chores, etc. Doing what we are told is conditioned into us from the very beginning.

But then we become adults. Physiologically, this metamorphosis begins at about the age of fourteen and continues until about age eighteen. Some parents who recognize this transformation, slowly begin handing over decision-making for our lives to us. They encourage us to take individual responsibility. They let us make mistakes and experience some of life’s harsh realities and stand ready to offer advice and direction when things go wrong.

Unfortunately, parents like this are in the minority. Most continue to exert control over the lives of their children well into their twenties, preventing them from becoming independent thinkers and doers. They are sometimes referred to as helicopter parents. We pursue goals and dreams of our parents and not our own goals and dreams. We put our ladder on our parents’ wall and climb that ladder our entire lives. At some point, we realize we are unhappy doing what we are doing and become despondent or depressed about the work we do. This unhappiness usually begins to manifest in our mid to late thirties, when we have children of our own. We get stuck between a rock and a hard place because we believe we must continue to climb our ladder up our parents’  wall in order to provide for our family.

How do you break free? How can you take your ladder off that wall and move it? You need to take action on your goals and dreams. Devote small blocks of time every day in the pursuit of your own individual goals and dreams, either early in the morning, late at night or on the weekends. It is possible to climb your own wall if you devote the little amount of time you have every day, day in and day out. In the beginning it takes discipline. But once you get going your passion will take over and energize you. Eventually, this investment will get you higher up your ladder and closer to the top of your wall. You will begin to feel happy and enthusiastic as you climb your own wall.

Don’t wallow in self pity because you do not like what you do for a living. Take action. Put your ladder on your wall and start climbing it every day. Take action today.

Born Genius

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We are all born geniuses. Each of us is gifted with unlimited potential to grow and express our genius. Unfortunately, along the way, we accumulate limited, negative beliefs that act like brakes, stopping us from activating our individual genius. The good news is that it is never too late to unleash your genius. Our brains have the capacity to grow well into our eighties. So how do you unleash your genius?

  • Pursue something outside of work that you are passionate about. Start today.
  • Engage in some creative hobby or extracurricular activity 15-30 minutes today.
  • Read to learn for just 15-30 minutes today.
  • Practice optimism by looking for one thing to be grateful about in your life today.
  • Praise one person today for something positive or good they did today.
  • Read something inspirational today.
  • Journal only about positive things that happened in your life each day.
  • Set and achieve one small goal today.
  • Learn one new fact today.
  • Learn one new word today.

Your brain expands when you engage in positive growth activities. Making small daily self improvements helps unleash your genius. Today is as good a time to unleash your genius.

 

The Right WHY Makes Dreams and Goals Achievable

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I became an entrepreneur so that I could become a multi-millionaire.

Why do you want to become a multi-millionaire?

Becoming a multi-millionaire means I never have to worry about money.

Why does having more money mean less worry?

Because having money means I never have to worry about paying my bills and paying off my mortgage?

Why do you want to have enough money so you don’t have to worry about paying your bills and paying off your mortgage?

Because becoming a multi-millionaire means I won’t have to constantly work and make money to pay my bills and pay off my mortgage.

Why is less work important to you?

Because if I don’t have to work as much I can spend more time with my family.

Why do you want to spend more time with your family?

Because I am happiest when I am with my family.

Your ultimate true WHY puts all of your dreams and goals within reach. You must know WHY you want something. Your WHY must have powerful emotions behind it: happiness for you or your family, to get healthy, to leave your mark on life (legacy), to help improves the lives of the poor, children, battered women, the addicted, the homeless, society, to teach something profound, etc. If your core WHY does not get you emotionally charged and infuse you with passion, then you will eventually stop pursuing your dreams and goals. Willpower alone can only get you so far. Passion is behind every successful person. It is the fuel for success. The right WHY turns on the passion switch.

Release the Past

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When we focus on our past mistakes, misfortunes and failures we anchor ourselves to victim thinking. We tie our current circumstances to our past. Successful people release their past by taking individual responsibility for their mistakes, misfortunes and failures. Then they pick themselves up and move on. If you focus on the past you are never going to be able to change your future. You need to release the past. The only thing that matters is what you do today to move your forward in life. The past is a prison cell that will hold you captive. The key to opening that prison cell is to focus on the future.

Unrealized Potential Causes Regret

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If you were to write your obituary today what would it say? Would it paint a picture of someone who went all out in life? Or would it paint a picture of someone who was controlled by their fears and doubts? For the most part, we all have the same amount of time. When your time is running out the last thing you want to feel is regret – regret for not doing more with your life, for not utilizing your full potential.

Each one of us is born a genius. The human brain has the capacity to turn thoughts and ideas into physical things. What are you creating with your incredible human brain? When the clock is winding down, you want to be able to feel that you at least tried to paint a masterpiece.

Success Has Its Rewards

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Why is pursuing success so important? Because success has its rewards:

  • Happiness – Pursuing and achieving something you are passionate about brings you happiness
  • Increased Wealth – While success is not just about creating wealth, the wealth you do create has a domino affect that impacts almost every aspect of your life.
  • Growth – The pursuit of success expands your knowledge and your skills. It helps you grow into the person you need to be in order for success to happen.
  • New Experiences – The brain likes novelty. Pursuing success introduces you to all sorts of new people, new ideas, new opportunities and new ways of thinking.
  • More Opportunities – Success is like a magnet for opportunities. The more success you realize, the more opportunities present themselves.
  • More Freedom – While there is a cost to pursuing success (hard work/long hours), that initial cost should be viewed as an investment that will pay dividends down the road. Oftentimes this future payout manifests itself in the form of more freedom: more money and more time to spend doing doing what you want to do.
  •  Less Stress – Financial problems create an enormous amount of stress. According to a recent study by the Pew Research Center, 71% of the population in the world is either poor or near poverty. Struggling to pay bills, fund college tuition for your kids or simply survive day to day when you have little to no money creates constant, long-term stress.
  • Peace of Mind – Knowing your financial future is secure gives you peace of mind.
  • Greater Enthusiasm and Motivation – Success fuels your enthusiasm and motivates you like nothing else.
  • Increased Confidence – When you succeed at anything, it grows your confidence. More success translates into more confidence.
  • Ability to Help Others – When you are successful you can use your influence and your money to help causes you believe in. You can improve the lives of others.
  • Increased Intelligence – Pursuing success requires that you gain new knowledge and new skills. This growth increases the number of synapses (brain cells that talk to one another) and also increase the size of axons (component of every brain cell). Neuroscientists have found that the greater the number of synapses one has, the larger your axons and the greater your intelligence.
  • Improved Health – Success reduces many of the stresses ordinary individuals must contend with every day. Poverty or near poverty creates many stresses. Long-term stress increases the production of cortisol, which depresses your immune system making you susceptible to disease and infection.
  • Increased Optimism – Success improves your outlook on life. It gives you the confidence that you can overcome obstacles, suppressing your doubts and fears.
  • Enlightenment – The pursuit of success expands your view of the world and shines a light on your strengths and your weaknesses. It opens your mind to your true potential, which is unlimited.
  • Increased Good Luck – Success is like a magnet for good luck. It draws individuals and opportunities to you. It opens doors that were previously closed to you.