By: Roshawn Watson
Many of the activities required to become a self-made
multimillionaire involve forsaking conventional wisdom and overcoming adversity.
The path to great wealth is often the road less travelled because the journey
can be uncomfortable and lonely. It often requires bucking societal norms on
spending, indebtedness, investing, and vocation. One must have resolve and
courage to follow such a path. Let’s explore three ways courage can be
instrumental in building wealth.
Courage Is Important Because of the
Risks
One key area that shapes many of our financial and
professional decisions is risk. Lacking courage when facing risks can be
detrimental. Most millionaires are self-employed, business owners, and/or
fastidious investors. Some have navigated the professional or corporate jungles
to achieve high levels of responsibilities. Accordingly, millionaires deal with
risks that would unnerve many.
I recently learned points from a Morgan Stanley
managing director regarding professional risks. She was very bullish on gaining
additional levels of responsibilities and taking on new challenges on the job.
She advised young professionals to adopt a similar mindset. She questioned the
wisdom and safety in ducking for cover during an adversarial situation. In her
own words, if the bullets are flying, ducking will not necessarily spare you. By
keeping your eyes open, you can at least see what’s coming your way. She
recommended being comfortable with F.E.A.R. (False Evidence Appearing Real) and
thriving. Her words ring true, perhaps more so in the current climate than ever
before.
It’s hard to gain a competitive advantage by always
playing it “safe.” Taking strategic risks is often necessary to dominate a
market or even a small niche. Regardless of whether you are contemplating
starting your own venture, increasing your positions in paper assets (such as
stocks and bonds), or exploring an unconventional career path, remember a)
there’s a reward for merely trying and b) there are also risks involved in
“playing it safe.” Have a reality check regarding risks. The wealthy don’t avoid
risk, and neither should you.
Sometimes the greatest risk is not taking
one
Courage Is Important Because The Path Is Lonesome
Sometimes people are so fickle. When watching the
Tudors, one thing I noticed was how quickly the public and royal sentiments
changed towards “noble servants.” It didn’t matter whether you were Cardinal
Wolsey, the Duke of Sulfolk, or Anne Boleyn, you could go from saint to trash in
Henry’s court in a matter of days without changing your activities,
faithfulness, or your beliefs. Even today, we’re just as capricious. The same
people who are criticized and ridiculed for their differences become celebrated
as innovators and visionaries after a little success.
With respect to wealth accumulation, dealing with the
discomfort of being different and criticism is particularly important. First, a
high-consumption lifestyle is at odds with accumulating and maintaining high
levels of wealth. Most millionaires do not get huge paydays each
year.
- Fewer than five thousand of the nearly 100 million US
household will earn $5 million in a single year.
- The majority of millionaires earn a small fraction of $5
million in a year.
- Approximately, two-thirds of millionaires are worth less
than $2.5 million.
The point is, it is the tortoise’s approach
(consistent investing over time and frugality), not the the hare’s approach,
that leads to
prosperity
and wealth accumulation for most millionaires. Second, paucity
of vision or lack of care may cause the people around you to not appreciate the
difficulty in decisions you must make. Standing alone in the truth is perhaps
one of the most challenging aspects of becoming successful, especially when
those who disparage your efforts continue to play with little thought of
tomorrow. Somehow,
broke people afford everything!
When broke people make fun of your financial
plan, you’re on the right path.- Dave Ramsey
When you feel lonesome, remember that 1) your dream
does NOT require the approval of everyone you love, and 2) the same people who
malign your priorities and assassinate your character may become your allies
tomorrow. People are fickle that way.
Courage Is Required Due To
Adversity
A gem cannot be polished without friction,
nor people perfected without trials. Chinese
proverb
Some people seem to feed off of the havoc they
create, and the more successful you become, the bigger the target is on your
back. I’m convinced that poisonous people sometimes cause trouble to distract
attention from their own lack of accomplishment. Most productive people I know
don’t have time for drama.
Regardless of whether it’s dealing with a critical
person, failing to meet ridiculously high expectations, facing outright lies, or
competing with the nonfriendly, when you attempt to do something great, you will
face adversity.
Let me give you an example. Sylvester Stallone was a
struggling actor and writer when he became so inspired by the Muhammad Ali fight
with Chuck Wepner, where Wepner refused to quit against perhaps the greatest
fighter of the world, that Sylvester reportedly wrote for 20 hours straight. The
product of this period was the script to
Rocky. He pitched his script to movie producers, and they
loved it, BUT they wanted to cast another actor as the lead. In fact, they
raised Sylvester’s payout to $325,000 to sell the script and NOT star in his
film. At the risk of losing the script, the producers finally settled on paying
him $35,000 for the script AND casting him as the title character. This occurred
during the 70s, so in inflation-adjusted dollars, the original payout that
Sylvester walked away from would exceed $1.3 million.
What value do you attach to YOUR
dream?
Today, Sylvester Stallone’s main movies have grossed
upward of $2.6 billion. Imagine if he had given in to the negativity regarding
his abilities, looks, and chances of making it amongst the rich, famous, and
beautiful. Instead, he held on to his convictions and excelled admirably. It was
passion
and courage that allowed him to reject every deal involving
relinquishing his dream.
Your conduct under pressure will reveal the true
measure of your character.
Closing Thoughts
Courage is defined as mental or moral strength to
venture, persevere, and withstand danger, fear, or difficulty. Courage is
important to wealth accumulation because it takes strength to defiantly proclaim
that the culture of debt is ridiculous, to resist conspicuous consumption, to
start businesses when pundits argue “9 out of 10 businesses fail,” and to invest
in the markets during “the worst recession since the Great Depression.” It take
strength to tell relatives NO when they try to set YOUR financial priorities.
Indeed, wealth researcher Thomas Stanley listed courage as amongst the most
common and important
characteristics
of millionaires. I may not know the value of your dream, but I
admonish you not to sell yourself short. Take courage, live well, and
PROSPER!
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