Do You Have The Courage To Be Wealthy?
| January 18, 2012 | Posted by Roshawn Watson under Uncategorized |
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!
Related Posts
Editor’s Note: If you want to learn more about SOPA and PIPA, head over to Stop American Censorship.
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.
Strength of your conviction matters a lot. You may think you are good, but start having doubts if others don't.
Sly's conviction was greater than what others thought and he was right. Know thyself well.
Great post. It does take courage to say no to a purchase, to stick to your goal, to be strong when peer pressured to spend. It isn't always easy. But like with anything that you are courageous about, it almost always pays off in the end.
Very interesting. To me, one area where courage is important is in entrepreneurship. It takes courage to put one's passion on the line and risk it all. And, when it works, it creates jobs which is the backbone of our society and economy. Stallone is an excellent example.
There is a price to pay for wealthy. You are right, it takes a lot of courage to make the risky decision that will generate wealth and deal with the pressures that come along with maintaining that wealth.
Knowing yourself well is very important for many reasons. I'm so happy he didn't discount his worth based on others opinions of him. There's much wisdom in his experience!
Thanks Miss T!
Living frugally and investing in this culture can be particularly uncomfortable. "What do you mean you are not getting a car payment?" is a common response if you tell them you're through with debt. I guess the crowning jewel is that when a transmission goes out, you're prepared and can write check (albeit you'll likely be ticked). Frugality does pay overall.
Robert, entrepreneurship is pretty strong on my mind lately. I wish we could help more people become entrepreneurs. Often, I think there is a gap great between wanting to starting a business, starting a business, and running a business well. You're right though, when it works, it dramatically improve society in many areas!
Yeah, when the pressure is on, sometimes it helps to remember you are in great company. Many leaders face tough decisions and adversity! By strategically tackling such challenges, you can build enormous wealth over time, as you master negotiation, investing, foregoing security for high-reward scenarios, etc..
Great story about Sly. He stuck with his conviction and made it to the top. I agree about entrepreneurship as well. It's not easy to go out on your own. I still think it's a bit easier to do this when you're young. I don't know if an old Sly with more responsibilities could stick to his conviction.
Many of the things I have done require courage, but I never thought about it. I think through a decision, plan and execute. Does that take courage? Maybe! My plan is to set a goal, monitor and adjust my effort. It always works! My parents were courageous because they immigrated to the U.S. without money and started businesses just a few short years after comping here.
Great article. I agree that it takes a huge amount of courage to take that leap. I myself am a creature of habit and security 🙁
I do enjoy setting goals though!
Thanks Joe!
I think when you are young, most people typically have a lot less to lose and have the benefit of even more energy. That "old Sly" comment made me chuckle!
It appears you have a heritage of courage then. I do think that sometimes we get so caught up in living our lives that we don't examine just how far we come. Just like you said, you likely have required courage in your past efforts without even thinking about it. You just do "it", with "it" being whatever it takes to win.
Thanks!!!!
Habits in themselves are not bad thing. Neither is security inherently bad. For example, we all generally appreciate financial security to be good. Consistent performance is still performance. I think your goals are taking you there, regardless of whether you are getting their by "leaps" or not. Cheers!
It takes a lot of courage to be an entrepreneur and put your life savings on the line for an idea that you don't know for certain will succeed in the marketplace, or that may simply be ahead of its time. Also, it takes a lot of courage as a stock investor to take oversized positions in beaten down and unpopular companies, but that is about the only way to beat to market on a long-term basis.
I'm a fan of the Marine Corps. Book of Strategy for this very reason. In it, speed is your number one weapon in the face of adversity. I try and remember that when I don't feel like working…..keep moving.
Hey Biz,
Agreed. I guess the issue is courage is particularly important to entrepreneurs and investors. With outsized dreams and no promises, these individuals manage risks. The good ones emerge victorious.
Speed is definitely a weapon, as is being smarter. I think being first with the right information can definitely yield a competitive advantage. To your point though, even if you are initially incorrect (or imprecise), getting there first also a) familiarizes you with the process and b) gives you a chance to try again in many cases.
I love the story of Sylvester Stallone. Perseverance may be difficult, but in the end it can really be worth it.
Great article. So many people think that wealthy people are just lucky, and that being wealthy is easy. They miss the character required to build lasting wealth.
Thank you Juan! Yes, it's amazing what we can accomplish when we persevere, especially when we have a good plan and the resources needed (or a plan to get the necessary resources) to accomplish are dreams. Sometimes, we give up on our dreams way too easily!
Great post! I definitely needed to read something motivating this morning. Sometimes it's hard to stick to your goals with naysayers always going on with "you won't be able to do it" or "why bother?" when it comes to paying off debt and investing.
Thanks Mark!
Yes, I so agree with you. Character is such a vital component, yet in our microwave society it is rarely focused on. That's a great point!
Thanks so much!
I'm with you. I really wish the naysayers would just shut up. Constructive criticism is significantly different than being negative and condescending. People really should appreciate that distinction. I'm glad you were encouraged!
Great post. Do you teach psychology?
No, I'm a clinical scientist, but thanks for the compliment!
I like the stories of late bloomers. I like to think of having a second career after age 40.
Like Mark Pincus and Zynga!
Inspiring post. Are you a professional writer besides being a clinical scientist in disguise? Awesome stuff and keep it up!
Thanks so much Buck! To be honest, I am a professional writer in the pharmaceutical sciences and am a former writing consultant (don't tell anyone though :)!
Thanks Sam! I love stories of late bloomers too. Not everyone has it figured out in the 20s and 30s. I'm okay with that now but haven't always been. I love the intensity of trying to figure it out sooner but realize people are fallible. There will be shortcomings. Thanks for providing another example. I guess an entertainment example would be Susan Boyle or even JK Rowling: unlikely successes past their prime!
That was a terrific article, and I most especially liked the part about millionaires and their salaries. Even though I'm a level headed woman in my 40s, I'm still fooled by the media into thinking that every second person and their dog is fabulously rich and living happier, better lives than me in their ocean-side mansions. In reality, virtually nobody lives like that, and those that do are often in massive debt. I really have to stop watching House Hunters International. :oD
Thanks Melody,
Oh, I'm very happy that you picked that part out. The media has not highlighted the fact that most people are not able to build substantial wealth and live extravagantly. It's one thing to do it after you have already become wealthy, but even then it's difficult. I guess the reasons why the stories where people are able to do both make the news is because they are the exceptions; however, even in many of those cases, the "reality" stars are simply playing a part for the producers and us. We use the fantasy as a form of escapism, which is why shows like House Hunters International, Selling New York, Million Dollar Listings work so well. Thanks for your comment!
Outsize risks yield great rewards, whether with investments or in your career. I have enough confidence at work to say "Yes, we can!" to certain challenges.
It ain't bragging if you can do it.
Andrew,
That's a a great point. There are numerous applications, so limiting courage to only one aspect is somewhat shortsighted.
I love that: "it aint bragging if you can do it!"
Cheers!
I'm definitely a cowardly lion when it come to taking big risks. I like to have everything planned out, but I don't freak out if things go off course.
Stallone's story is incredible. Definitely inspirational.
Thanks for the post.
Thank you for your comment. Don't be so hard on yourself, as it sounds like you are able to handle the pressure when things don't go as planned. That in itself frees you up to take on new wealth-building opportunities. When I heard the Stallone story, I was floored. Thanks again for your kind words!
i love your blog, i have it in my rss reader and always like new things coming up from it.
Thanks. I'm happy to have you as a subscriber then. Thank you!
Funny, I never thought of it as courage! Maybe it is the courage of one's convictions. If I feel real strongly about something, I usually give it a lot of work and go forward using a conservative approach. It has worked for me for years.
That sounds like a golden strategy. I expected nothing less from you. 🙂
I love the perspective. I have always thought of "becoming wealthy" as the PAYOFF for all the hard work, but now I'm realizing it's a lifestyle. Once you change your mindset, you're on the path to becoming wealthy. Until that changes, you'll stay in the same place.
Thanks for posting.
You are very welcome. Yes, I certainly believe it is a lifestyle and a process. Thank you for sharing your comment. I love the name of your site by the way!
I agree with you!
[…] Related Article: Do You Have the Courage to be Wealthy […]
[…] fit within your budget, to tell your family, friends, coworkers, and possibly even neighbors NO. In Do You Have The Courage to be Wealthy, I discuss how courage is necessary to build significant wealth due to the risks you may undertake […]
I actually have a tendency to go along with all
the stuff that was in fact authored in “Do You Have The Courage To Be Wealthy?
| Watson Inc”. Thanks for all the actual information.
Regards,Orville
'Courage' perfect word to describe being successful….. you have to have it to be able to make them big decisions that could ultimately turn your life around.
Great post
Thank you Kiera