#192: A Mental Reframe To Reduce The Fear When Taking Risks... "What Happens If This Works Out?"
Oct 20, 2023
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The podcast discusses the fear people have when taking risks in business or investments. It emphasizes the importance of considering the potential upside and using fear setting to make decisions. The episode explores analyzing risks and overcoming fears, and highlights the benefits of taking risks in investing and increasing earning capacity.
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Quick takeaways
Analyzing the potential upside is crucial when making investment decisions and can help overcome fear-induced paralysis.
Taking risks, particularly in real estate, can provide valuable lessons, experience, and long-term benefits, especially for individuals in their 20s and 30s.
Deep dives
Analyzing Risks and Overcoming Fear
In this episode, the host discusses the importance of taking risks in business and investing, and how fear often holds people back. The speaker emphasizes the need to think about risks from a fear standpoint and consider the potential upside of a decision. It is highlighted that while protecting the downside is crucial, analyzing the cost of inaction is equally important. The host encourages listeners to analyze the season of life they're in, consider the risks they can recover from, and challenge their fears by asking questions such as 'what happens if this works out?' This mindset shift can help remove fear-induced paralysis and lead to more confident decision-making.
The Benefits of Taking Risks
The episode acknowledges that taking risks can be easier in certain stages of life, where the potential loss has a minimal long-term impact. It is advised that individuals in their 20s and early 30s should embrace risk-taking opportunities as they have ample time to recover. The speaker emphasizes the importance of increasing earning capacity and suggests that taking risks, such as buying a property, can provide valuable lessons and experience. By analyzing the worst-case scenarios and comparing them to the potential upsides, it becomes clear that the downsides of not taking risks in real estate pale in comparison to the potential long-term benefits.
Analyzing the Upside and Overcoming Fear
The episode concludes by discussing the concept of fear setting. The host mentions Tim Ferriss's exercise of listing fears and analyzing them to determine the actual severity of the downside scenarios. By adopting a holistic approach and considering the potential upsides of a decision, individuals can overcome fear-induced analysis paralysis. The speaker emphasizes that even in times of uncertainty and market adjustments, taking calculated risks can lead to significant rewards. Encouraging listeners to think logically about the potential upsides of their decisions, the episode provides a mental reframe for approaching risk and overcoming fear.
In this episode, I dive into a topic that's a little different from our usual discussions. We're talking about taking risks in your business or investments and how to approach them from a fear standpoint. One of the main reasons people hesitate to invest in real estate or scale their business is fear. It's completely understandable, but it shouldn't hold you back.
As you listen to this episode, I encourage you to reflect on the ramifications of not making decisions and not taking risks. What opportunities could you be missing out on? How might your life and business be impacted by staying in your comfort zone? Remember, it's crucial to move away from purely fear-driven decision-making and start thinking logically about the potential upsides of taking risks. Whether it's investing in real estate or making leaps in other areas of your life or business, there's so much to gain.
In this episode we discuss:
How does fear impact investing and taking risks in business?
What is the importance of considering the potential upside when making investment decisions?
What is the concept of fear setting and how can it help in decision-making?
How does analyzing the worst-case scenario and potential benefits of a decision help in overcoming fear?
How can taking risks in investing and increasing earning capacity benefit individuals in their 20s and 30s?
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