I wanted to share a few thoughts on overcoming setbacks. I do not know any successful investors who have not had their share of challenges enroute to financial independence. (Over the course of my investing career, I have taken losses of around 1 Million dollars.) I wanted to share this topic because I am in the middle of what was supposed to be a turnkey flip that has not gone as projected. It has been a while since I have had a project not work out and I have been contemplating the steps that I take to overcome a setback and thought that I would share them with you.
- 1.Take responsibility. No matter how or why the deal went south, you are ultimately the one that made the decision to pull the trigger and get involved in the project.
- 2.Forgive yourself and move on. Once you have taken responsibility, quit beating yourself up. There is no value in self-flagellation. Remember this: Sometimes we succeed and sometimes we learn.
- 3.Learn this phrase: “It’s all solvable.” No matter your situation, there is knowledge or resources somewhere that can help extricate you from the mess that you may be in. Once I learned this principle, I was able to remain calm as I worked through to a solution.
- 4.Keep a Lessons learned log. Keeping a written log of lessons that you have learned will help you from repeating painful lessons.
- 5.Hit the books. I find that a failure spurs me into further research to avoid making similar mistakes and often is the catalyst to finding an idea or investment that I never would have considered without that setback.
- 6.Seek out more experienced investors that can help guide you. I have had very little opportunity to learn from others more successful so I relish those times when I have that opportunity. I unfortunately have had to learn mostly from my own mistakes. A wise financial mentor can help you eliminate years or even decades on your journey to financial independence.
- 7.Keep taking action. Once you have researched your various courses of action, make an action check list and get to work. You cannot solve your problem with a Netflix marathon or endless entertainment distractions. Only sustained directed action will propel you on your journey to financial independence.
I believe that it is your response to failure and not the failure itself that will determine your ultimate success.
Good luck on your journey to financial independence.
Great advice. I specifically love #2. You've got to move on from issues that you run into so that you can keep pushing ahead to finding the solutions.
We all experience difficulties along the way... It's how we handle them that defines the successful investors.
Ashley : )
Thanks for sharing Chris, these steps will no doubt be useful for me as I take this journey into real estate.
@Chris L. Thanks for sharing, it is great advice.
great advise I agree 100%.
I saw a quote the other day!
"We can't solve problems by using the same kind of thinking we used when we created them." - Albert Einstein
I think it says it all!
@chis l. Thank for this invaluable post. I really like #4 about logging or Journaling your failures and setbacks. I am into Journaling and like to document my past failures and the cost associated with this failure and what I have learned from this set back and avoid making the same mistake again.
Thanks for sharing
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