Recently a good friend of mine taught me what ‘risk tolerance’ means and it’s completely changed my thought process. I decided to share because I think it will be a great conversation starter for those of us who get it or something great to learn for those who don’t. Risk tolerance is just that, learning how to tolerate risks to then get the reward. There’s what I like to call a sweet spot when deciding to take on a risk (such as chasing a dream or buying a car). This sweet spot is sandwiched between being in over your head and not taking advantage enough to really get anywhere. The balance is crucial because being in over your head is where the danger comes and not diving in deep enough to actually reap any benefits becomes pointless.
With anything you do in life there are risks involved. Falling in love, taking a new job, buying a new house ect. This newer generation has the entrepreneurial mind set and understands to really succeed one must learn to take and tolerate risks. A few weeks ago at a family party I sat back and listened to my family talk about these young couples in their twenties buying expensive houses, driving nice cars and how they’re all in over their heads and one day all of their nice things will be taken away. I’m sure in some cases this could be true, but I was disappointed to hear this older generation be so assumptive about something extremely negative. To be honest I was surprised people really care or think about what others are doing, but it caused me to really start thinking. This generation works smarter not harder. Our parents worked 9-5 their whole lives while everything passed them by. The way we have learned and evolved from our parents is amazing. We understand this term risk tolerance and that’s how so many younger people are living these amazing lives where they have time to spend with their families creating memories.
Many of my friends have their typical jobs like I do, but that isn’t all we do with our time. I have a friend who recently got his real estate license while working at a completely different sales job. I sell clothes, am learning to edit videos and blog on my time off from my regular job. 2 of my friends own their own companies and are doing so well for themselves, neither of which attended college. I have many friends and siblings who have taken the alternative route and skipped college and do better than a lot of people who did go to college. This is not the case for everyone and I see the benefits a lot of my friends have from going to college but the path is not the same for us all. We all have our hands in many different things investing time and money multiple places and using our risk tolerance to exceed beyond what our parents and grandparents thought was possible.
Sometimes I am embarrassed of the things that come from my generation, but this is not one of them. I know tons of people who have risked it all and chase their dreams and it’s working. They are not afraid, they do not second guess themselves and they will not fail because they can’t. One of these people is the owner of Rev Motoring, where I bought my car. He started from nothing, took on the risk which has only grown more and more as he is succeeding. There have been set backs like anything else but they’ve pushed through everything to get where they are. People only fail when they start to waiver or when they get in over their head. (There is a difference between a set back and true failure). I know people who have done this as well, they get too confident too quickly and lose everything. I cannot stress how important the sweet spot is.
As you probably know, I’ve really taken an interest in videography. I purchased an online workshop course to learn how to edit videos and the influencer who put it on, Indy Blue, explained something that I loved as well. She told a story how she went and purchased a very nice very expensive camera to make her videos. As her video quality and editing skills have continued to get better, she was able to make her money back quickly by creating wedding videos. She now has a camera which is paid for to use for her personal trips and documenting as well as future weddings and work related projects.
You have to do whatever it takes to make it work, for me that means buying editing workshops online and camera gear and lenses and gimbals and spending hours in iMovie and on YouTube.
When buying my car, I drove a crappy car longer than needed because I knew what I wanted. I could afford more than I was driving at the time but I didn’t want something mediocre so I waited a little longer and exercised my risk tolerance and now I have a car that’s nicer than my moms (no offense mom, but you haven’t learned risk tolerance yet). I’m building my credit to be able to buy a house hopefully next year and I’ll be again taking on a risk.
You can take risks too. Whatever it is that you’ve been wanting to do, you can. You just have to want it bad enough. Take out a loan and get working because an idea in your head with no action will never make you money. Creativity fuels the world we live in.