I have what I consider a healthy, yet somewhat risky relationship with money. I would consider myself far more risk tolerant than other people I know. I do not have fear of losing money or not having enough money.
At one point in my career, every single credit card was maxed out, my credit score dipped to below 600 and I paid myself exactly what I needed to make sure that my mortgage payment would clear my account.
One method that I use to calm myself down in difficult situations is to force myself to really think about the absolute worst outcome to a particular situation or decision. I will get myself to a really dark place – they take our house, our cars, the businesses are gone, etc. etc. And I stay in that place in my head until I feel happy again. I imagine being in that place and hugging my children, kissing my husband, having dinner with my parents. I also imagine re-building… if you’re like me, there might be a small part of you that gets a little excited about having to build it all again from scratch.
“If money can fix it, it’s not a real problem” – My mom
If you’re in business for yourself, or thinking about starting, I would highly recommend using this technique. Get yourself down to the absolute worst case-scenario based on the risk you’re about to take. If you can’t get yourself comfortable there, I would suggest re-thinking the decision. It’s okay to step back and invest less, or invest slower. It’s okay to walk before we run.
My tolerance for risk has changed over the years. Now that I have children, the stakes are higher, but so are the rewards.
Like I said, it’s complicated.