I have never been much of a risk taker, especially when it comes to my money. I mourn every nickle lost playing penny slots on family trips to the Indian casino, and my mind on autopilot naturally does a cost-benefit analysis of purchasing a pound of bananas versus a pound of pears (a pound of pears wins every time, by the way). What can I say? I’m just “grandma” like that.
And when I talk about risk it’s not just the monetary sort. This risk can be a big move, or a job change, or trying something completely new. So when an opportunity presents itself, even though there’s a big part of me that knows there is much to gain by taking a chance, it’s super tough. I decided to leave my steady, 9-5 job with benefits, a job I enjoyed, to take on a contract job that was more along the lines of my long-term goals of being a personal finance professional. It was a big decision for me, and it felt like I was taking a risk. It’s that part of you that is going from what you’re comfortable with, what you know, to a bottom-of-your-stomach feeling of facing the unknown. Here are a few tips on making friends with risk:
1. Remember what you have to gain.
When fear takes over your instincts kick in and you want to cower underneath a rock, it’s difficult to have perspective on why you made the decision in the first place. By reminding yourself what you have to gain, you’ll be able to stick to your decision and work through any rough patches.
2. Find your anchor points.
My former boss introduced this concept to me to explain his foray into starting his own business. Anchor points can be what you perceive as sound and steady. If you’re foraying into freelancing full-time, your anchor points could be a couple of steady clients you can depend on for income. If you’re moving to a big city, it could be a volunteer group you want to check out or maybe fun hiking trails in the area. These anchor points will help build a foundation (and maintain your sanity) as you make your big move.
3. Think: It’s not a leap, it’s a transition.
If you’re like me you might feel momentarily paralyzed when facing fear. Think of your decision as a series of smaller steps rather than leaping into an abyss of the unknown (although it may feel that way). And try your best not to idealize the past and replicate former conditions. For instance, if you are moving to a new place, you might miss your awesome friends, favorite pizza place, that sort of thing. In your new town you may want to have the same friends and hangouts of course, but the pieces may not come together immediately. The thing is that you’ll be working with different puzzle pieces, so expect something different. It may appear imperfect at first, but the unfamiliar can be an exciting thing!
4. Have a backup plan.
Isn’t that a slap in the face to blissful optimism? It certainly is. Being pragmatic will help you get back on your feet in case things don’t work out. Sit down and figure out some options for a Plan B, Plan C, and so forth. Rule of thumb: it never hurts to have an emergency savings and to build out your support network. Also giving yourself a time frame also helps. Do you plan on staying in the new city or work on starting your own business for 1 year, or maybe 2?
Life is filled with uncertainty, and to borrow a cliche, change is the only thing you can bank on. So why not embrace a change that can help you grow in the long run?
