He who has never been afraid of losing money can cast the first stone?. It’s obvious that nobody likes losing money; we care for it as if it were our most precious asset, but we should understand on how that fear can affect our attitude.
The fear of losing money is inevitable (for both poor and rich folks); It is not a fear of cowards, but a necessary fear. The bottom line is not about fear itself, what’s really interesting is how that fear affects us emotionally; in other words, how we manage our money in spite of that fear. On occasions, people fear so much the possibility of losing money, they won’t take any kind of risks, instead they will play it safe and end up losing.
How to manage the perception of fear, the sensation of lost and the experience of failure?
One of the best tricks to overcome your fear of losing, is redefining the concept of failure. What is the meaning of failure for you? You can see it as a tragedy or as a learning experience; You can understand it as a sign to let your plans succeed, or you can view it as an inspiration to go even beyond your desires. Possibly you see failure as a punishment for your ambition, or perhaps you prefer to understand it as a new opportunity; You can also see it as a defeat, while others see it as a sign to start over but more experienced.
Some people get weakened in face of failure, while others grow stronger. How and why does this happen? Basically, the difference won’t be found on objective matters, such as academic degrees, where they live, their age, or their wealth. The difference between one way of seeing the consequences of failure and the other lays on the attitude, and your attitude depends on what you believe in.
Concretely speaking, the fear of losing money is rooted in the fear of failure, and one of the practical ways recommended to overcome the fear of losing money is to assume that no one will take it out of your hands (unless you let them); money also won’t disappear by itself (unless you throw it out the window and the wind carries it away). In any case, you are the great money manager and you know there is no success without taking risks and learning. The more you acquire skills to manage your money, the less aversion to failure you’ll have, and therefore you’ll have less concerns at the possibility of losing money. Remember that no one has become rich without losing some money.
At this point it is well worth extracting a powerful phrase from the book “Rich Dad Poor Dad” whose author, Robert Kiyosaki, says bluntly that the losers avoid failure, while failure turns losers into winners. So you shouldn’t panic in the face of failure because your natural response to that fear will be to do nothing, and you shouldn’t stop playing in fear of losing. Also don’t get compliant for playing it safe because, even when winning, you would not have learned much. Do not forget that you have the sufficient capacity to win, and if you end up losing money, do not worry because you will always have the tools and skills to find new opportunities to recover and recapitalize.
Our final recommendation: don’t be afraid of losing money and never think in terms of poverty, because that is always followed by a large army of burdens, fears and apprehensions.