I think it’s finally time we move on from California licensure information and move back into some financial discussions. So let’s get started.
I can’t speak for everyone, but I know that for myself I am constantly throwing around the ideas of retiring early, working part time, or pursuing other side hustles or passions outside of the current work I do in healthcare.
You may not be throwing around these ideas yourselves but maybe you are thinking about taking on a house flip, taking a sabbatical from work to travel, or buying a new, expensive piece of technology to potentially advance your career or business.
All of these decisions can be a big financial risk. Not always, but I would say that for most people these ideas could be a little scary to think about. Am I going to lose my job? Am I going to run out of money? Am I going to put myself or my family in a worse situation?
So to answer these questions above, I pose to you another question.
Is it easier to jump from sand or stone?
When we jump from sand, we jump from an often uneven surface that unexpectedly can give way causing us to lose our balance or in some cases fall. Either way, it makes jumping to where we want to, much more difficult. When we try to jump from sand, we can oftentimes end up even lower than where we first started.
However, when we jump from stone. We often get a solid, flat surface on which to get our best jump from. It doesn’t necessarily mean that we are going to be able to jump to where we want to get to, but in the worst case scenario we end up back where we started.
So how does this relate to finances?
If we look at the surface we are attempting to jump off of as our financial security, and the jump itself as the risk we are taking on, you can see right away that we would rather jump from the stone.
When you jump from a strong financial position (stone), you are able to take your best jump towards succeeding. And if you miss your jump, you are often going to land in a much similar financial position than when you first started. It may hurt a little bit or you may get discouraged, but you are quickly able to recover, train, and practice before you jump again.
However, when you jump from a weak financial position (sand), you can still take the jump or risk, but you have a much less likely chance of reaching the same position as the person who jumped from stone. This doesn’t mean that you can’t reach your goals/dreams or that you can’t outjump the person jumping from stone, but it does significantly lower your odds of making it.
The problem is, is that when the person jumping for sand misses, they often land in a much worse position. They may be much deeper in the sand now, much deeper in financial hardship. They can attempt to jump again but it will be even more challenging than their first jump. The more they miss, the more they keep sinking.
And when you are sinking in quicksand, your focus begins to focus more on survival than on reaching your previously stated dreams. It puts stress on you and stress on your relationships to the point that it can feel hopeless.
This post isn’t to discredit the people who have jumped from sand and made it. It’s simply to point out the fact that those situations aren’t the norm. It’s the people routinely jumping from stone that are the norm.
So why does taking a risk from financial security lead to better results?
Alright, so that’s enough analogies, let’s break this down in real life.
When we make a decision from a place of financial security, we are immediately able to attack a decision with confidence.
There is less fear of “If this doesn’t work, I’m _____” . Insert your biggest fear. When we have financial security, we are okay if we are without work for a few months, we are okay if our boss fires us, we are okay if we lose money.
Imagine walking into your boss’s office and asking to take a sabbatical to backpack through Europe, something you have wanted to do your whole life. You have the finances for the trip planned out, you have your itinerary ready, you just need to ask your boss.
However, in scenario 1, when you are asking, you realize that if you don’t have this job when you return from this trip, you are screwed. You won’t be able to make ends meet, you need this job. This is a big risk for you even bringing this conversation up with your boss.
Now in scenario 2, when you are asking, you realize that in reality, you are financially secure. You don’t need this job, you’d like it, but you don’t need it. It would be inconvenient to not have it when you returned from your trip, but you’d have money to take the time to find something else if need be when you returned. You aren’t getting any younger you know.
Imagine the confidence you have going into that discussion if you are the person in scenario 2 vs scenario 1. In reality, it could be the exact conversation but in scenario 2, you don’t have nearly the fear. When your boss knows that they need you more than you need them, they tend to be much more accommodating.
The same is true if you are pursuing a new career, side hustle, or even retirement. You can give it a full, maximum effort attempt without the fear of setting back your financial future if it doesn’t work out.
Yes, it may cost you some money, but you created a solid financial position to absorb this loss without you even realizing it much. We would all love it if every risk we took turned into success, but sadly this isn’t the reality.
If it doesn’t work out, a person jumping from a place of financial stability has the ability to regroup fairly unscathed. They can return to their previous job, find a new job, or regroup for another attempt. They don’t fear falling into the hypothetical financial quicksand that can drag them under.
Conclusion
Creating financial stability isn’t easy. Not at all, but if you can focus on doing so first, it makes your jump into other things that much easier. Don’t be the person jumping from sand, be the person jumping from stone.
When we jump from stone, we have safety, and are much more likely to achieve our dreams and goals in life
