I.M: Invest Only What You Can Afford To Lose? ... Really?

All in all, it boils down to ONE word that people do not know enough about.

RISK.

I think when people invest, they usually do not calculate the risk they take. With NO knowledge or LITTLE knowledge of the chance they are taking, it does not matter what they can afford to lose because it is as good as gambling.

When a person sets aside a sum of money for something, he should think of
1. What is the potential return at this cost?
2. What is the likelihood of success?

These 2 questions are what constitutes wise decision making.

Successful people are willing to put money into things because they can see the success in it. If there is a high enough chance of success, most people are willing to put more then they can afford to lose because the likelihood for success is high enough for them.

Without thinking of the % success rate, we would all be gambling.

Only one word is important. RISK! you must take a risk in order to achieve what you really want.

Some of us have different definitions of "afford."

Working on my IM business has cost me my house, my car, my wife, my kids, my cats... pretty much everything.

Did I want to lose that stuff?

No.

Could I afford to lose it?

Well, yeah. I'm still here. Still alive. Still moving forward. Kind of slowly, at the moment.

What's lost is lost. Playing coulda-shoulda-woulda over it is pointless and gets in the way of pursuing what you lost it for in the first place.

Exactly, CDarklock! There is no point at all trying to control the ideas of those around you, including family members. In fact, the time and effort spent trying to gain control is better spent trying to build another product or write another article or blog post.

I know that sounds very tired, but I needed to write it for myself this morning. Thanks for giving me the opportunity to set myself straight.

No, no. I'm simply saying that there are just so many hours in the day and spending them trying to control family members' ideas are not, perhaps, the most productive way to spend them.

That's all.

Sometimes things don't work out with families no matter how much time is spent trying to convince them of something.

I've lost it all in a relationship, too - and didn't give a rat about it because the person I was with wanted me to make lots of money for HIM to spend, but he was anything but supportive in my efforts to try to do so. When you spend your time answering questions about what THEY are going to get out of your business, then throw fits every time you try to focus on it, it makes it real easy to decide where the best risks lie.

I've been willing to take the risk in the past but couldn't find someone to lend to me to take the risk. Back in the days, nobody lent money to the "little woman" of the house. I had an idea for tapes like Pillades a LONG time before they came out. I tried to get a few loans and was told to have my "husband" finance me. I wasn't married and when I made the point so then I was told that I should be. I was called "cute" by one man. Years later pillades came out and made a killing. Wonder how "cute" the dickhead thought I was then? Oh-- my point.........

It doesn't always matter what YOU think the risk is. If you have to finance your idea, it's the financier that has to think the risk is low. That's not easy to do any more. Small Business Association help? In some areas you have to be a pal of the guys running the show or they won't give you the time of day even to discuss proper steps you have to take to get financing help because they have their earmarks for the cash already lined up.

For those just starting that have even a terrific idea, they have to start from scratch most of the time whether there is low or high risk involved because there are no financing resources for them. Starting a business a whole new game again. You either have the cash in hand to risk, or you aren't going to get your chance.

If you have a supportive spouse who's willing to foot with you through getting the small stuff in to put toward getting the big stuff, you can probably get through it - but if you don't, you can be ruined real fast.

Risk, to me, is just becoming a more and more moot issue. At this point in the economy it's more of a how much time and cunning do you have than how much risk will you take.

Reinvest in your business with the profits you've earned. Maybe a service initially could help in making the initial investment needed for your service. A service in hand will always help you to get some quick cash..

Thanks.

What do any of us really have to lose?

How many of us had crappy jobs with no promise of retirement?

or

Those like myself; who sustained an honest small business for years that abruptly died because a shift in an economic algorithm damned our efforts to near death, and left 20 years of work rendered useless?

Better still, how many of us have awaken to the realization; there is NO security in working for someone else, at any level?

I have 'risked' everything, and will sell, sacrifice, and replace every single meaningless thing I own (less my laptop and internet connection) to attain the freedom to work from anywhere I choose with a dream and a cheap $300 laptop.

Yes, it takes work, effort, discipline, and a die hard will to succeed.

Currently, I am 1 step from from being homeless, yet I am sober, possess 6 (offline) trades of which I have all but mastered, and find that competing for a $10 per hour job is NOT an option, nor even a solution to anything less than surviving another day.

Many of us long to live, while waiting to die. I choose to risk death, in order to live, rather than just survive!

We are programmed to believe merely existing is living...BS!

Sure, get a job, work your @$$ off like I did for 20 years believing that lie!

If your going to amount to anything, you better be ready to risk it all, and change hats on a dime, because at the end of the day your boss don't care about you, he cares about making his mortgage and car payments.

I have 3 demanding teenagers, and a women (my partner) of 20 years nagging the life out of me, because they cannot "SEE" beyond the typical antics of controlled reform, sophisticated slavery, and the fact; you will NEVER be FREE working for someone else!

*Not to be confused with that by serving others, you are indeed still obligated to stand accountable for the results, and in essence working to assist others in finding their desires, wants, needs, or version of freedom.

Am I gambling?

You're damn right I am!

Going out on a Friday night is a gamble that some drunken idiot might side-swipe your family vehicle. Singing in the rain can lead to being struck by lightning!

Point being, don't let the fear of success stop you!

I did, and it's my only true regret, yet it was a humility no teacher can teach.

Probability and the mathematical equivalent only applies to those who take action. The numeric value is not my focus, the literal interpretation of being free to live anywhere I want, work as much or as little as I choose, to sleep in, wake to a cheap laptop and a cup of coffee is the end goal.

If my kids, my wife, my friends, my old boss, or God himself can fault me for pursuing my dream to be self-sufficient, then that's their choice, and it will not stop my desire to climb this mountain, even if it feels I am going it alone!

People will NOT believe until they see results... like money. That binds and blinds people to quit before they even start the climb. No wonder over 90% of internet marketers fail, they won't sacrifice anything, less they get instant results.... yet they'll show up for a 9-5 job that holds 1/100th of the potential their laptop and mind holds!

Funny thing being, I am doing this in sacrifice for my family, in order to teach them by example that if you can believe it, you can achieve it.

While I may be neglecting their mentality of play now, work later, I know; if I work now, I can play as much as I want later... or I'll die trying!

I am ALL-IN... this is it, DO or DIE time. And that time is now!

Meanwhile, I am being drug out the door to entertain the kids begging me to go to Wet-N-Wild for a few hours, and honestly, they have to pry me off this damn computer to say WTF, why not?

And I feel guilty, as I feel I have work to do first!

Find the balance and ride it!

There's a positive and a negative to every living thing... I stand in the know; until you can stand with a clear conscience, you'll fall for anything!

I don't know about you... but I've fallen enough to know I saw the path to the top, and rather than exhaust myself with fear, I'm climbing that bitch!...bloody, broken, scars and all...baby!

See You at the Top!

All the Best,

Art

Ah - well all this gives me an idea. Maybe I'll go buy property with cabins on it and develop an IMer's commune where everyone can pitch in for the cost of the property and utilites to keep everyone's costs low so they can save the rest for investment. Anyone want to back that one? It's low risk. LMAO.

I think if a person has dug a hole so deep that they got themselves into this position then they need to focus on building the skillset of cashflow management.

Becuase no matter what business they start up, how potentially successful that business can be, if they don't have the skill on how to manage the cashflow they will just end up digging themselves into a deeper hole.

i think that refinancing the equity in your home is not the smartest idea, depending on what you use that money for, of course.

And I think that getting a cash advance through a credit card is one of the worst ideas, putting the person at risk of astronimical interest rates.

Learning to manage your cashflow, making sure we are using the cash to make more cash, whether it is cash from your current job, business, or internet marketing adventure is a core skill that all of us need to apply if we are going to succeed.

Great thread. As a newbie, I've begun to fall into the bad habit of "investing" too much before I make any real money--for example, in WSOs and information products. I now have a library of information in my head that I've gathered over the last couple of years, but unless I start acting on it, I'll continue to think I need one more piece of essential info--and deplete my bank account in the process.

I do believe that, in any business, even in IM, some investment needs to be made and risk needs to be taken. Or else it's not "business" at all. But for me, it's time to stop risking so much and start reaping some rewards :-)