7 ms·

I keep thinking about why I am not taking as much risks as I should and PG's poverty factor could be the issue. I am not poor and have a family with a bit of s

I keep thinking about why I am not taking as much risks as I should and PG's poverty factor could be the issue. I am not poor and have a family with a bit of savings cushion. So does that mean I need to freaking blow my savings before I start giving approval to myself to start taking some big bets..

thaumasiotes 12y ago
[Malcom McLean's] net worth in 1955 was $25 million -- the equivalent of $180 million in 2004 dollars. Asked later whether he had considered ways to shelter some of his wealth from the risks of entering the maritime business, his answer was an unequivocal "No." McLean explained: "You've got to be totally committed." ( The Box, http://www.amazon.com/dp/0691136408/ http://www.amazon.com/dp/0691136408/ )
wpietri 12y ago
Probably not. I think panicky entrepreneurs aren't particularly good either. The worst case for most SV entrepreneurs is "have to go get a job" or "have to move in with family or friends for a while". When you're young and single, that's an ok outcome, especially since you have a level of control that matches your level of risk. It's a very different calculus with a spouse and kids. There if you blow up, you don't want your family to end up homeless. And you don't want your spouse worrying about ending up homeless, either. Since your spouse doesn't have control over the business outcomes, it can be much more stressful. I'd encourage you to jointly split your cushion into "can gamble with" and "won't gamble with". Then if you want to do a startup (or join something early enough that they can't pay you properly) the deal you make is that once you've burned through the ok-to-gamble money, you go back and get a real job. I promise you that watching your bank balance tick down is going to create significant motivation, especially if your #1 investor (that is, your spouse) is getting weekly status reports on the business progress.
SyneRyder 12y ago
I assume your last sentence is facetious, but in case it isn't: Do Not Do This. Bad idea. People suggest it will light a fire under you and be a motivator - but it can also paralyze you with anxiety so that you end up getting nothing done, like the deer frozen with fear in the headlights. It's a horrible place to be, and there's many business problems that can be rapidly solved with cash. (eg Don't waste hours and hours of labour if you can just buy an off-the-shelf software package to do the job faster & more cost-effectively.) Don't take risks, manage risk.
a3n 12y ago
Kids come first. If your kids needs and future are taken care of and reasonably secure, then do what you want. If not, do what you must.
trevyn 12y ago
You know, I did exactly this. Best decision ever.

thaumasiotes 12y ago

[Malcom McLean's] net worth in 1955 was $25 million -- the equivalent of $180 million in 2004 dollars. Asked later whether he had considered ways to shelter some of his wealth from the risks of entering the maritime business, his answer was an unequivocal "No." McLean explained: "You've got to be totally committed." ( The Box, http://www.amazon.com/dp/0691136408/ http://www.amazon.com/dp/0691136408/ )

wpietri 12y ago

Probably not. I think panicky entrepreneurs aren't particularly good either. The worst case for most SV entrepreneurs is "have to go get a job" or "have to move in with family or friends for a while". When you're young and single, that's an ok outcome, especially since you have a level of control that matches your level of risk. It's a very different calculus with a spouse and kids. There if you blow up, you don't want your family to end up homeless. And you don't want your spouse worrying about ending up homeless, either. Since your spouse doesn't have control over the business outcomes, it can be much more stressful. I'd encourage you to jointly split your cushion into "can gamble with" and "won't gamble with". Then if you want to do a startup (or join something early enough that they can't pay you properly) the deal you make is that once you've burned through the ok-to-gamble money, you go back and get a real job. I promise you that watching your bank balance tick down is going to create significant motivation, especially if your #1 investor (that is, your spouse) is getting weekly status reports on the business progress.

SyneRyder 12y ago

I assume your last sentence is facetious, but in case it isn't: Do Not Do This. Bad idea. People suggest it will light a fire under you and be a motivator - but it can also paralyze you with anxiety so that you end up getting nothing done, like the deer frozen with fear in the headlights. It's a horrible place to be, and there's many business problems that can be rapidly solved with cash. (eg Don't waste hours and hours of labour if you can just buy an off-the-shelf software package to do the job faster & more cost-effectively.) Don't take risks, manage risk.

a3n 12y ago

Kids come first. If your kids needs and future are taken care of and reasonably secure, then do what you want. If not, do what you must.

trevyn 12y ago

You know, I did exactly this. Best decision ever.