The key concept here is diversification - having more than one source of income. The more of these you have - the less you are affected by risks and market vola

The key concept here is diversification - having more than one source of income. The more of these you have - the less you are affected by risks and market volatility. You have much lower loss-aversion, you could even afford to fail-fast, abandon and start again or just delegate. The simplest example is a landlord having a running businesses in his basements instead of just collecting a rent. These businesses could be seasonal, habit/passion-driven, barely profitable, etc. Btw, a rich family doesn't mean lots-of-money-in-the-bank, it usually means many diversified sources of income.