Everyone has their own personal “choke point” when it comes to money. The reality of this is demonstrated with the condition of our personal finances. Or maybe another way of putting it is that our financial condition is a direct reflection of our financial fears. I never gave this much thought in the past when my financial condition was extremely lean. I always said; “give me a million dollars and just see what I can do!” Well, honestly, there plenty of evidence of what happens when someone is given a million dollars (or more). It tends to destroy them. This is true for professional athletes, entertainers, lottery winners and even those who inherit fortunes who have not been trained to handle it.
As much as we would like to think we can handle it, we have to admit that our individual ability to handle greater finances is completely contingent upon our willingness to step out of our comfort zone and begin operating there! That requires an ever-increasing journey into a larger financial arena.
My investing career began with a $10,000 deal which took almost everything in me both financially and emotionally. this was my first “choke point” After swallowing that first deal, I was able to easily follow-up with a $25,000 deal, then a $65,000 deal. Once comfortable in this range, my next choke point came when I was looking at my first $250,000 deal. I was completely surprised at how anxious I became again. Its one thing to say “I’m ready” for the big money. It’s another thing to actually step up to that new level of commitment, risk and responsibility. I was quite proud of pushing through that $250,000 “choke point” barrier.
I spent about 4 years in my new comfort zone thinking I was now over my fears of bigger deals. That was at least until a friend approached me with a $12 million dollar deal. I really did choke on that one. The funny thing was that it financially supported itself just fine. Obviously I was the limiting factor in that deal. Still, it taught me a lesson that I was still controlled by my sense of uncertainty about my own abilities. Since then, I’ve breathed deeply and mustered up the courage to tackle a $2 million deal. As of publishing this post, it is not finalized yet, but it’s getting close.
Here’s my point. As a society, we are conditioned to have no problem with consumer debt. ie; cars, boats, 4 wheelers, furniture, and all the stuff we use our credit cards on that are not investments. When it comes to creating financially sound investments, we tend to choke before leaving the starting gate. We say we could wisely handle wealth if it were handed to us, but can’t really seem to even establish a consistent savings plan with a small fraction of that amount. I suppose it has to do with the “perceived risk” involved with wealth creation.
The dollar value of your financial choke point is determined by the exact amount of money you have ever invested at one time, and are willing to do again. For some, that amount is zero.
Go to www.millionaireondeck.com for some free tips on wealth creation.