Many people don’t understand the difference between taking risks and gambling. Here is the definition of gambling:
v. 1. To take risky action with the hope of a desired result despite very little chance of success. 2. The risking of money or other items of material value on an event, with an uncertain outcome with the primary intent of winning additional money and or goods of material value.
For us, we don’t gamble. However, we do take a lot of risks. The difference is that when gambling, you have a high chance of losing, whereas with a calculated risk, you have a high chance of winning!
A calculated risk is where you give thoughtful consideration to the risk and for that which the potential costs and potential benefits have been weighed and considered.
Add to the mix one’s level of trust… we take risks and we trust. Many people gamble and have no trust… go figure!
With the world embroiled in a global recession for the first time since the 1940’s, a lot of what we had accepted as “the way things are” has been turned upside down. Sure, there have been recessions in most regions, however it has been over 60 years since we had a global recession.
One thing a lot of people had taken for granted was that we could keep on expanding forever. This caused a bubble from over expansion when prices lost touch with fundamentals and in the end, turned out to be unsustainable.
Greed drove markets to higher and higher levels, and now that things have crashed back to earth, fear has driven (and continues to drive) markets lower and lower to such a level that we have, once again, lost touch with the fundamentals.
As you can see, we have swung between these two extremes that are driven by emotions at opposite ends of the spectrum.
This graph is very interesting (from The New York Times). It shows the price-to-earnings ratio and gives us hope for the future as well as some relief that the bottom is not far away – if not here already. On the other hand, you can see that there is a possibility we will get to the lows of the 20’s, 30’s and 80’s – which means more pain on the way.
April 26, 2017 > Update > Wow, watching this video again eight years later is an eye-opener. The US Federal debt has climbed to almost $20 Trillion. Clearly, the core issue of too high spending and too low income has not been solved.
Government finances operate on the same principles as business and personal finances, with the exception that we don’t work for the stockholders, and don’t serve the interests of all citizens. It is possible to predict the future by looking to the past. get ready for another crash. Check out the US Debt Clock > here.
March 17, 2009 > This video is very well done. I.O.U.S.A. boldly examines the rapidly growing national debt and its consequences for the United States and its citizens. The graphics are awesome and the content is very well presented. The full version is available (highly recommended) on DVD from PBS.
Many people have their self-worth hardwired to their net-worth. I referred to this phenomenon in Towers of Glass, Feet of Clay. Perhaps this is the single biggest reason it is a good idea to build a glass tower around yourself in the first place. So, what happens when the waves of impact touch your reality and this tower is about to blow apart from the tension, shattering everything within its shadow?
Many of us would agree that our results in life are created by our actions, and our actions are preceded by thoughts, and our thoughts are created by our feelings. The challenge is that most of us have thoughts and feelings that are hidden deep in the subconscious mind – out of our conscious awareness. The easiest way to see what is in our subconscious is to look at our results. Our results will reflect the inner workings of our mind.
Over a lifetime, we hear thousands of comments about money and observe the money behavior of the people closest to us: our parents, relatives, teachers, friends and colleagues. Many of these comments reinforce patterns of thinking and beliefs that over time become buried in our subconscious. Our day-to-day experiences confirm and validate that these thoughts and beliefs are true and accurate.
In order to change the relationship we have with money, we have to reprogram our subconscious mind. This requires replacing negative thoughts and feelings that are inaccurate with positive thoughts and feelings that give us the results we want.
Most people would like to increase their income, however negative thoughts about what they have to do to make more money often counters their intention. For example, if you have the belief that you have to be dishonest to make money – and you see yourself as an honest person – you will avoid making lots of money so you don’t compromise your status as an honest person. However, this belief is not true. You can make as much money as you want through honest means and all the while maintain the highest levels of honesty and integrity.
Making a list of your most negative thoughts about money will help you to bring these deep-seated thoughts and feelings to the surface so you can view them and choose a replacement thought and feeling.
Many years ago, I sat down with a note pad and created two columns. In the left column, I listed my most negative thoughts about money. In the right hand column, I wrote a positive affirmation that would reprogram the negative into the positive.
This process totally transformed my relationship to money. I highly recommend that you make your own list and pay attention to the thoughts that come up as you read the list below. Feel free to use any of these and add them to your list.
With the financial crisis deepening, many of our worst fears are being realized. With the Waves of Impact continuing to wash over us, we are being confronted by financial losses on a never-before-seen scale. Entire industries are at risk of being wiped out. Previously invulnerable mega-corporations are being brought to their knees. Hidden weaknesses are being exposed.
As individuals, we are being faced with the complete loss or at least dramatic reduction in the value of our retirement accounts. It can feel like we are being confronted on all sides. How do we cope with the uncertainty?
I have been reflecting further about the “financial crisis,” and recalling a book I read in 1982 called Towers of Gold: Feet of Clay – the Canadian Banks, by Walter Stewart.
In a conversation about this with my colleagues I happened to say towers of glass, and perhaps 27 years later, Glass is more descriptive. In 1982, I was working in the oil and gas industry in Canada and this book was written about the Banking Industry, the mortgage crisis and the oil prices. These themes are again relevant in 2009.
Nearly everyone is feeling the financial crisis, not all at once, but rather in waves. These waves or fluctuations go in and out like the ocean. Each one brings more insight, more truth, more change, and with each contact, ever greater connections that impact our reality. The illusions and ideas that we took for granted are eroding.