Question from a Wealth Club member:
How do you develop the "abundance" mentality if you tend to be more risk averse?
Answer: The first thing to do is to distinguish abundance from risk; because abundance is there whether you take any risk or not.
I think risk aversion has a lot more to do with fear than it has to do about risk - and this is problematic because fear inhibits action, which translates to a lack of results; which yields anxiety that exacerbates the initial fear. That's an incredibly vicious cycle.
So here's what I propose...
First, realize that there's a difference between being fearful and being prudent. It's actually totally possible to take risks while being prudent. Most of the time we fear things that never actually happen.
As an Angel Investor, I'm participating in ventures that have a fairly low probability of success as an asset class, BUT, I also use a due diligence checklist that is incredibly effective at finding unicorns. THAT is prudence.
Finally, we will only get more comfortable taking risks by actually taking risks. So one way to do that is to start very small and work from there.
This aligns beautifully with the Investor Maturity Model, and as your skills develop with time, so will your risk-taking abilities.
J. Patrick Nichols