The truly successful, the multi-millionaires and billionaires, achieved their success by learning from their failures. Most importantly these failures were steppingstones and guides of what not to repeat in the future.
No one wants to relive their mistakes and face defeat – especially when it hits them in the pocket. Financial failure can be the most detrimental and psychologically trying defeat when on your journey to success. Financial failure can set you back and leave you feeling gutted.
Learning from Past Financial Defeat
It’s important to look at your failures like failed experiments rather than personal failures. You are on a journey to an ultimate goal. You have a destination, and your failure is a detour. The experiment was a failure. Time to look at the failure and determine what went wrong and what can be learned from it. From this point, you can then move forward with wisdom and a clear head.
Every success story begins with stories of bad business decisions or wrong partners, or bad investments. What you make of those failures is what determines whether or not they define you.
There are some definite steps that you use to help you reflect on your past failures and continue your journey to success.
- Review your end goal:Review what your goal is – your destination should be clear and your path fairly defined.
- Identify what went wrong: Make a list: Not all failure is equal – you need to determine what exactly went wrong and how much it changes the end goal. How does it affect your current situation? Be detailed in your descriptions and note how it may affect your near future as well. What did you expect to happen when you began the endeavor? How did it vary from what you expected?
- What is learned:Try to look at both singular errors in judgment as well as patterns of miscalculations. Do you recognize patterns you may fall into from your past? Is there something unique to this circumstance? Try to look from every angle and list them so you can be sure not to miss an opportunity to see a learning opportunity.
A powerful lesson is that failure is inevitable, and it’s learning from your failure that will ensure that you reach greater success.
Just don’t swing too far the other way to avoid risk. Try to maintain a balance and keep your goal in mind when determining financial risk. Without taking some risks, you may not reach certain opportunities.