Fire the original risk management issue? February 25, 2009Posted by shaferfinancial in Finance.
Tags: experience makes the teacher, fire as risk management, fire management, personal experience
Many folks believe the separation line between us and our animal ancestors was the use of fire. The idea is that the creation, use and management of fire is what really separates us from the animals. Last night I took Garrett to learn about primitive fires at Boyd Hill near our home. It was a great evening finished off by smores of course! Garrett has had some intense lessons about respecting fire which now makes him very careful around fire. This is a necessity because of the wood burning stove we have in New Hampshire. But now we are starting to teach him how to properly manage fire.
As the instructor, Lynn, talked about fire, it occurred to me that what makes humans who they are is that we can manage risks in our mind. Without that ability we could have never learned enough about fire to use it to cook food, keep us warm, etc. Part of the process of modernity is that we no longer face threats, or at least that is what we think. So we forget that part of ourselves that is more concerned with managing risk, than avoiding risk.
I am doing some serious personal psychological work in order to live with the risk I have intentionally created. December was a tough month as everything in my financial life seemed to be cratering around me. I knew that this set of circumstances is a test on my ability to withstand risk. But I had a well thought out plan and was determined to see it through. I (like the country) am not out of the woods yet, but I have been managing the fire in my life. This, once in a generation test, has pushed many of us to the brink. We need now more than ever to recall our heredity, push our minds to that place where we learned to live with the risk of living and manage the risk as best we can. To do otherwise is something less than living.
If you are suffering from massive 401K losses, or lost your job, or your home, have seen your retirement dreams burn up, or are just trying to hang on, please remember we are designed for these types of situations. Yes, we have forgotten this, but it still resides in the deep recesses of our mind.
And as I reminded you yesterday, the recession will not last forever. We will emerge stronger. The Shafer Wealth Academy is all about emerging smarter and more emotionally attuned to the reality of our lives! No one escapes this reality. Believe me, going through this has made me a much better teacher. Experience is truly important in this matter!
Yours in wealth creation,