Landing dream six figure jobs seems all the rage these days. The problem is in many situations a six figure job is not enough.
According to BankRate.com, a six figure income is no longer the premier status it used to be. There are a number of reasons for this including cost of living increases and inflation. The bottom line is, if you’re looking for financial freedom, you’ll need to start using 7 figures thinking.
But there’s actually something that has always perplexed me. Most people are hesitant to use 7 figures thinking. And even though it takes a lot of time, effort, and experience to land six figures jobs, they won’t make the move to think bigger.
Get six figure jobs; don’t build a business for yourself. Even if that business procedures 7 figures or more.
Why is that? It’s risk aversion.
Six Figure Jobs Require Upleveling Your Skills
But the skill of facing risk and heading into it intelligently – risk management – is expected in six figures jobs. If you’re managing a budget or team, you will be expected to handle risk.
But that same skill can actually be applied to entrepreneurial efforts. Even earning 7 figures yourself.
People often don’t take the opportunity to jump in and gather the resources to set up their game. You know I get it when something’s too risky, but when there’s actually a reasonable opportunity to get a 10 or 20 times return on their investment and people walk away, I always wonder why.
So I started to think back to my mathematical finance days. There’s actually a concept called utility theory that explains why people do this around money.
Let me give you an example. Let’s say we make a bet, okay? I flip a coin and if it comes up heads, you double your entire life savings plus $1. But if it comes up tails you lose everything. Money, house, retirement, everything. Are you going to play that game? You’re probably not, right? If you’re like most people, you’re going to say no. And that’s even when statistically you end up better off playing the game.
You see, you’re more likely to come out ahead in this game. But you’re still afraid to play. And that fear will stop you from landing six figure jobs.
So Why Do We Say No?
Let me reduce it down to something that’s a little bit easier and explain it this way. We’re more scared of loss than we are excited about gains. How scared you are and at what level is what makes utility theory personal to you. Every individual has their own utility theory or fear.
You can think of it as a fear of loss knob that we kind of control on our own. So when you’re trying to improve your financial position and you want to spend $10,000 to earn $100,000 you have the question to ask yourself, which is, am I more scared of losing the $10,000 than I am excited about earning the $100,000?
And everyone has a fear of loss. In six figure jobs, you will be expected to take risks. And those risks may involve loses – your company or even you personally. Thus, this is an important concept.
We look at the chances of success to make a decision. If I’m 80% confident that this is going to work, then I’m willing to chance the loss. So if you have a lot of money, that fear of loss goes down. That’s because utility theory says that your satisfaction is actually a function of your wealth.
Now, you can argue that point if you want, but the idea is that a rich person is more likely to take the chance of losing a certain sum of money than a poor person is.
Six Figure Jobs Require an Entrepreneurial Mindset
So it comes down to this: if you want to go after six figure jobs, you need risk management – or a healthy relationship with risk.
You need to establish the mindset that excitement over gains is more important than fear of loss. That’s a 7 figures mindset.
For a great interview on the entrepreneurial mindset, check out this interview with Daniel DiPiazza.
And if you can establish that 7 figures mindset, then you’ve conquered one of the biggest fears of becoming an entrepreneur. So leave the six figure jobs behind.
Are you going to act out of fear of loss or are you gonna act out of anticipation of success? Only you can choose that. The entrepreneurial mindset chooses success. That 7 figures thinking.
You have to think about where that fear of loss knob is dialed in your own life and you know, make a choice for yourself about whether or not you’re going to act as if you’re successful.
It turns out there’s a really rational reason for this behavior. And when there’s a rational reason, that means we can control it. So you go ahead and control it as you make the decision about going after six figure jobs. What do you want and how will you achieve it?
Change your perspective on risk. And change your financial position forever. Make it happen.