A recent study said that 9 out of every 10 Start Up’s fail – and that’s ok. It’s part of the journey and an opportunity to learn and grow; something that Keith Cunningham has experienced first-hand. For those that don’t know Keith, you should check him out. By the age of 40, Keith Cunningham had made and lost $100 million. Keith is now a Global Authority on Business Mastery and one of the best public speaker I have ever witnessed.
I was lucky enough to meet him recently and talk through his experience. He said it’s taught him the importance of wealth management and, because of this, he recommends a specific exercise on it. It involves working out the money you have coming in and subtracting your outgoings. If it’s below a certain percentage you need to make a change.
That night, I went home, did the exercise and came to the conclusion I needed to sell my second car. The main reasons for this were:
· The insurance had increased by 40%
· Tax was high
· It wasn’t used regularly (I cycle to work)
· I live in an area with great public transport links
But my haste to get rid of the car led to me selling it for 9k less than it’s worth. Of course, this isn’t a loss on the same scale as Keith Cunningham’s – but it was a huge loss for me. When I told people, they’d shake their heads and I’d feel embarrassed… foolish, even.
A year ago, I wouldn’t have told anyone – now, I wear this experience as a badge of honour.
I don’t have to pay tax on my car anymore. I don’t have to take it for services or an NCT. I don’t have to keep topping it up with diesel. And I don’t have to worry about it being damaged or stolen. In the long run, I’ll have saved money.
When I arrive home on my bicycle, I’m no longer filled with resentment that I’m spending money on something that provides me with little value.
So what can you take away from the mistakes Keith and I have made..? Well, hopefully you’ve learned that making mistakes is inevitable and sometimes the project you’re working on will fail. But, more notably, it’s important to remember that failing is ok. You can learn from it so you don’t make the same mistake twice.
Have you ever made a decision that cost you a lot but was worthwhile now?
What do you know now that you wish you knew then?