Rich Dad Education – Real Estate Blog

Dedicated to Elevating the Financial Well-Being of People from All Walks of Life

Overcoming Fear of Failure

Fear into actionFear of failure is one of the heaviest weights that often hold us back from success. This common and powerful condition is closely related to fear of criticism and fear of rejection. Truly successful people must find ways to overcome their fear of failure. That doesn’t mean this potentially paralyzing set of fears goes away. It simply means that to obtain ones goals, we must learn to move forward in spite of those fears…

The Law of Feedback states: there is no failure; there is only feedback. All information can be applied to success. Successful people look at mistakes as outcomes or results, not as failure. Unsuccessful people look at mistakes as permanent and personal.

Buckminster Fuller wrote, “Whatever humans have learned had to be learned as a consequence only of trial and error experience. Humans have learned only through their mistakes.”

Many people self-limit. They get in their own way sabotaging potential success BEFORE they’ve even tried… It’s important to realize that in everything we do, there’s always a chance that we’ll fail. Facing that chance, and embracing it, is not only courageous – it also gives us a fuller, more rewarding life.

So let’s explore a few ways to handle those fears and move toward success….

Analyze all potential outcomes – Many people experience fear of failure because they fear the unknown. Remove that fear by considering all of the potential outcomes of your decision. You might use an approach called “Mind Mapping” (google it) to help with your considerations..

Learn to think more positively – Positive thinking is an incredibly powerful way to build self-confidence and neutralize self-sabotage. There is a lot of new research that shows a positive focus and attitude can not only help us be successful, but actually can affect us on a biochemical level, helping us stay healthy AND happy.

Look at the worse-case scenario – In some cases, the worst case scenario may be genuinely disastrous, and it may be perfectly rational to fear failure. In other cases, however, this worst case may actually not be that bad, and recognizing this can help. This may seem counter to the “positive thinking” approach but actually is a way to stay prepared and “try on the shoes” of failure to reduce the anxiety of that potential.

Have a contingency plan – If you’re afraid of failing at something, having a “Plan B” in place can help you feel more confident about moving forward. In real estate we talk about “exit strategies”. We always want to have several possible exit strategies so we can change and adapt as each situation dictates. Feeling locked in to only one approach is what leads to feelings of helplessness and ultimately failure.

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2 responses to “Overcoming Fear of Failure

  1. Luke Fitzpatrick February 20, 2014 at 7:06 am

    Hi Robert,

    I have a fear of not understanding passive income entirely. I know it’s an asset that puts money into your pocket. What I am not sure about it is: If you receive money from a real estate rental, and the money has positive cash flow- would you subtract the mortgage repayment from the rental fee and is that your passive income. I guess, net passive income? Or, is passive income considered the whole amount you are receiving, not including the mortgage repayment?

    It would be great to hear your opinion!

  2. Scott Wilson February 20, 2014 at 3:36 pm

    Hi Luke and I’ve had that question asked many times in the past. Your “passive income” would be your profit after all expenses have been paid. Any taxes. insurance, management, maintinenance, utilities, repairs and yes, the debt service. After everything has been paid, whatever is left is your “passive income.” The IRS defines passive income as only coming from two sources: “rental activity” or “trade or business activities in which you do not materially participate.” This is essentially what we are teaching you through many of the Rich Dad real estate training courses as well as Rich Dads Ca$h Flow game. Have you ever played Luke? Ca$h Flow is very much like an advanced version of monopoly and you need your “passive income” to exceed your expences in order to get out of the “Rat Race.” Just as we all try to do in life, however, most have not been educated on money. This is the main point that Robert drives home in his books and trainings. If you’ve never played Ca$h Flow, this is a great learning tool. If you search out “Meet Up” groups or your local Real Esatate Clubs you should be able to find several monthly games in your area. If not, start one!

    Hope that helps,

    Scott Wilson
    USA Rela Estate Mentor
    Rich Dad Education

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