“But you just got lucky!”
These are five words nobody wants to hear after they achieve something. After all, you worked hard on this thing! You had clever ideas that contributed to the ultimate success, and you lost sleep in making sure the event ran flawlessly. Sure, you were given an opportunity, but not everyone would have done what you did with such an opportunity.
“Equality of opportunity” is an incredibly noble idea, and probably a reasonable ultimate goal for society. It’s definitely not here right now, as I stressed in winning the uterine lottery.
But in spite of not everyone having the same opportunities, in fact all of us have some opportunities.
In other words, we all get lucky.
I want to talk about what to do when this inevitably happens—how to prepare for it, how to recognize it, and what to do when you get lucky.
What differentiates people who “level up” in their circumstances from those who do not is not just the appearance of luck, but the ability to leverage it when it comes around.
Get Out of Your Own Way
When it comes to taking advantage of the lucky breaks that life throws our way, the first obstacle often isn't external; it's internal.
The "fight or flight" response hardwired into our biology means that we are often risk averse—after all, if our ancestors had been especially reckless under the dangerous circumstances of hunting and gathering, we probably wouldn’t be here today.
However, this is not the hunter-gatherer era. There are real risks out there in the world, but the risk of being killed by a wild animal (or a crazy person with a gun) is relatively small compared to the risk of, say, heart disease, cancer, or covid. That means that we’re using ancient “technology” (our cognitive shortcuts that cause us to avoid risk) and applying it to the modern world.
Cognitive biases like loss aversion make us more focused on what we could lose rather than what we might gain, causing hesitation just when swift action is required.
You might also believe nothing good can happen to you. Trust me when I tell you that this is cynicism in action, and nothing more. You need to break free of this and understand that you’re not cursed, and luck can (and will) come your way at some point.
In addition to all this mess, you might have another cognitive bias: a scarcity mindset. This can muddy the waters even more, causing loss aversion to overwhelm any hope of gaining something new. In other words, you won’t take a chance, even if the risk/reward ratio is favorable.
The Risk/Reward Ratio
Understanding this concept has been a huge key for me.
Although I believed I could do whatever I wanted with my life, I was still stuck with a mindset of protecting the things that were mine; after all, who wants to risk and lose?
Warren Buffett, who seems to know a thing or two about risk and investing, has a great answer for this conundrum. The old Oracle of Omaha says that you don’t want to put anything at risk that you can’t afford to lose, in order to gain something you don’t need.
Implied in this is that there are things you can afford to lose. This might mean investing free cash instead of spending it on a video game or movie: you can afford to lose that excess cash, so it’s appropriate to invest it.
Understanding whether a risk/reward ratio is favorable or not can be tricky, and you won’t always be right when you’re calculating this risk, but never fear: you can always wait for another opportunity that’s so obvious you don’t want to pass it up.
This is far from a mere financial lesson, though. Another way this can manifest is on a more emotional level: you may have a huge fear of being rejected, or made fun of, or not being as good as someone else. Taking a look at this through the lens of risk and reward, it’s not for me to determine if the emotional risk is worth it, but I’m just here to remind you to consider what that trade-off is.
In other words, emotional risk can really pay off, but you certainly don’t want to put yourself in a position where you can’t afford the level of exposure or “risk.” This is a space you’ll need to navigate alone, but I want you to start navigating it today if you’re not already doing so.
Resiliency
Yesterday, I wrote about my favorite book on leadership, Endurance. In that book, Shackleton had to adapt to the craziest of circumstances (I don’t want to spoil everything, so please read this book), but suffice it to say that essentially nothing went as planned.
When this happens, resilience comes into play. In my view, resilience is a combination of flexibility and strength. Porcelain is a very hard material, but if you throw it on the ground, it will shatter into thousands of pieces. Do the same thing with bamboo and watch it bend and bounce a little before looking up at you and yawning.
We have to be a little like bamboo, pivoting and yielding to opportunities when they arise, but also staying true to our nature.
Resiliency is your key to unlocking your ability to take risks. At least, it’s your key to taking risks you can afford to take.
Imagine being fired from a job, then pivoting to start a small business to earn some income while you look for another job. But the small business takes off, so you just stop looking for another job. Resiliency is what allows you to go with the flow.
Or maybe you have a surprising inheritance coming your way, some cash you weren’t expecting. Maybe you won the lottery, or maybe there was an unexpected cash settlement from a claim you were (unawares) part of.
These are all times to leverage luck, by being unafraid and resilient.
Seize Your Luck
While luck itself may be random, the outcomes you experience when you get lucky don’t always have to be.
Break free from your internal barriers. Take some time to understand the nature of risk and reward (I’ll write more about this in the future, but this book is a fantastic place to start). Be prepared to be flexible enough to take advantage of the opportunity, while strong enough to stay the course.
Are there any times in your life when you were able to leverage luck? How about times you wish you had done so, or would do so today if presented with the same opportunity? Let me know how you’re thinking about risk and reward, and leveraging luck.
I believe Seneca said that luck is what happens when preparation meets opportunity and I truly believe this is the case.
I was laid off from my job in June of 2022 and interviewed with about 20 companies until I got three offers. I had to say no to the first one without having certainty that I was going to get the other two and eventually decided to accept the offer from the company I currently work for.
We're a single income household so I chose fight when the stress kicked in. I believe I moved the resiliency meter a little bit that month.
Good stuff. We often require reminders about the significance of resilience and a deeper grasp of risk/reward dynamics, emphasizing the need for deliberate, contemplative action. While our minds may lean towards beliefs in predestination, we mustn't overlook our own autonomy, especially when faced with 'lucky' circumstances. Once again, it's narratives that shape our drives, even when that shaping isn't fully under our control.