I was at a professional event recently and met an incredibly successful person who was sharing some stories of his career journey.
His path included twice losing obscene amounts of money, much more than most people make in their whole lives, and yet now being successful a third time. One of the losses involved, a trusted colleague lying about something which led to the collapse of a company he was running.
After sharing these stories, he leaned over towards me and shared this advice: Never to go all in after some initial success because you can never predict every source of risk.
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It used to be called a Management Reserve, but now I would consider Adaptive Planning , a term increasingly referenced in IT and budget circles that means actively planning for uncertainty and changes rather than rigid commitments.
Great point Jonathan — Lockheed had Management Reserve as a powerful concept back when I was there in the early 2000s, and it’s a great concept to apply to personal finances for entrepreneurs