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The biggest career mistake you’ll ever make is NOT TAKING RISKS!
2020 is behind us now, and 2021 could not come fast enough! History tells us that in times of crisis, we see the most remarkable innovations being made. The same can apply to you. Humans tend to find a way to survive and get out of tricky situations. That said, what are you planting now in order to rip the benefits in the medium-term?
We live in a world where industries keep being disrupted. Think about hotels and Airbnb, taxis and Uber, or even bookstores and Amazon.
If the industry you work in hasn't been disrupted yet, surely it will be sooner rather than later. This means that you need to be prepared for whatever the future may bring.
Not taking action can cost you more than taking risks. Have you ever stopped to think about the opportunity cost of not doing anything at all? We tend to just put much effort into understanding what can go wrong if we take a certain action or path. But we rarely quantify the cost of inaction. What have you lost due to fear or not wanting to take the leap?
2020 and social media has created an enormous amount of self-help gurus that say, "your path is your path, what's reserved to you will come" or "everything will sort itself out". Don't just sit and wait. This is where you will be left behind. Positive thinking is critical, BUT it is also paramount you ensure you are taking the right steps towards your career goals.
I recently came across an article written by Anne Kreamer, which argues that the riskiest move you can make is to assume that your industry or job is secure. We go again to the first point made: look at Amazon, for example. Surely bookstore owners thought that people would never buy online and would go for the in-person experience. They could not have been more wrong. So, the question you need to ask yourself is: Are you in the right place doing the right thing?
It takes courage, guts, and discipline to pursue one's dreams. The longer you stay in a given career path, the harder it is to exit it. People, in general, tend to be afraid to make bold moves in their lives. You don't need to turn 180 degrees. Start small, take baby steps until you realise clearly what's your path and what needs to be done to achieve it.
Anne states that there are all sorts of complicated financial and behavioural barriers to risk-taking - loss and risk aversion, the sunk-cost fallacy, poor planning - but in reality, it is all down to the fact that humans are wired to resist giving up the known for the unknown. Particularly during tough times, people feel compelled to keep unwanted jobs for security. Don’t fall into this trap! I know that personal circumstances can have a significant impact on your decision. If you are not happy in your job and have a mortgage to pay, perhaps you think five times (not just twice) before making a bold decision. If you have lost your job and have bills to pay, maybe you jump on the first job offer. But it doesn't have to be this way, or at least, as dramatic as you think. Planning and preparation are critical!
One thing I can tell you for sure: You must have your finances in order! Here is a page on Instagram you can follow (no affiliation) to help you kick-start your financial journey.
Some tips from the page:
1. Build a monthly budget: Become intentional with your finances and track your income and outgoings;
2. Spend less than you earn: Once you have a budget, you can enforce this step;
3. Pay yourself first: As soon as you are paid, direct a predetermined amount to pay down your debt, increase your savings and/or your investment pots;
4. Build an emergency fund: Save 3-6 months worth of your monthly expenses into an easily accessible cash fund/bank account;
5. Contribute to your pension: As a rule of thumb, your total pension contribution should be half of your age in % (this includes your employer-matched contributions);
6. Invest your long-term savings: Money sitting as cash in your bank account will lose value over time. Invest any savings you don’t intend to spend within five years.
If you are in a good financial situation, the odds will play in your favour, and you won’t feel like you need to stay in a job just because or you can finally take that step back to recharge or even start your own business.
Another thing you can do in parallel is to start building networks. Herminia Ibarra, an organisational behaviour professor at INSEAD, writes that people's existing contacts won't help you take action. It's rather the weakest links in your network that will help you do so. The reality is that the people surrounding you will often advise you in a certain way, probably in the path you are already taking.
Stanford sociologist Mark Granovetter discovered that the contacts most helpful to job-seekers were those with whom they had relatively weak ties that had been forged and maintained over several years. The more different their contacts’ occupations were from their own jobs, the higher the probability of successfully making a significant career change.
We tend to think that is an all or nothing approach. As stated before, take small steps, search what makes you happy, and investigate what that industry/job looks like. Start learning and take in new skills to prevent you from becoming obsolete before taking a big step. Start now, break it all down into small problems, and commit to solving them.
Actions for January:
· Plan your financial life – by doing so, you will liberate yourself to make bolder decisions that will make you happier.
· List activities that make you happy (don’t focus on your profession only) – I will get into more detail on next issues – in the meantime, follow Elekto on LinkedIn and Instagram.
· Take a look at what you think is your dream job – what are the skills they are asking for? List them all.
That’s it! I won’t give you any more homework for now. Do you think you can do these three things? Yes, you can! Come on, it is easy. You got this!
It doesn't have to be a new year, new you. What I aim for myself is a new year, improved me! 😊
Stay safe,
Claudia
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