Welcome to the blog post #60! Click here to read more from previous posts.
Have you ever wondered what luck exactly is?
Luck is the concept of unexpected events that arise seemingly by chance.
We all know it plays a big role in success (remember the MILES framework from "The Unfair Advantages"?), but it feels like something entirely out of our control.
Here comes a question: Is it possible to increase our luck?
In other words, what if we could make ourselves more receptive to good fortune?
In my opinion, here's where the concept of optionality comes in. At its most fundamental definition, optionality is a toolbox of many options. When you have many options, you have more possibilities of getting what you want compared to no option on hand.
Optionality can take many forms, such as:
Career Optionality: A well-rounded skillset, valuable experience, and a strong network allow you to adapt to career changes or explore new exciting opportunities.
Financial Optionality: Multiple income streams, knowledge of investing, and an emergency fund empower you to achieve financial freedom and weather economic storms.
Location Optionality: Ability to live, work, and adapt in different locations and cultures, opens door to new experiences and opportunities.
By understanding the connection between optionality and luck, we can position ourselves to be luckier. In this luck exploration journey, here are some key learnings I’ve got.
1. Optionality Doesn't Guarantee Luck, But Increases Its Impact
A simple way to know the relationship between luck and optionality is to think about a negotiation. Your bargaining power thrives on having strong options. The more options you have, the more flexible you are and the better you can navigate the deal. This concept translates perfectly to the relationship between luck and optionality.
Professor Mihir A. Desai well captured this idea in his article: "When you hold an option and the world moves with you, you enjoy the benefits; when the world moves against you, you are shielded from the bad outcome."
Optionality empowers you to explore possibilities without being locked into a specific path. While optionality doesn't guarantee good luck, it significantly increases your chances of capitalizing on fortunate situations. During favorable times, a diverse skillset allows you to seize career opportunities or develop successful side hustles.
Optionality also provides a buffer against unforeseen challenges. With more options at your disposal, you can adapt your approach and pursue alternative paths when circumstances change. For example, a broad skillset can shield you from the impact of a shrinking job market, while multiple income sources can protect you from financial burdens during economic hardship.
2. Don’t Pray For Luck, But Be Prepared
The concept of "prepared luck" has been enlightening for me, shedding light on how optionality can pave the way for seizing unexpected opportunities.
I’ve been many times using the advice from Paul Graham's “How To Do Great Work” essay, as it perfectly shows us the way to get higher chances of luck.
“When you read biographies of people who've done great work, it's remarkable how much luck is involved. They discover what to work on as a result of a chance meeting, or by reading a book they happen to pick up. So you need to make yourself a big target for luck, and the way to do that is to be curious. Try lots of things, meet lots of people, read lots of books, ask lots of questions.”
Be curious to learn and experiment with all the chances we have in work and life.
If you are an employee, be proactive to improve and diversify your skill sets. Invest in yourself by taking courses or attending workshops to learn new skills that will make you more adaptable to changes or challenges.
Do research on your industry and keep up with the latest trends.
Network with other professionals and seek out mentors who can help you navigate your career.
Make sure to stay up-to-date on your performance reviews and evaluations so that you know where you stand in your organization.
Another way is that you can also learn new skills to work for yourself and become an entrepreneur. This could include skills such as coding, digital marketing, graphic design, web development, or investing. Starting your own business is a great way to gain financial freedom, and having the right skills can help you reach success. You can also use these skills to freelance and work remotely. With the right training, you can open yourself up to a world of possibilities.
These types of investments offer unlimited upside potential in terms of personal growth and increased future earnings potential. The downside loss is only limited by the cost of the course's tuition and your time commitment. With the abundance of free resources available on the Internet today, this risk has significantly decreased.
3. Understand Implications Of Options
While optionality presents opportunities for growth and exploration, it's important to acknowledge that not all options are created equal. Within the spectrum of choices lie both favorable and unfavorable outcomes.
Consider your leisure time after work as an example. You have the freedom to decide how to spend it: perhaps indulging in Netflix, scrolling through social media, honing a new skill, or delving into research for potential investments. Each option carries its own set of implications and consequences.
Therefore, the mere presence of options isn't sufficient. What truly matters is your ability to discern between them and make informed decisions. This involves conducting a thorough risk-reward evaluation for each option, ensuring that you're maximizing potential benefits while minimizing possible drawbacks.
By cultivating optionality and making informed decisions, you can increase your chances of encountering "prepared luck." These fortunate events, coupled with your preparedness, can transform into stepping stones on your path to success. Remember, luck may be unpredictable, but preparedness empowers you to seize its potential.
That’s all for today. Till next week!
Cheers,
Do Thi Dieu Thuong