Risk tolerance

I have a hunch that your risk tolerance is relatively fixed.

If you are conservative, you will be anxiety ridden if you deviate from the norm.

If you are a gambler, you will be unhappy if you're not making bets.

But risk tolerance is largely feeling based. Do you feel good or bad about a risk?

Both conservatives and gamblers can go 1099, but it's important to address the feelings that will come up when thinking about the risk.

If you are conservative, to address your anxiety, you may only feel good about making the leap if, before hand, you have a year's worth of savings in the bank in case something falls through.

If you are a gambler, to address your need for excitement, you may give yourself a deadline to quit your job e.g. in three months you will leave no matter what your situation is. That will motivate you to take the necessary steps to go 1099.

For the conservative, addressing the need for safety is critical.

For the gambler, addressing the boredom is critical.

Know where you fall on the spectrum, and plan accordingly.

Want the full playbook? Check out Going 1099.