J. Paul Getty planned to enter the U.S. Diplomatic Service, but, when he got out of college, the Oklahoma oil boom caught his attention. Since his father had already prospered in the oil business, he was irresistibly attracted to the prospects of wildcatting, and he decided to postpone his diplomatic ambitions for two more years.
He worked on other wildcatter's rigs and borrowed money from his father to raise money for oil speculation. His father only gave him small amounts of money and demanded prompt repayment.
J. Paul Getty spent his money frugally, and also saved money through haggling over prices.
At first his speculations did not go well, and a diplomatic career looked increasingly inviting. Then, early in 1916, he secured a bargain price of $500 on a lease and the well he sank produced 700 barrels a day. Suddenly, at the age of 23, he made a fortune.
Years later, journalists would ask him about his lucky beginning. They wondered how he knew that the well was so rich. He responded that he had gathered all the necessary geological facts from experts and the spot appeared to have been a good one.
?But,? he added, ? as for actually knowing what the outcome would be that was impossible. If there were a way to be a hundred percent sure where rich oil deposits are, nobody would ever sink a dry well.?
?Oil prospecting is like any other venture in life, from getting married to buying a car...there is always an element of chance, and you must be willing to live with that element.?
?If you insist on perfect certainty, you will never be able to make any decisions at all. You will simply paralyze
There he had the difficult task of raising money, which he did by working and borrowing. He then took care of his funds, by spending them frugally. Initially, he hit a number of dry wells, but one speculation paid off for him. This last speculation was a calculated risk. Yes, he was lucky, but he also did his best to attract that luck.
A notable feature in his ?luck? was his decisiveness. After reviewing the geological data, he decided to act on it. The data gave him odds on success, but it didn't guarantee anything. He could have continued to investigate, postponing the decision to act.
But, in his own words, he did not want to be ?like one of those government commissions that are afraid to make a decision. They hold hearings, collect facts, stew and fuss and keep very, very busy for months and months. After a while you know it's just a sham. The appearance of action is just a front to hide inaction.?
When you take chances, you risk defeat, you risk loss, but unless you play the game you may never win either. Playing to win also means willing to lose. Indeed, J. Paul Getty lost first before he won. However, money management enabled him to continue despite his losses. And because he only had small losses, he was able to keep enough resources to stay in the game.
Successful investors on Wall Street advise new investors never to gamble with their grocery money, because it has a twofold effect: one, it jeopardizes their well-being; two, they are nervous when they invest and this clouds their judgement.
In your own life, you can use the following checklist to be a 'luckier' and more prosperous person.
1. Find some area that needs investment of time, money, energy, and skill.
2. Calculate the risks.
3. Estimate the rewards.
4. Find the time, raise the money, harness the energy, and learn the skills.
5. Manage your resources so that you only take affordable risks.
Above all, remember that winning often involves risking, but risking does not mean gambling. When you gamble, you don't evaluate much information and you use all your resources. When you take risks, you review all the available information and only commit what you can afford to lose.
Dr. Abraham Weinberg, a prominent psychiatrist, once commented that passive people ?tend to let life happen to them instead of using its opportunities in an asserive way. Often they are afraid of change itself, even change without risk. They tell themselves, ?I'm afraid of going into this new situation,? even when the situation holds no objective terrors except its newness. Instead of examining the situation and finding what the risks actually are, they simply drop out by saying, ?No, it's too much of a gamble.? It may not be a gamble at all. They are only making an excuse for staying in some familiar territory.?
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Saleem Rana has sinced written about articles on various topics from Parenting, Travel and Leisure and Careers and Job Hunting. Saleem Rana got his masters in psychotherapy. His articles on the internet have inspired over ten thousand people from around the world.