# The Influence of Fortune on Attaining Above-Average Wealth
In conversations about personal finance and wealth building, the saying “hard work pays off” is often referenced as a key factor in achieving success. Nevertheless, it is becoming increasingly clear that accumulating above-average wealth is not merely the result of hard work and determination; instead, it is frequently influenced by luck. Acknowledging the impact of chance on our financial achievements is essential for preserving humility and keeping us aware of the risks of overconfidence, which can lead to unwise financial choices.
## The Significance of Luck in Finance
Luck appears in numerous ways throughout our lives, subtly shaping our financial paths. Be it an unexpected job offer, a well-timed investment, or merely finding oneself in the right place at the right time, these fortunate events can significantly alter our financial outcomes. When we overlook these elements of luck, we risk developing an exaggerated perception of our capabilities, which can result in poor financial decisions.
### The Risks of Overconfidence
A classic example of this overconfidence can be observed in the financial climate of 2007. Numerous individuals, buoyed by flourishing markets and increasing earnings, made financial decisions that were vastly misaligned with their actual risk profiles. I experienced this firsthand when I mistakenly invested a large portion of my net worth into a vacation property in Lake Tahoe, convinced that the prosperity of the era would last forever. The eventual downturn of the real estate market underscored the mistake of equating short-term economic success with personal skill.
## Reflecting on Personal Financial Fortunes
As the year draws to a close, it’s an opportune moment to assess our financial well-being and progress—a review best conducted with an awareness of the role luck has played. Here are five fortunate instances from my financial history that have profoundly impacted my journey:
### Fortunate Financial Event #1: Securing a Job After Graduating from a Non-Target School
In 1998, I was lucky enough to have my resume picked from a pool of thousands at a career fair by Kim Purkiss, who recognized potential in a graduate from a non-target school. Her encouragement led me through several interviews, ultimately landing me my first role in a competitive industry. Without her faith in my abilities, I might never have embarked on my financial path.
### Fortunate Financial Event #2: Investing in a Rapidly Growing Chinese Internet Company
Early in my career, I made a fortunate investment in a Chinese internet company, VCSY, right as tech stocks were soaring. My initial investment increased significantly, giving me the financial buffer I needed during an industry downturn shortly thereafter. This windfall enabled me to shift into real estate investments, laying the groundwork for my financial stability.
### Fortunate Financial Event #3: A Mentor Averting Unemployment
Elaine, a senior VP at my company, recognized my challenges during a difficult period and directly assisted my transition to a higher role at another firm. Her support not only preserved my career but also facilitated my continued professional growth.
### Fortunate Financial Event #4: Enduring Google’s Algorithm Changes
When I created Financial Samurai out of concern for my economic stability, I was conscious of the unpredictability of online businesses. To my surprise, my site continued to thrive despite numerous algorithm shifts that affected other websites. This ongoing success has granted me additional income that I reinvest, ensuring my financial security.
### Fortunate Financial Event #5: Early Investments in AI
My early investments in AI enterprises have proven to yield positive outcomes amid a period of swift technological progress. This foresight has empowered me to construct a varied portfolio capable of enduring market volatility, demonstrating that timing and luck can converge to create advantageous results.
## Acknowledging Your Own Fortunate Events
It’s crucial to take a moment to reflect on the lucky events that have shaped your financial journey. Recognizing these “lucky breaks” can provide a balanced view of our accomplishments, reminding us that success is often a blend of determination and fortunate happenstance.
### Conclusion: Accept the Influence of Luck
In navigating the realm of finance, it is essential to stay aware of the components that contribute to our success, particularly the element of luck. This understanding fosters humility and supports a practical attitude towards investment and financial management.
As we recognize our financial achievements, let us express gratitude for the unique series of fortunate events that have influenced our paths. If you have encountered lucky financial moments, take the time to appreciate them; they may be the quiet catalysts of your financial development. By adopting this mindset, we can train ourselves to avoid attributing our successes exclusively to hard work and instead acknowledge the serendipitous moments that played a part, leading to a more balanced and sustainable wealth-building approach.