Logo

The Hidden Cost of Playing It Safe With Money, with Dr. Margie Warrell

en

January 31, 2025

TLDR: Dr. Margie Warrell discusses stepping out of the 'courage gap' to make brave financial decisions, such as taking concrete steps to build wealth and investing. She emphasizes that courage is taking action despite fear, even amidst market volatility. The podcast offers 5 critical steps: focusing on wants over fears, reframing narratives, practicing physical methods to manage fear, stepping into discomfort, and learning from setbacks.

1Ask AI

In this engaging episode of the Afford Anything podcast, Dr. Margie Warrell, a recognized authority in risk management, discusses how fear often hinders smart financial decisions and defines the critical concept of the ‘courage gap’—the space between where you are now and where you could be with courageous action. Here’s a concise summary of the key insights from this enlightening discussion.

Understanding the Courage Gap

  • Courage Gap Defined: Dr. Warrell explains that the courage gap represents the distance between your current life and the life you could create through brave action. For investors, this translates into the space between wishing for financial independence and taking actionable steps towards achieving it.
  • Personal Anecdote: She shares the experience of her daughter who, after pursuing an acting career, realized she lacked the deep desire needed to sustain the tough journey of waiting tables for years. This revelation illustrates the importance of defining what you truly want versus what you merely wish for.

How Fear Impacts Financial Decisions

  • Negativity Bias: Our brains are wired to focus on potential losses more than gains, leading to a heightened fear of market downturns compared to opportunities for growth. This bias can paralyze decision-making and hinder financial progress.
  • False Humility: Many professionals mistake humility for passivity, waiting for others to notice their contributions instead of advocating for themselves. This often leads to stagnation in career growth and missed investment opportunities.

Five Steps to Bridge the Courage Gap

Dr. Warrell outlines five actionable steps designed to help overcome the courage gap and inspire bolder financial moves:

1. Focus on What You Want, Not on What You Fear

  • Embrace a future-focused mindset by redirecting your attention from potential losses to your financial aspirations.

2. Rewrite Your Story

  • Recognize the narratives you tell yourself about your abilities. Transform limiting beliefs into empowering stories that support your goals.

3. Embody Courage Physically

  • Fear manifests in our bodies. Engage in physical practices like deep breathing to ground yourself and reset your nervous system before making financial decisions.

4. Step Into Discomfort

  • Real growth occurs outside of your comfort zone. Embrace the discomfort of taking risks—whether that’s making your first investment or seeking new job opportunities.

5. Find the Treasure When You Trip

  • Understand that failures offer valuable lessons. Instead of being deterred by setbacks, analyze what went wrong and use those insights to improve future decisions.

Practical Applications

  • Dr. Warrell emphasizes that actualizing the steps mentioned requires courage—not just waiting until you feel ready. Experiencing fear is normal, but acting despite it is crucial.
  • She advocates for taking small, daily actions that challenge your comfort zones such as trying new experiences, initiating difficult conversations, or actively seeking ways to optimize your financial situation.

Conclusion

The episode effectively illustrates that while fear can block financial success, understanding and acting against those fears can lead to significant personal and financial growth. Dr. Warrell’s insights empower listeners to cultivate the courage needed to take control of their financial destinies.

Key Takeaways:

  • Loss aversion is a significant barrier to wealth creation—it’s essential to understand and manage this bias.
  • Actively advocating for yourself is crucial in career growth; don’t rely solely on others to notice your contributions.
  • Every failure carries lessons; converting setbacks into strategic insights enhances future decision-making.

Listeners are encouraged to integrate these principles into their lives to build resilience and foster the courage necessary for financial independence. By bridging the courage gap, individuals can transform their financial prospects and embrace the opportunities that lie ahead.

Was this summary helpful?

Recent Episodes

Treasury Tantrums, Arctic Routes, and McKinley's Ghost

Treasury Tantrums, Arctic Routes, and McKinley's Ghost

Afford Anything

#580: "If you want to understand what's happening in the economy, look at bonds," begins today's episode, where we explore how the bond market acts as a crystal ball for economic trends. The bond market has been sending some clear signals lately. Interest rates remain elevated, with 10-year Treasury yields about 1 percent higher than their September 2024 low. After a challenging 2024 where bond returns flattened to just 1.18 percent, both the U.S. and U.K. are seeing historically high yields. We break down what's driving these changes and explain key concepts like term premium — the extra return investors demand for holding longer-term bonds. The Federal Reserve's recent moves are shaping this landscape. After cutting rates by 1 percentage point between September and December 2024, Fed officials are now signaling a more cautious approach, wanting to see further inflation decline before considering additional cuts. Then we explore why President William McKinley is suddenly relevant again. McKinley, whose term began in 1897, was known for his imperialist expansion and love of tariffs. His presidency came towards the end of what historians call "the long 19th century" — a period from the French Revolution in 1789 to the start of World War I in 1914. This era was marked by massive social upheaval, major technological advancement, the First Industrial Revolution, and huge migration into cities. It also included the California and Klondike Gold Rushes. The episode then turns to what some are calling the "Cold Rush" — the race to claim influence in the rapidly changing Arctic. With ice melting four times faster than global averages and the potential for ice-free Arctic days by 2030, nations are competing for new shipping routes and access to resources. We examine three emerging paths: the Northern Sea Route along Russia's coast, the North-West Passage along North America, and the Transpolar Sea Route across the North Pole. Finally, we dive into an overlooked story: the global tax war. In 2021, 136 countries agreed to establish a 15 percent minimum corporate tax rate to prevent profit-shifting to tax havens. While the U.S. already exceeds this minimum with its 21 percent domestic rate, implementation faces challenges due to different methodologies for calculating tax bases and recent political developments that could affect its future. Resources mentioned: https://www.federalreserve.gov/econres/notes/feds-notes/the-treasury-tantrum-of-2023-20240903.html https://www.pimco.com/us/en/insights/will-the-true-treasury-term-premium-please-stand-up https://www.bls.gov/news.release/pdf/empsit.pdf https://youtu.be/gQqcKepuQdA?feature=shared https://www.morningstar.com/bonds/how-largest-bond-funds-did-2024 https://www.npr.org/2025/02/05/1229167003/mckinley-trump-tin-tariffs https://www.economist.com/finance-and-economics/2025/01/23/the-arctic-climate-changes-great-economic-opportunity https://www.clingendael.org/pub/2020/presence-before-power/4-greenland-what-is-china-doing-there-and-why/ https://www.clingendael.org/pub/2020/presence-before-power/ For more information, visit the show notes at https://affordanything.com/episode580 Learn more about your ad choices. Visit podcastchoices.com/adchoices

February 08, 2025

Q&A: Two Weeks Until My Tenants Move In And I Have Nowhere to Go

Q&A: Two Weeks Until My Tenants Move In And I Have Nowhere to Go

Afford Anything

#579: Todd is in a real estate bind. He found out six days before closing on a new home that it wasn’t legally sellable. And renters are moving into his current home in two weeks. What should he do? Anonymous is excited about expanding her real estate portfolio. Should she sell her $2.5 million rental property in the Bay Area to do this, or can she keep it and leverage the equity instead? Former financial planner Joe Saul-Sehy and I tackle these two questions in today’s episode. Enjoy! P.S. Got a question? Leave it at https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode579 Learn more about your ad choices. Visit podcastchoices.com/adchoices

February 04, 2025

Q&A: The Efficient Frontier Was Perfect Until HR Got Involved

Q&A: The Efficient Frontier Was Perfect Until HR Got Involved

Afford Anything

Listeners learn about dealing with limited investment options in employer-sponsored 401k plans and how to identify oversights in rollovers from 401k to a traditional IRA. Molly shares her experience and Joe Saul-Sehy offers advice.

January 28, 2025

The World's Richest People Are Weird by Design, with William Green

The World's Richest People Are Weird by Design, with William Green

Afford Anything

#576: The world's greatest investors have a secret: they're weird.  When one young fund manager met Bill Miller for the first time, he refused to shake hands. Instead, he locked eyes and declared: "I'm going to beat you, man." William Green joins us to share what he's learned from decades of conversations with investing legends — from the hyper-competitive to the deeply philosophical.  These conversations reveal that success isn't just about strategy; it's about understanding yourself and playing to your strengths. The best investors are mavericks who think differently. They're willing to look strange, be lonely, and diverge from the crowd. Templeton demonstrated this during WWII. When Germany invaded France and markets crashed, he bought 104 stocks trading under $1 — including 37 bankrupt companies. His contrarian bet paid off 5x when markets recovered. But Green emphasizes this isn't just about getting rich.  His decades of interviews reveal deeper wisdom about building a good life: Great investors focus on what they can control. They can't predict markets, but they can manage their behavior and emotions. They embrace simplicity. Jack Bogle advocated owning low-cost index funds rather than chasing complex strategies. They understand odds and risk. Howard Marks asks "What's the consequence if I'm wrong?" before making decisions. They play to their strengths. Charlie Munger says if you're 5'3", don't try to be a pro basketball player. They live below their means. As investor Tom Gaynor notes, "If you're living within your means, you're already rich." Green shares a practical framework called HALT PS — don't make important decisions when Hungry, Angry, Lonely, Tired, in Pain, or Stressed. This applies beyond investing to daily life. The conversation explores how to build resilience before market crashes through healthy habits, self-awareness, and preparation. Green notes that many successful investors practice meditation and read widely across disciplines. Even legends make mistakes. Bill Miller saw his assets drop from $77 billion to $800 million during the 2008 crisis. But he rebounded by staying true to his principles and learning from failure. Green's key message? Focus less on getting rich and more on building an "anti-fragile" life aligned with your values and strengths.  The best investors aren't just good at making money — they're skilled at creating lives of meaning and purpose. Find more from William Green at williamgreenwrites.com or on his podcast Richer, Wiser, Happier, featured on the We Study Billionaires feed. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (01:00) Meeting Sir John Templeton in the Bahamas (04:02) Templeton's WWII stock strategy during market crash (12:00) Wisdom vs survivorship bias in investing stories (14:55) Why great investors recommend index funds (23:34) Prioritizing freedom over wealth maximization (39:27) Bogle's client-first philosophy (51:32) Living below means for market volatility (01:01:37) HALT PS conditions leading to poor choices (01:06:45) Using data for better decision making (01:11:13) Bogle's emphasis on simple investing (01:14:30) Danoff's "stocks follow earnings" strategy For more information, visit the show notes at https://affordanything.com/episode576 Learn more about your ad choices. Visit podcastchoices.com/adchoices

January 24, 2025

AI

Ask this episodeAI Anything

Afford Anything

Hi! You're chatting with Afford Anything AI.

I can answer your questions from this episode and play episode clips relevant to your question.

You can ask a direct question or get started with below questions -

Sign In to save message history