You always have to have a plan B

Thursday, February 9th, 2017

Everybody fails, but not everybody responds to failure the same way, Mike Riggs notes, as he interviews Megan McArdle about The Up Side of Down:

Mike: You use the writing profession as an example of this.

Megan: You have to accept that being bad is part of learning to write. Most people who end up approaching professional writer status were always better at it than other kids. Then they get into the professional landscape and realize everyone else in the industry was also better at it than the other kids. This can be very traumatic for a lot of writers, and I’ve seen some of them just freeze. They don’t turn stuff in because as long as they haven’t turned it in, it’s not bad yet.

How do you hack that thinking? You say to yourself, “Look, I can rewrite garbage, I can’t rewrite nothing.”

Mike: It’s the iteration paradox. You miss 100% of the shots you don’t take, but you also miss a ton of the shots you do take when you’re first starting out. You have to do a thing over and over to get good at it, while somehow dealing with the fact that it’s really embarrassing and discomfiting to try hard at something and still be bad.

Megan: And the only way around that is to accept that failure is an essential part of the process.

You are not supposed to sit down and be Proust on your first pass. Proust wasn’t even Proust on the first pass. That means you have to see doing something badly as better than not doing anything at all. I won’t get fired for handing in 1,000 bad words. I will definitely get fired for not handing in anything.

After that, the next step is learning to recognize where and why you’re bad without rolling around on the floor, saying, “This is terrible, I’m obviously the world’s worst writer.” And you do that by looking at your bad work as a dipstick that measures where you can improve rather than one that measures your innate talents.

Mike: This speaks to the idea that learning how to do something new is good for you even if it doesn’t necessarily turn into a career.

Megan: We learn by doing stuff not well. That’s how people learn to play tennis. You don’t become good at it by creating a really elaborate theory of tennis ball physics, or else MIT would win Wimbledon every year. You hit a ball, you try to guess where it will go. It doesn’t go where you expect and then on the 100th time you finally hit it right. By hitting it wrong all those times, you learn to hit it right.

If you’ve never done anything you weren’t good at, you can’t learn the valuable skill of sucking at something but continuing to do it, which is how people get good at anything. And we have to make ourselves do it because doing something you aren’t good at is usually less rewarding than things that come more easily.


Mike Riggs: It seems like the best way to hedge against that kind of collapse at the institutional level is to be as diversified as possible at a personal level. Try things that are difficult, save as much as you can, contribute to a 401k. But even that is hard for lots of people.

Megan McArdle: The fact is you can’t assume nothing bad will happen. You could get hit by a truck tomorrow. Your company could go under. We should prepare for failure, which is why I always tell my readers to save 20% of their gross income. As you can imagine, this is not a popular suggestion with my readers.

I also advise people to have a year’s worth of expenses in an emergency fund. This was viewed, even by financial advisors, as quite conservative. But I spent two years being unemployed after getting what was supposed to be the golden ticket to a guaranteed job, which was an MBA from a top-five school. And that taught me there’s no such thing as a golden ticket. You always have to have a plan B. You always have to be thinking about what you’ll do if your company fails. Where will you go next? You should be maintaining connections in that industry, but you should also be living below your means. You should have a smaller mortgage than what you can afford. You should have more savings than you really need.

If you end up dying of cancer at the age of 40, you’ll have over-saved. But if you die of cancer at the age of 40, your biggest regret is not going to be that you didn’t spend more money while you were healthy. Your biggest regret is going to be about relationships and the people you didn’t call, so call your mother.

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