The Best Education: Failure
Why money is not taught in schools
Failure.
The word that makes the skin on your neck crawl a little. Something you certainly don’t want to be called. Something you certainly don’t want to experience.
Failure.
A lack of success. The inability to meet an expectation.
To some, failure is feeling like the outcast kid in the lunchroom who trips and spills his tray everywhere in front of the whole school. To most, failure is not friendly and failure is not kind.
Just like tripping and falling in front of the whole school, failure can be humiliating. Yes, it can be, but only if you let it. I failed miserably many times in my life. Failure can suck but failure can also teach. It is a matter of what you let it do.
I grabbed the tail of my grandparents’ cat at a young age. I failed but I also learned a valuable lesson to not grab a cat’s tail.
Even worse, my sister and I had the grand idea of both trying to run on a treadmill at the same time when our parents were out of town on vacation. Just one of the dumb ideas kids get when they're bored, you know. As we all know, a treadmill is meant for one person. Immediately, I fell off and got stuck between the wall and the treadmill. My arm was skinned like cheese in a cheese grater before my sister could turn it off. It was a quick and painful lesson. I failed and I learned.
I quickly learned that a treadmill is meant for one person but that didn’t stop me. Once the tears were gone and the Aquaphor was applied, I was back ready to go. The next day at school, I wasn’t embarrassed by my skinless arm, no, I thought it was quite cool much to the disdain of my parents. I was so unbothered I wore a sleeveless shirt instead of opting for a t-shirt, which would have hidden my battle scar. I lacked a sense of embarrassment and I, simply put, had no fear.
No one learns skills quicker than someone who lacks a sense of embarrassment. It is a trait we have an abundance of at a young age. It is a trait that we shouldn’t seek to lose.
The Paradox: Kobe and Failure
In an elimination game of the 1997 Western Conference Semifinals, Kobe Bryant air-balled four shots late in the game. It was the defining moment of the season. The Lakers would lose and Kobe would pack his bags and head home. Kobe had failed.
It was a rather monumental moment in his career. In the biggest moment of his career, he failed. Rather than become a victim of the circumstances, it just became fuel to the fire. It was the teacher Kobe never knew he needed.
“Get over yourself. Right? You’re worried about how people may perceive you and you’re walking around and it’s embarrassing because you shot five airballs. Get over yourself. And then after that, it’s why did those airballs happen? Got it. High school, the year before we played 35 games, max. Right? A week in between, spaced out, plenty of time to rest. In the NBA, it’s back to back to back to back to back to back. I didn’t have the legs.”
“I got to get stronger. I got to train differently. The weight training program I am doing, I got to tailor it for an 82-game season so when the playoff rolls around, I am stronger and that ball gets there.”
Take it from Kobe, Failure is your Friend
Failure can be a blessing. Most would say until a point. Failure doesn’t get along with everything. Take money and failure. Those are certainly two things that don’t mix like oil and water. Money is something that largely isn’t taught in school so failure can be in abundance. Maybe a downfall of our current educational system.
The American education system is great. It really is, it teaches us a lot. I spent all 13 years of my schooling in the public school system. I learned so much not only in the classroom but outside of it. Some things that simply could not be taught but had to be experienced. All walks of life. All different backgrounds.
However, some may say, the education system does miss the mark on one thing. Money and the things that surround it.
We aren’t taught budgeting
Retirement and setting up a 401k is an afterthought
One of the hottest debates right now, renting versus buying, is never touched on
Debt, who is she?
Life and money are a game of failing and figuring out as you go. Never are you taught the implications of debt. Never are you taught that each dollar of debt is a part of your future that someone else owns. Never are you taught what may impact your credit score.
Money and failure, most like to think, are two things that don’t go together. However, I’d argue quite the opposite.
Some things can’t be taught, they must be experienced. Some lessons aren’t truly understood until they are experienced. There is a difference between being taught something and then actually experiencing it. The level of wisdom obtained is different.
Kobe could have been taught all about the grind of the NBA season. The wear and tear on the body as you head into the playoffs just compounds. It truly wouldn’t hold weight until he experienced it. And that he did. He felt the heat of the playoffs and never would he underestimate the grind of an NBA season after 1997.
Why Money isn’t Taught in Schools
Money is not immune to this phenomenon. Maybe the reason why it isn’t taught in schools is because we should learn money through failure. We all have different money-spending, saving, and investing habits. Money isn’t a one size fits all lesson. Money is different for everyone. Some are more risk-averse than others. Some have a higher income than others. Everyone has a different situation.
That’s why money and the associated risk are best learned through failure.
From the course of 2019 to early 2021, I poured an aggressive amount, relatively speaking at the time, of money into crypto. You name it and I was in it. ETH, Bitcoin, Solana, Litecoin, the list goes on. I did quite well for myself until I learned markets can’t go up forever. I had no mechanics, no plan, and just planned to hold until the end of time.
In my eyes, crypto was the future. However, if you asked me, I really had no idea why. I truly didn’t understand the inner workings of it and how each coin differed from the next. I was a holder until Bitcoin went to $1 million. It was simple math.
Well, we know how that ended. Badly, to say the least.
Honestly, did it hurt to lose a significant chunk of change? Yes, but I walked away having learned many valuable lessons. You can’t just dollar cost average your way to success. Going in blind with no plan to take profits and no plan to exit is a recipe for disaster. Doing zero research and pouring money into something is just the same as lighting your money on fire. The lessons go on.
I learned a lot. I would have never learned any of this had I not failed. My teachers in high school could have shouted from the mountaintops on crypto. How it may be a scam. How it may be best to do your research. How it will be survival of the fittest and every coin or protocol may not survive. But we all know that would be in one ear and right out the other.
It took me failing to experience the pain of losing money and to truly understand. Failure was a more sobering reality check than school could ever provide. With that came many lessons I simply couldn’t be taught but that I had to experience. I, like everyone else, was susceptible to failure.
Don’t be afraid to Fail
Failure is inevitable and failure will be in every part of your life. Money is no different. There is no way to guarantee a life of wealth in this world or else everyone would do it. However, there are ways to position yourself to be in a better position to achieve your desired level of wealth.
You shouldn’t ever be afraid to fail, especially when it comes to money. At a young age, take calculated risks, within the confines of what you can afford. There is no better way to learn. Failure provides the small price you must pay to learn how money works for you. No education is free and we must all risk something to make something.
Chance of failure and risk are directly correlated and risk is a necessity in life. We never regret the things we did or failed at, we just regret that something didn’t turn out the way we wish. Fear will kill more dreams than failure as they say but don’t let failure compound, on top of that fear, and kill your dreams too. Just never be afraid to fail.
Parting Words
Most importantly, don’t let the judgment of others when you may fail, concern you. People love failure.
A coward loves a failure because failure validates their own cowardice. It gives them reason to think ‘I don’t look like an idiot for not trying myself.’ People are afraid to try hard because if you try hard and you fail, you feel like a failure. The aspect of being a true failure, where nothing is gained, doesn't come from success in the end, it comes from if you quit on yourself and held back your true potential.
Failure is one of the best teachers of life. Failure can be a blessing. It is all a matter of how you choose to view it. If you’re not failing occasionally, you are probably being too conservative. Don’t hold yourself back from your true potential.
Thanks for reading.
P.S. Be smart with money and do what is best for you. This is not financial advice, just some informational advice.
Scantron’s Selections - A few things I loved this week.
Paul Graham - How to Do Great Work - I simply can’t get enough of this. Have read multiple times, taken notes, dissected every part.
The Nick Bare Podcast - Chris Williamson - I am a big Chris Williamson fan and he may be better as a guest than as a host, which says a ton. Nick Bare is also a great host.
The CrossFit Games - I always marvel at the strength, endurance, and mental fortitude of these folks.