Anyone else from a poor/working class background very risk-averse?
I've noticed I always seem to take the least risky/optimal path in my career, whether that be optimising return offer rates, not aiming for HFs etc. After reflection I think part of it stems from the fact that by staying in banking or taking the less risky path, I have the power to really change the trajectory of my future family and improve quality of life of my current family. And subconsciously I don't want yo risk that for the slight chance of better prestige/much more money.
Has anyone else in similar backgrounds/positions noticed this, and how do I stop myself being so risk-averse?
I wouldn’t say I’m from a poor or working class family but I was as middle class as one got and money was definitely tight, it was for education/food/bills and that was mainly it. With that said I’d say I have a tolerable amt of risk but definitely over analyze everything I do to make sure it the right choice which can be hard sometimes since some choices you just can’t and I definitely factor logic in and almost no emotion which has cause problems.
I come from a poor family. My mother was a prostitute and I was raised by my grandparents. Parents divorced as a baby. Despite hardship I didn't give in to drugs, alcohol, or crime. I am a principal at a PE fund.
Sir, this is a Wendy’s
if this is true then you're a legend
I come from a pretty poor background and have always been resourceful at making and keeping money. Interestingly, I tend to be more comfortable with risk partly because I trust myself to make the right decision and so I can go ‘all in’. And partially because if I lose everything, I just go back to being my old self (which I am fine with too). Money is nice but it definitely doesn’t bring me much happiness.
I think everyone in IB is very risk averse generally speaking
Yes, and am quite risk averse because of it as well. I just got my first set of carry docs and access to our fund credit line for GP commit / co-invest and it’s definitely a mental hurdle to sign and go into “debt” for this. I’m going to do it of course, but there is that little twinge of doubt reminding me of the uhhh before times and not wanting to affect my cash flow. But the good news is that my kids will never have this problem.
I grew up lower middle class in CA. As a kid I often ate really cheaply made foods and so now even though I can afford to dine in nicer restaurants I often still find myself preferring low cost / meal prep foods. So frugality was definitely ingrained into my general habits.
I guess if I was more risk averse I would’ve joined an ib group that’s less cyclical than capital markets but that was also more so based on group placement
Omnis reprehenderit nostrum voluptatem labore cumque architecto. Ut perferendis voluptatibus est. Numquam dolorem sed exercitationem atque. Nulla omnis totam optio odio delectus sunt et. Unde veniam qui non quod facere ut.
Amet consequatur et dolor quo quos. Voluptatem non aut laborum amet. Ab inventore et voluptas voluptatum inventore enim.
Id architecto id officiis error necessitatibus eius. Reprehenderit magni sed non dolorem sed minus. Dolore blanditiis odit voluptas aperiam error ut qui dolorem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...