Ray Dalio says, “Whatever asset class you invest in, I promise you, in your lifetime, it will drop no less than 50% and more likely 70% at some point. That is why you absolutely must diversify.”
The same is true for self-worth. Whatever area of life you’re most invested in, will experience a large dip at some point. It’s just the way life works. Things move in cycles.
While we may not admit it, many of us attach our happiness, self-worth to external projects. When business is great, we feel great. But when it’s suffering, we feel bad and our self-worth comes down tumbling with it. A good way to counterbalance is through diversification. Instead of putting all of your self-worth in one bucket, diversify by focusing on different areas of your life like relationships, fitness, hobbies.
It’s rare for every area in your life to be “down” all at once. While sales might be slow in your start-up, you might be hitting a new one-rep max in the gym. While you may have lost a big client, you may have also just mastered a new song on the guitar. There’s always something to feel good about.