MONEY: LUCK TAKES PRACTICE  

“Success is simply a matter of luck. Ask any failure.”

–Earl Wilson

“Fortune knocks at every man’s door once in a life, but in a good many cases the man is in a neighboring saloon and does not hear her”

–Mark Twain

Have you met people who are just lucky?

For instance, I know people who constantly win raffles, random drawings, and other contests based on chance.

And yes, I have even met people who know nothing about the stock market and make fortunes picking stocks. It is pretty annoying.

However, while I do feel very fortunate, pure dumb luck like that has eluded me. I have searched out and strung together many opportunities over a long period and have taken advantage of them. There was little random chance involved, just a lot of persistence and strategizing.

Yet, the successful and wealthy approach luck differently than others. They exploit some hidden factors that are not obvious.

We will see how that works.

LUCK EXTREMES

Luck, or the lack of it, is present in all aspects of life.

To illustrate that point, let’s look at the extreme opposite ends of the luck spectrum.

A strong candidate for the world’s unluckiest man would be Roy Sullivan. According to the Guinness Book of World Records, he has been struck by lightning seven times. Since the chances of being struck only once are about 1 in 80,000 in a lifetime, the odds against seven strikes are astronomical. It makes you wonder if Roy had a lightning rod for a spine.

At the opposite end of the spectrum, Joan R. Ginther was so lucky she won the lottery FOUR times. She first won $5.4 million, then $2 million, and then $3 million. Finally, as if that was not enough, she capped off her career with a $10 million jackpot in 1980.

So, is the 1% just lucky? Did they inherit luck from the Joan Ginthers of the world? Or did they become lucky because of fate?

What separates the lucky from the unlucky?

IS LUCK A SKILL?

Some researchers have conducted studies to find out. Richard Wiseman, a professor at the University of Hertfordshire in England, made a whole career studying it. In one famous study, he had test participants count the number of photographs in a newspaper. (Ok, some of you younger people reading this, stop rolling your eyes). The test subjects with more luck were much more likely to notice that on page two, there was a half-page ad. It said in large bold type: STOP COUNTING–THERE ARE 43 PHOTOGRAPHS IN THIS NEWSPAPER.

Wiseman followed up with other studies that showed lucky people tend to be extroverted, open to new experiences, and have a positive and open outlook.

So, maybe if you want to be lucky, pay attention and be open. Being friendly and smiling now and then is also a good idea. It sounds trite, but it is true. And, if you think about it, it makes sense. If you are positive and approachable, people may share ideas and opportunities with you. If you are alert, you may spot an additional opportunity.

Another hint comes from the book The Millionaire Next Door. One characteristic of successful individuals is their ability to see opportunities that others miss. Does this sound familiar?

So, are they just lucky to stumble across an opportunity? Maybe.

However, logic tells you that it is mostly a matter of observation. They also combine organization, people skills, and initiative to take advantage of the “lucky” opportunities others miss.

Finally, and I hate to say this, realizing that bad luck happens is important. Everyone knows someone who has suffered misfortune—cancer, accidents, etc., through no fault of their own. So, we can’t always blame the victim and assume that misfortune is their fault. Not everything is within a person’s control.

Still, having a lucky attitude takes practice. For example, consider Roy Sullivan another way. He was not completely unlucky—after all, he survived, and more than once, and lived until age 71. A lucky person would notice that fact, not just the lightning strikes. Maybe a lucky person would look at Roy and see an opportunity. Roy had amazing resistance. Why was that? What was the key to his survival when he went through experiences that would have killed anyone else?

And, remember, not everything is always as it seems, even when good luck is involved. Joan Ginther may come from a small town but also has a Ph.D. in Mathematics from Stanford. So, was she insanely lucky? Or has she observed and analyzed the lottery process and figured out the best way to beat the system?

My bet is on the latter. I think she learned to be lucky.

SUMMARY:

1. Luck is a skill. So, to be lucky, pay attention and be observant.
2. Bad luck happens, too. Still, you may have more control over your life than you think.

ACTION STEPS:

1. Be observant. Take the time to step back and take a broad view of a situation. You may be surprised at what kind of opportunities you observe to help solve the problems of others and yourself.
2. Be accessible and friendly. Openness may cause others to bring “lucky” opportunities your way.
3. Act on opportunities. Successful people use various skills, such as organization, action, and planning, to take advantage of the “lucky” opportunities that come their way.

Disclaimer: consult with a financial fiduciary before taking any steps outlined here. Not all advice may be suitable for your circumstances or investment style.