I lost everything because of one simple assumption. It wasn’t a bad decision that ruined me — it was the faulty premise underlying all my decisions that brought my financial world crashing down.
My downfall came from believing that banks would always lend me money against the equity in my properties. I never questioned this assumption. I never considered that banks might actually want to possess my properties rather than continue lending against them.
This blind spot in my thinking proved catastrophic. When the lending stopped, I found myself in serious trouble with no backup plan. The equity I had built up – which I thought represented security and leverage – suddenly became worthless when I couldn’t borrow against it.
The Hidden Danger of Unexamined Assumptions
What I’ve learned through this painful experience is that we must examine the assumptions behind our decisions even more carefully than the decisions themselves. Most people focus intensely on decision-making while completely overlooking the premises those decisions are built upon.
Think about it: How often do we question our fundamental beliefs about how things work? We make decisions daily based on assumptions we’ve never scrutinized:
- That our job will always be there
- That markets will behave in predictable ways
- That institutions will operate according to our expectations
- That what worked in the past will continue working in the future
These assumptions form the invisible foundation of our decision-making process. When they’re wrong, even the most carefully considered decisions can lead to disaster.
Be More Interested Than Interesting
One of my core principles now is to be more interested than interesting. This means approaching situations with genuine curiosity rather than trying to demonstrate how much I know. When we’re truly interested, we ask questions that challenge our assumptions.
I should have asked more questions about banking practices during economic downturns. I should have wondered what would happen if lending criteria suddenly changed. I should have been interested enough to look beyond my comfortable assumptions.
Instead, I was focused on appearing successful and leveraging what I thought I knew about real estate and banking. I was trying to be interesting rather than interested.
Looking Deeper at Your Own Assumptions
I encourage you to examine the assumptions underlying your major life and business decisions. Ask yourself:
- What am I taking for granted in this situation?
- What would happen if this core assumption proved false?
- Have I personally verified this assumption or am I relying on conventional wisdom?
- What’s my contingency plan if this assumption fails?
This level of scrutiny might seem excessive, but I can tell you from painful experience that unexamined assumptions can destroy everything you’ve built.
The most dangerous assumptions are those that seem so obvious we don’t even recognize them as assumptions. They’re the water we swim in – invisible to us until suddenly they’re gone.
Building Resilience Through Questioning
Today, I approach every major decision by first identifying and questioning the assumptions behind it. This practice has made me more resilient and less vulnerable to catastrophic failures.
I’ve learned that true security doesn’t come from having all the right answers. It comes from asking better questions and being willing to challenge even your most basic beliefs about how the world works.
My financial collapse taught me that what we don’t know – or what we incorrectly assume we know – is often more dangerous than any external threat. The good news is that by becoming aware of our assumptions, we gain the power to test them before they test us.
Remember, it’s rarely the decision itself that leads to disaster. It’s the unexamined assumption behind the decision that creates the true vulnerability. Look deeper. Question more. Assume less.
Frequently Asked Questions
Q: What was the specific assumption that caused your financial downfall?
My critical mistake was assuming banks would always lend against the equity in my properties. I never considered that financial institutions might actually prefer taking possession of my properties rather than continuing to lend against them, especially during economic changes.
Q: How can someone identify their own dangerous assumptions?
Start by asking “what am I taking for granted?” before making important decisions. Look for beliefs you’ve never questioned, especially those that form the foundation of your financial or business strategy. Consider what would happen if these core beliefs proved false, and develop contingency plans accordingly.
Q: What does “be more interested than interesting” mean in practice?
It means approaching situations with genuine curiosity rather than trying to showcase your knowledge. Ask questions, listen carefully, and be willing to challenge your existing beliefs. When you’re truly interested, you’ll naturally probe deeper and discover the assumptions that might otherwise remain hidden.
Q: Can you provide an example of how questioning assumptions has helped you since your financial loss?
After my experience, I now stress-test every major financial decision by identifying the underlying assumptions and creating backup plans for if those assumptions fail. This approach has helped me build more resilient business models and investment strategies that can withstand unexpected market shifts or changes in lending practices.
Q: How do you balance questioning everything with actually making decisions?
The goal isn’t to become paralyzed by doubt, but to make more informed decisions. I focus my questioning on the most critical assumptions that could have catastrophic consequences if wrong. Once I’ve examined these and created contingency plans, I move forward with decisions more confidently, knowing I’ve addressed the hidden vulnerabilities.
