Skin in the Game
Invest in your Life.
The term "skin in the game" is often attributed to the renowned economist and investor Warren Buffett, although its origins predate his usage. Essentially, it means having a personal stake or investment in an endeavor. It implies that being involved means risking your own money, time, or resources and therefore having a strong incentive to see it succeed. The phrase likely emerged in contexts where individuals had to risk something valuable to ensure their commitment.
So what does it really mean to have "skin in the game?"
While the phrase was popularized in the business world, "skin in the game" has been applied to various fields such as politics, sports, and everyday life. It signals that those with a personal stake in a situation are more likely to act responsibly and with greater commitment. The modern interpretation of the term has also been shaped by author and risk analyst Nassim Nicholas Taleb. In his book "Skin in the Game: Hidden Asymmetries in Daily Life," Taleb explores the concept extensively, arguing that having skin in the game is crucial for ethical behavior, effective risk management, and societal fairness.
It shows up in research too. An American Psychological Association (APA) study found that individuals who set personal goals with specific stakes are significantly more likely to achieve them. The research indicated that people who committed to public declarations of their goals and invested personal resources were 33% more likely to follow through than those who did not.
ACTIVITY: Questions for Reflection
Ask Yourself:
What areas of my life do I feel most engaged in, and why?
What personal or professional goals have I set for myself, and what am I willing to invest to achieve them?
How do I ensure that my daily actions align with my long-term goals?
What practices or habits help me stay focused and engaged in the present moment?
What hobbies or activities ignite my passions and interests?
Get in the Arena.
The concept of "skin in the game" ties closely with the famous quote by Theodore Roosevelt, often referenced by author and researcher Brené Brown: "It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood..." Good things happen when we take action. We should only ever consider criticism from those who are also in the arena.
Brené Brown, in her work on vulnerability and courage, highlights the importance of being "in the arena." According to Brown, true engagement requires us to show up, be seen, and take risks, even when there's a possibility of failure or criticism. She argues that it's through these experiences that we find meaning and build resilience. By having skin in the game, we become active participants in our own lives, embracing vulnerability as a strength rather than a weakness.
This perspective challenges us to focus on our own efforts and investments rather than the opinions of others. It's easy to criticize from a distance, but true growth and fulfillment come from being involved and committed, despite the potential for setbacks. By prioritizing action over fear of judgment, we create opportunities for personal and professional growth.
ACTIVITY: Questions for Reflection
Ask Yourself:
When have you chosen to be "in the arena" despite the fear of criticism or failure?
How did that experience shape your perspective and resilience?
How do you handle criticism from others, and how does it impact your willingness to take risks?
What steps can you take to focus more on your actions and less on potential judgments from others?
