The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations, as a loss or as a gain. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented.

Every investor faces personal and professional problems.  The problems come in all shapes and sizes. They can be business-related, financial, physical, or emotional.  Although no one escapes problems, your perception of the problem will determine your response to the problem.

Unfortunately, no one has a magical formula to deal with them.  You can, however, implement certain principles to help you succeed.  At a glance, these principles may seem oversimplified, but don’t underestimate their power.  If you choose to use them, you’ll reap a harvest of achievement that will far surpass your efforts.  Here are five ways to solve your problems.

1. Be Responsible.  When something goes wrong or you have a problem, it’s only natural to immediately think of who made it go wrong. Who is to blame for the problem? Most often this makes the problem worse.  The person blamed, in order to exonerate himself or herself, promptly finds someone else to lay the blame on or with whom to share the responsibility for failure. It frequently turns into a shouting match of exchanged accusations.  “It’s all your fault…. “You did…..” “Yes, but you said…..” All too familiar dialogue, isn’t it?

Don’t blame your problems on others.  Accept responsibility for your actions.  It’s not what happens to you that matters.  It’s your response to the situation that matters.  The consequences of your actions and choices are yours. Choose wisely.

1. Be Proactive.  The worst thing you can do when dealing with a problem is nothing! The world is full of people with great intentions. Take action. Successful investors are not necessarily those who make the right decisions all the time when trying to solve a problem.  No one can do that. Once you have made a decision to take action, you will begin to attract the people and things you need to conquer your problem. 

Your ability to attract people and things with the right solution may not make sense to some of you.  Don’t let your lack of understanding sabotage your willingness to solve the problem. Take action.

2. Re-Act.  Take charge of your inner-voice. Something in all of us wants to do what’s convenient rather than what’s necessary.  It’s easier and natural for some to be negative rather than positive. The voice inside your head will tell you why you can’t solve your problem and why you don’t deserve to solve it.  You cannot solve your problem without changing your perception of the problem.

So how do you change your perception?

Change your thinking and change how you respond.  As simple as it sounds, changing your attitude toward the problem will change your perception of the problem.  A change in your perception will trigger the change in how you respond. You will solve your problems by responding differently; in a positive way, of course.

3. Believe in yourself.  Sometimes you are your own biggest critic when you allow your fears and self-doubt to stand in the way of your success.  A critical step to conquering a problem is to realize that the answer lies within you. Maturity and experience will give you the confidence that you can overcome any impediment. Problems are an asset.  Problems are character builders.  Improvements I’ve made in my life and in my business were the result of problems.

A problem can become your breaking point if you let it become the one thing that defeats you.  Alternatively, a problem can become your turning point if you choose to take action to address the problem.  You will never realize what heights you can reach in real estate investing or in your life until you stop blaming reality for what happens to you as you go through it.

Thomas Paine said, “The harder the conflict, the more glorious the triumph.” “What we obtain too cheaply, we esteem too lightly.” In the thick of the fight you may not believe it, but the more problems you conquer, the easier the process becomes. Your confidence will be self-perpetuating and you may come to realize you can conquer a sea of mountains.