Risk taking is the staple of entrepreneurship. And it should be; you don’t become rich by “playing safe.” A good example – though a bit extreme – would be Steve Jobs. He loved to “bet his company” on something new. Be it the iPod or the iPad. And that’s what made Apple what it is.
Do you have an appetite for risk? When was the last time you invested in a small business, or stock market? If it gives you shudders, this guide is for you. We’ll teach you to use risks to your advantage; and yes, you can do it safely!
Why you should consider taking risks
The question you might ask yourself is – why take risks at all? Mightn’t we go slow but steady? But risk taking is more than you think. Not only it gives you opportunity to rise above the herd, but also make you a better man.
Here are few reasons that might make you think about risks, a bit more positively:
- Greater risk leads to greater rewards: This is the most obvious reason to taking risks: winning big. And when you replace foolish risks by thoughtful, calculated ones, you increase this probability manifold.
- You learn new things: Let us say, you take a risk by starting a business. You’ll surely learn about the nuances of business. So even if you fail, you still have priceless experience for your next venture that you never would’ve got otherwise.
- It increases your confidence: When you start a new business, or invest into stock market – you change every bit about you. You’re no longer a “be safe” man, under the shelter of your job. You become more reliant on your skills than your luck.
There is an Art & Science of taking risks safely
There are two types of risks: the foolish risk and a calculated one. The foolish risk is usually investing your emergency funds. Or perhaps mortgaging your home for your business.
You don’t have to use your emergency funds. And no, don’t compromise on your retirement savings. Unless you can afford to lose it.
Start by making a “risk-fund.” A part of your money, you save every month for your new ventures. So, when you’ve an idea for your business, emergency funds aren’t your only option. You’ve another portion of money, that you’re willing to let go.
Another thing is: when you invest, do so mindfully. The worst kind of risks are directly akin to gambling. Have reasons and tactics that increase your odds of succeeding. For instance: when you start a business, do so with a preparation.
And nobody puts this better than Benjamin Franklin: “By failing to prepare, you’re preparing to fail.” So, when you’re investing in a risky stock, don’t stop. But have a reason as to why you’ll succeed.
So that’s our primer on risk-taking. What do you think about risks? Let us know in the comment boxes!
#1. Review your Risk Beliefs
#2. Ask if they were “Hand me Downs” from other people or Brainwashing Campaigns “Advertising” images that don’t match the reality you want for Financial Freedom
#3. Change your Brain by taking action and start a new behavior, if you don’t like it you can change it. It is important to be engaged in the decision process of Risk Taking
Kat Mierswa, MA has several post-graduate degrees in Psychology and Business. She been a life-long seeker of abundance, wealth, and understands how the Brain affects your ability to create Money. Most of her clients have big money blocks and even bigger Money leaks, so she shows them effective tools to create the Wealth of “Their Dreams”!
June 16, 2017