We all like to play it safe. That’s why we make contingency plans, appointments and generally do anything to predict – or influence – the outcome of everything we start during the day. But sometimes playing it safe is not enough to ensure the long term welfare or financial independence we are working for. When opportunity knocks on our door, it always comes with risks that need to be taken – things that should not keep us away from them, or else we lose any chance of succeeding.
What is risk?
Basically, risk is a concept similar to “chance”. Boiled down to the basics, each action you take can have at least two outcomes – you either succeed in reaching your goals, or you don’t. In our everyday life, though, risk is not that simple – it’s more like a game of blackjack.
Imagine playing a round of blackjack at the Red Flush Casino. You choose your table, your stakes, your preferred set of rules, you place your bet and start playing – Red Flush offers you several variants of the game. The money you stake in each round is the amount you risk. You get your cards, take a look and decide what to do next – hit, stand or surrender. Just like in a real life situation, your decisions influence the outcome of the hand. You can risk hitting on 17, or even doubling down on your hand. Or you can play it safe and apply a basic (or advances) strategy. You take a decision, act on it and see the outcome. You might win the hand, or lose it, and in the long run still come out of the game with profits in your pocket, especially if you factor in the special promotions offered by Red Flush for you.
Whether or not you will take a risk is up to you to decide. Opportunities come knocking – it’s your job to:
1. Perceive them
Sometimes the opportunity comes from where you might not imagine. A friend, active in agribusiness, has observed that farmers often find it difficult to keep up with the ever changing crop prices. He built a startup on keeping them informed of the latest price changes. He invested quite a bit – but now he enjoys success.
2. Assess them
Opportunities are great, of course, but sometimes they come with risks that are simply too high. Let’s return to the blackjack analogy above – while you have a chance of winning the hand if you hit on 17, the risk to lose is too high. Asses the opportunity and be aware of all the risks before seizing it.
3. Decide to seize them or not
Keep in mind – sometimes the only way to find out how deep a pond can be is by jumping right into it. But be advised – never jump into a pond if you can’t swim!
Derek at MoneyAhoy says
This is a great reminder for me. It took me nearly 30 years to properly understand this, and I’m still not sure I have it down fully. Higher risk equals higher potential reward. If you live a “safe” life, the “rewards” can be few and far between.
Jayson @ Monster Piggy Bank says
An opportunity may knock only once. Thus, I always assess if it is worth the effort and I most of the time take a risk because there’s no harm in trying.
I don’t know but I find taking a risk very advantageous for everyone to do. That’s why if there is an opportunity, go take the risk.