10 Smart Tips For Creating Personal and Financial Success With “Risk”
How “Risk” Is A Natural and Essential Part of Success
“I took risks very early in life, and I visualized the chance to grow as a human being, to grow to help my family. Risks are part of success. Just make sure it’s a risk worth taking.”- Patricia Garcia (Founder of Power Media Group Inc.)
I am truly amazed at how some people can literally risk their lives on dare-devil stunts! When I watch videos of people jumping off of mountain tops in Switzerland wearing only a squirrel suit, I am in awe! As they inch closer to the edge, I can feel the fear in me rising. My palms start sweating, my heart starts pumping a little faster and I feel something funny in my stomach. I think it’s called FEAR!
Finally, they take one last deep breath and take the leap! They go flying like squirrels at high rates of speed, brushing dangerously close to jagged mountain rocks. Any small mistake and they could end up as roadkill splattered against a granite wall!
They are taking a HUGE risk with their lives. But, the reward also has to be HUGE! They are experiencing a thrill of a life time! Imagine flying between snow-capped mountains with a beautiful valley below you. You can feel the wind blowing under your wings. You’re flying like a squirrel jumping from tree to tree!
All the while you are taking in the beauty of the landscape. Every minute that you are flying is a thrill! You’re experiencing one of the greatest adrenaline rushes! You’re living life to the fullest!
As the flight comes to an end, the flyer opens his chute and floats safely to the ground. As crazy as it seems for most of us, they would immediately go up and do it again! Most likely they’d do it again because the reward outweighs the risk. They love it!
Most of us are not dare-devil type of risk takers, but we all take risks in one way or another.
Risk is everywhere. We take a risk just getting out of our house. We take a risk driving on the highway. We take a risk opening a new business. We take a risk investing our hard-earned money.
Risk is a normal part of life. Some risks have the potential to ruin our lives. Other risks have the potential to create exceptional lives with unforgettable experiences. It all depends on whether you take “smart” risks, or “stupid” risks.
“Behold the turtle. He makes progress only when he sticks his neck out.”- James Conant
“Stupid risk” is jumping unprepared, not looking to see where you could land, not calculating the risk, and taking the wrong people’s advice. This applies whether you are jumping off of a cliff, starting a business, or trying to invest in the stock market.
“Smart risk” requires the person to weigh all the possible benefits and disadvantages of choices to determine which would produce the best outcome. It requires education, preparation, and planning.
Do you remember Evel Knievel the stunt performer/entertainer? When he made those death-defying jumps over fifteen cars on his motorcycle, he didn’t just go flying willy-nilly. He planned them carefully, trained for them, made all the necessary calculations for speed and altitude, and practiced them many, many times before he took the real jump in front of an audience.
In 2015, the movie “The Big Short” depicted the real-life story of Michael Burry, a hedge fund manager. The movie explained what led to the housing collapse and eventually “The Great Recession” of 2007-2008.
It would be an understatement to say that Michael Burry took a BIG risk. He could have lost millions and millions of dollars of his investor’s money!
Michael had been studying the stock market for years. He did some in-depth analysis of the housing market and determined that it was a bubble ready to pop. He decided to “short” the market. In other words, he bet that the housing prices would drop.
Many other financial analysts did not agree with him. However, after studying his financial charts and calculating the risks, he determined that it was a good bet. He could have lost it all!
What happened? To make a long story short, the housing bubble burst, the banks collapsed, housing prices went down and he made millions! His investors made a whopping 500% return on their money! This was all due to his education, preparation, and action.
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10 “Smart-Risk” Tips For Increasing The Probability of Success:
- Weigh the “pros and cons”. Determine what the positive or negative consequences might be if you were to take this risk. Put it down on paper. On one side write down the pros and on the other the cons. Imagine also the worst case scenario. Would it destroy you or could you live through it?
- Educate yourself. Study the risk that you intend on taking. What skills or competencies do you need? Do you need to learn some new skills before you take the jump? Do you require special equipment?
- Seek the advice from other risk-takers. Consult with others who have taken a similar risk before you. They can tell you where the danger is but also what the thrill is like!
- Research the Stats or the Odds. When I first get on a plane, sometimes I get a little anxious. But, when I review in my mind that the odds of dying in a plane are 1 in 16 million flights, my anxiety subsides. So, whether you are taking a flight, starting a new business, or playing Blackjack in Vegas, know your odds.
- Don’t take financial advice from your butcher! Be sure that you are taking advice from experts or persons who have experience in the area in which you are considering taking a risk.
- Don’t put all your eggs in one basket! Don’t give all your money to one individual, one company, or one investment option. How many people have you heard of that have lost all their savings because they gave it to a “Prince from Nigeria” or to a company that went belly-up?
- Use “Stop Losses”. Calculate ahead of time how much you are willing to lose. If you are investing in the stock market it may be 2-4%. If you are playing at the Roulette table in Vegas it may be that you risk $500 and no more before you walk away from the table. What are you comfortable with? Stick to it!
- Imagine the upside. When dealing with personal risk, think about how things might be better if you were to take this risk. How would your life change? How would you feel?
- Find ways to take small incremental risks. If you are thinking about starting a business, perhaps you could start it as a side-hustle. Don’t quit your job until your side-hustle can sustain you.
- Feel the fear and then take the jump! You’ve been “smart” and you have educated yourself, calculated the odds, and prepared yourself. Now it’s time to take action! Of course it’s going to feel scary but don’t let that stop you. When you succeed, celebrate!
Benefits of Taking Risks
- You will increase your self-confidence and self-esteem. This will lead to greater confidence in taking risks in other areas.
- You will gain new skills. When you go outside of your comfort zone, you will stretch and you will create a better, stronger YOU!
- You will gain greater financial rewards. Investing requires calculated risk. Getting a new job, starting a business also requires risk. Often times, these risks yield great financial rewards.
- You will be happier! A study of 20,000 subjects in Germany concluded that risk-takers tended to be happier.
So, whether you are jumping off of a mountain in Switzerland, investing in the stock market, making a career move, or playing poker in Las Vegas, be “smart” about it. Prepare and you will succeed. You will feel the fear, but do it anyway! Have no regrets!
“If you take risks, you may fail. But if you do not take risks, you will surely fail. The greatest risk of all is to do nothing.”- Roberto Goizueta, former president of the Coca-Cola Company
“Nature favors those who are sober, alert, intelligent and enthusiastic; most of all those who have the courage to take risks and who possess the will to succeed. She smiles on those who are ready to live hard and dangerously. Whoever refuses to take risks pays the penalty of loss of life in one form or another.”- Alexis Carrel
Start your journey to financial success by first developing your millionaire mindset.
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To your success,
David C Figueroa- Success Coach
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About the Author David C Figueroa
David C Figueroa is a psychologist with over 35 years of experience teaching personal development. An awesome success coach, and internet marketer. Now retired, he has refocused his goals into helping ambitious men and women to create exceptional lives.
