Risk is part of life. Everything we do carries some risk. Eating, drinking, walking, sitting, driving and even doing nothing! In fact, doing nothing is the biggest risk, since you are on the receiving end, where as you are at least to some measure in control or affecting what happens to you when you do something!
Knowing about risk can result in one of two reactions. We can be so aware of the risk and so scared of losing, that we become paralysed and do nothing – and inadvertendly taking the biggest risk!
Or we can be so risk averse that we play so safe, trying to limit or prevent losses, that we cannot win and then lose anyway!
Since risk is part of life, we need to acknowledge it and try to understand it. I think it is part of the problem – we vaguely take note of risk, but we don’t define it or understand it. We just hope for the best, and when we lose, we are upset.
Where does this lead us? What are the risks affecting your wealth and your efforts to create wealth right now? What causes the risk and how does it affect you?
Times like we are experiencing right now is the time when a lot of people will grow much wealthier – they use the risk factors to catapult them to new levels of wealth. They grow their wealth with the help of the risk!
The secret is to find someone who can help you to do the same. Is there a way that you can protect your wealth and at the same time create more wealth? In other words, can I keep my shares, but still make money if they drop in value? How can I cover myself against non-paying tenants? How can I buy more properties while the prices are low? How can I make money from the drop in property prices?
The info is out there – quite often free! But don’t be scared to ask and pay for good advice!