You've probably heard the phrase before, "Fortune Favors The Bold," but do you actually live by it? Time and time again, we are told by loved ones, mentors, teachers, and the like, that we should be courageous, follow our dreams, take chances, live life to the fullest, and so forth, but does anyone listen to these wise words? The reality is that the majority does not, and an even more shocking reality is that those mentors, teachers and loved ones likely do not follow their own advice either. Why is this though?
The answer I think is quite clear. First, People fall into traps where they internally exaggerate the downsides, and they downplay the upsides of taking a specific risk. Second, people are also very shortsighted, and as a result they look at what the immediate effects of a specific action are, and they forget about analyzing the long term effects.
The fact is though, the majority of financially successful and powerful people in life took and continue to take tremendous amounts of what everyday people refer to as "risk." It is important to note that when I say risk, I am not referring to poorly calculated or ridiculously risky behavior, rather I am referring to those risks that are calculated, thought out, and understood. It would be a poorly calculated and ridiculously risky behavior if you were to take your life savings and wager it all on a hand of black jack. Why? because we know the odds are not in your favor. It would be a calculated, thought out, and understood risk to invest in real estate in an area that is growing rapidly. Why? Because while you could lose your money in the real estate market, the chances that you make money are greater than your potential loss, thus it is worth the risk (yes this makes many assumptions, upon which you must do your own research).
In the past it was harder to assess worthwhile risks because data and other information was not as easily accessible, but nowadays we can quite often analyze whether or not we are taking an intelligent risk or an unintelligent risk. Furthermore, now that we do have access to so much more information, we can see much clearly the effects of our inaction versus are action. For this reason specifically, it is more risky to not take calculated risks. The next time you are in a conversation with someone concerning this topic, and they mention how "risky" something is, let them know that it is in fact quite the opposite.
I hope you choose to take less risk everyday, if you know what I mean....
FORTES FORTUNA ADIUVAT
By Rocco Turzi