Often in life, we face decisions that involve some risk. Typically, we have to decide which path to follow, the safe one or the risky one. When the decision involves money, it can even get trickier.
The reality of most decisions is that the risky one is the one that will lead you towards the path of success and advancement. Still, given the risky nature, it could also lead you to failure. Ask any wealthy, successful individuals, they will tell you, they had many failures before they reached success.
If we sit back in life, always taking the safe road with our money, we may not have failures, but we also will not have any success. Sticking your neck out (or your wallet) is usually the only way to get ahead.
This does not mean you should take every risky opportunity presented to you. What it does mean is that you should carefully evaluate your financial decisions and take calculated risks.
Some good questions to ask yourself before you launch into a risky money situation are:
1. If this endeavor failed, how much money would I lose?
2. If I lost all the money I put out, where would that leave me?
3. Is there any risk of losing an important asset like my home or business?
4. Will this risk affect my career? In what ways?
5. What are the positive outcomes of this situation?
6. What could happen if I do not proceed with this opportunity?
In order to make calculated risks, you need to take some time to evaluate them. Any opportunity where you have to decide in a split second decision is not worth taking. To ensure that your risks are the least likely to fail, you need some time to research and evaluate.
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