Everything is Risk

Risk applies to nearly every endeavor we make when it comes to making money.

Lower-risk endeavors produce less value when they succeed, but they succeed more often. Higher-risk endeavors produce more value but succeed less often.

Want to have very little investment risk? Invest in a savings account at a bank and receive very little reward.

Want to have extreme risk? Place a bet at a casino or on the outcomes of specific sporting events. If you win the return is exponentially greater. But you're not likely to win that often.

If you want a steady income, trade your time and exchange for a salary with a company (less risk). If you want more rewards, start a business (more risk). You're a lot less likely to lose a job than you are to fail at a business.

That is the beauty of risk and reward! You would be crazy to take high risks at EVERYTHING, but you shouldn't be surprised that those who typically do the best financially have taken on more risk to get there.

Sometimes you NEED to be riskier if you want to achieve the outcome you desire. Other times you can achieve the outcome with what you already have.

As I look at the outcomes I desire, I need to take more "risk" to get there. And I'm excited about the possibilities.