Fear of taking risks

Do you have a fear of taking risks? You must have an effective risk/reward strategy in order to succeed in matters of money – and yes, that involves taking risks.

You Must Take Risks In Order To Succeed In Life

If you are afraid to take a risk, you may be missing out on some of the best opportunities that could be available to you. Certainly, playing it safe can help give you a perceived sense of peace, but remember: No pain, no gain…or to put it another way: No risk, no reward. If you never take a risk, you will always have to be content with a minimal result. Your fear of taking risks will keep you from the best results. This is why you need to have an effective risk/reward strategy, and take calculated risks. Wouldn’t you rather go for the gold? You cannot win if you don’t play, so why not take a risk once in a while? I am always interested in taking a calculated risk, if the risk is reasonable, and the reward is desirable. I do not let a fear of taking risks interfere with my desire to succeed.

I think the biggest problem with risk is that people tend to forget about the fact that by not taking a risk, you are losing out on some rather substantial potential. Think about how your life could have been different if you had bought that super performing stock when your friends did, or if you had chosen a different career path, or taken the risk to say hello to that attractive someone across the room. The safer path is usually, quite frankly, the least rewarding and the most boring. I am not suggesting that you should take stupid risks, or risks that would likely result in severe consequences. I am merely stating that sometimes in life, you have to be willing to step out of your comfort zone and take a chance on something.

The most important thing to remember about risk is that you must analyze the risk/reward scenario. In other words, take a look at what you are risking losing, versus what you are potentially able to gain, and weigh this out carefully. Ask yourself these 6 questions when considering taking a risk, and this should put things into perspective. Don’t let a fear of taking risks alter your decision.

#1. Can you, and are you willing to, lose whatever is at stake?

#2. Is the reward worth the potential loss?

#3. Is there a more efficient or less risky way to obtain the reward?

#4. Are there are other potential “snowball” effects one way or another? (for instance, if you take a risk and lose your job, will this cause you to lose your home, etc).

#5. Are you fully aware of the worst-case scenario?

#6. Do you have a backup plan/exit strategy in case the worst-case scenario does occur?

If you think about these things going in, you should be able to better assess whether a risk is worth taking or not. The bottom line is this – you must take risks in order to reap the rewards. Don’t be shy about taking a risk once in a while. It could mean the difference between reaching your goals, or falling short.