In my last post I wrote about risk levels and the choices we make in areas of our life. My premise is this: some risk is good. Too much and too little can lead to unmanageable consequences and stagnation in life. The trick is to pick the right amount of risk for the areas of your life that need it.
Examine Your Life
When I examine my life, I see areas where I’ve neglected to move forward, and others where I’ve moved forward too quickly. I feel I’ve stagnated in my finances, and let money management slide over the past year. This has resulted in no savings, continued poor credit, and increasing bills. That could also be considered too risky behavior, in that I invited negative consequences by not being more conscientious. I feel like I made the correct decision to finally come out of the closet. That was risk aware. I was also risk aware by pursuing a promotion at work, since I knew the benefits and consequences of such a decision and pursued the role knowing what I was getting into.
Those Areas We Forget
If you’re like me, there are areas where you are hesitant to expose to risk. Or maybe it’s just a lack of attention. We can’t pay attention to everything at once, right? So if you’re like me, you may pay attention to what’s easiest to manage. But avoiding risk also means avoiding innovation and, ultimately, progress. Part of life is maturing, right? How can we mature if we don’t grow? How can we grow if we don’t change the way we think, the way we handle situations, the way we interact with others? If we don’t change what we know and what we do with that knowledge? If we don’t make the world a better place?
…so…what is risk?
Most definitions of risk I’ve found involve one key concept: uncertainty. Risk implies that there is a potential for negative consequences. In a financial market, risk is the potential for financial loss. There’s also, of course, the potential for gain. Risk is an uncertain outcome, the possibility of disaster.
I found an awesome post about risky behavior and whether risk is “good” or “bad” over at, of course, “RespectRisk” : http://respectrisk.com/risk/57.html. The author splits risk into constructive and destructive. The potential reward of the risky behavior is an opportunity / reward, known as an “opportunity cost.” Interesting, right?
How risky is your behavior? Could calculated risk be the key to changing your life and the opportunities in front of you? What’s stopping you? How about -
Applying for the job you don’t think you’ll get, but you never know
Asking for the raise
Asking that cute person out
Saying “YES” to yourself
Investing in the business opportunity
Moving to freelance work
Having a kid
Not having a kid
Moving across the country
The choice is yours. This life is yours. Make it happen.