Take Off the Training Wheels!

It is impossible to become successful while always playing it safe!  So why not challenge yourself to become more comfortable with risk? Not sure? Maybe these wise words will convince you…

“Pearls don’t lie on the seashore. If you want one you must dive for it”~ Chinese Proverb

“If things seem under control, you just are not going fast enough”~ Mario Andretti

“Do the one thing you think you cannot do. Fail at it. Try again.”~ Oprah Winfrey

“Go out on a limb, that’s where the fruit is”~ Jimmy Carter

“There is only one way to avoid criticism; do nothing, say nothing, and be nothing”~ Aristotle

“If you are offered a seat on a rocketship, you don’t ask what seat. You just get on!”~Sheryl Sandberg

“A ship in harbor is safe, but that is not what ships are for”~ John A. Shedd

Taking calculated risks can bring previously unimaginable opportunities to both your career and your personal life. Okay, now that you are motivated, how exactly do you increase you comfort level with risk?

Acceptable Risk 

Consider the concept of “acceptable risks”.  Let’s face it, all risks are not “acceptable risks”.  So how do you decide? Hope is a great motivator but a lousy foundation for a strategy. You are much better off using a reality-based method to assess risk.  This is important when we face life’s decisions and in particular when we are assessing a financial commitment.

For decision-making, Consider 3 questions:

1. What is the worst possible outcome of this risk?
2. What will I do if that happens?
3. Can I live with things turning out that way?

If you can readily answer question number two, you are probably considering an “acceptable risk”.  

For financial risk, 3 questions matter most:

1. How much can you afford to bet or lose?
2. What can I afford to spend?
3. What am I willing to spend?

Don’t ever bet more than you can expect to gain in return on that expenditure. Keep in mind that any expenditure will change your ability to pursue other things.  This is where your willingness to spend should incorporate a broader perspective on the limitations that accompany the expenditure.

“Acceptable risk” will vary from person to person, but we can all benefit from pushing our boundaries from time to time.

I will leave you with a quote from the very recently departed Maya Angelou who said,

“I believe that the most important single thing, beyond discipline and creativity is daring to dare.” Maya Angelou

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