Risk; Price of Investment Reward
When some people hear of the term "risk," they will be quick to associate it with danger or to losses, but this is quite different in the world of investment and finance. In finance and even in personal growth, risk is not something that should be feared. As a matter fact, if you will grow in life and if you will achieve success in various fields of human endeavour, then you should be ready to embrace risks. This is because it will take risks to take you from where you are to where you want to go. However, even though you are to take risks, they have to be calculated, so that the step will not become a freefall.
If you take a look at the successful entrepreneurs, innovators, and investors you know today, you will discover that they are risk takers. Take Jeff Bezos for example, who has risen to become among the top 10 richest entrepreneurs. During the infancy stage of his career, he left a paid job which he was fairly comfortable at, and started Amazon right in his garage. Now, Amazon has become among the leading E-commerce platforms in the world. Imagine he did not take the risk, he may have still been on a paid "9-5 job" in one corner. When he took the risk, he did not know what the outcome will be, but be took it nonetheless, and it worked out perfectly well.
We know about the man Elon Musk and his numerous investments, and how he has also become among the top richest investors. When he started, it was not so. In fact, it was reported that he took his personal savings and invested in Tesla and SpaceX, without knowing what the outcome of the risk will be. The investment become successful and from there, he has raised capital for various other investments. Now, he also owns X (former Twitter). Beyond Jeff and Elon, even right in your community and within your neighbourhood, there are also lots of investors who have taken risks at some points in the course of their life. This can also include time, resources, energy, etc. At the end, it will be the risk that will make them who they are.
Among what you learn by taking risk, it teaches courage and helps you to grow. There are things that you may never learn, and there are heights that you may not attain in life until you have taken that very risky step. Okay take for instance; it took the risk of two men; Orville Wright and Wilbur Wright, to invent the first powered and sustained aircraft as far back as the early 20th century. Without taking the risk, they may not have been able to put heavier-than-air machines to flight. The risk you take today may be what will open you up to greater heights tomorrow. But much more than that, it might also affect the world positively in ways that you cannot even expect.
Risk forces you to leave your comfort zone. A lot of people have become too relaxed in their comfort zone that it has limited their advancement. The comfort zone may feel safe, familiar, and predictable, but it does not support growth. If a farmer does not leave his comfort zone to go and plant seeds simply because he does not know if the rain will come or not, then there will be nothing for him to harvest. But if he goes out to plant, even though there might be uncertainties he will face, but he will position himself for abundant harvest. In life, you have to take risks in order to get the success you require.
However, you should know that taking risk does not mean being reckless or careless. Being reckless is trying to jump into doing something without preparation, strategy and knowledge. While risk is based on knowledge, informed strategy, and courage. That is, you do not just take any random step, but you have calculated the potential result it may produce. One of the keys to effectively calculate a risk is to make preparations for the possible outcome, while being willing to adapt to changes as demanded.
While taking risks, do not be bothered about failure or worrying yourself about not succeeding, rather you should focus on what you want to achieve and the possible success from it. Even though it is not guaranteed, but you will feel better by knowing that your step is bound for success.
Thanks for reading
