fbpx
U

Is The Risk Worth The Reward?

June 27, 2014

path

Brian dives into what it takes to be successful in business, finances, and your career, and how that success relates to the risks you take. He covers the habits that seem to drive successful people to push the envelope, and how those are the people who are willing to take risks more often in order to accomplish their goals. He also discusses why people tend to take the easy road and settle for a life that they may only be content with.

So why is it that we, as humans, are typically risk averse and our fear makes us take the road most travelled, the easy way out, and make decisions that feel most comfortable? Margie Warrell, author of the article Take A Risk: The Odds Are better Than You Think, identifies a few similar actions that influence our behavior. Here is what she reports:

  1. We over-estimate the probability of something going wrong.
  2. We exaggerate the consequences of what might happen if it does go wrong.
  3. We under estimate our ability to handle the consequences of risk.
  4. We discount or deny the cost of inaction, and sticking with the status quo.

“Humans are wired to be risk averse” – Margie Warrell

Brian takes it a step further and outlines steps to take in order to take more risk responsibly, and how to begin understanding and conquering risk or your fear of failure. Take that first step, fine tune your priorities and try something that may be out of your comfort zone.

  1. Learn the difference between a calculated risk and a gamble.
  2. Create a plan of action and put a time-line together.
  3. Save money and resources to give your “risk seed” a chance to grow and succeed.
  4. Be prepared to pivot if necessary.
  5. Take a moment to celebrate your successes.

Brian, a huge Steve Jobs fan, took the opportunity to quote the man himself. As it turns out, Jobs seems to know a thing or two about taking risks.

“The greatest artists like Dylan, Picasso and Newton risked failure. And if we want to be great, we’ve got to risk it too.”

“Everything around you that you call life was made up by people that were no smarter than you, and you can change it, you can influence it, you can build your own things that other people can use.”

– Steve Jobs

If there was ever a poem that directly relates to a podcast topic, it is The Road Not Taken, by Robert Frost.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I –
I took the one less traveled by,
And that has made all the difference. 

– Frost

 

Most Recent Episodes

Dave Ramsey vs. The Money Guy: Which Strategy is The Best?

Dave Ramsey has an incredible legacy of helping folks get out of debt and take control of their financial lives. We agree on a lot of things, but there are a few points of contrast. In this episode, we’ll discuss differences between The Money Guy Show and Dave Ramsey...

Top 4 Financial Mistakes We Saw This Year! (2022)

We saw some wild financial mistakes this year during the bear market. From making extreme changes to portfolio allocation, chasing the hot dot, and using too much leverage, we’ll talk about some of the biggest financial mistakes we saw in 2022 in this episode.   In...

How Millionaires Build Wealth! (With Dave Ramsey)

Join us for a very special episode as we welcome personal finance radio host and influencer Dave Ramsey to The Money Guy Show! There’s so much misinformation out there about building wealth. We had the pleasure of having a great conversation about how millionaires...

Do These 4 Things with Your Finances BEFORE 2023!

There are unique financial opportunities available at the end of the year - especially this year with the market down. In this episode, we’ll talk about what you need to do with your money BEFORE 2023! In this episode, you'll learn: What you need to do with your money...

How to Win When the Financial World is Burning!

Lately it’s felt like the financial world is in chaos, with rising interest rates, a falling stock market, and high inflation. Let’s talk about how to focus on what you can control and how to minimize the time spent worrying about what you can’t control. In this...

Financial Advisors React to RIDICULOUS Money Advice on TikTok!

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

Loss Harvesting: Why Wealthy People Love It (And You Should Too!)

Tax-loss harvesting: what is it and should you be doing it? In this episode, we’ll cover everything you need to know about tax-loss harvesting, including whether it makes sense for you, how much it could save you in taxes, and how to eliminate the downside of loss...

The Market is Crashing! (Where Should You Put Your Money?)

The stock market has not had a great year so far. You might be asking yourself, “Since the market is crashing, where should I put my money now?” In this episode, we’ll discuss how to invest when the market is dropping and how to make the most of your money. In this...

Will Rising Interest Rates Tank the Economy?!

The Federal Reserve is raising interest rates to combat inflation, and many are concerned about how it will affect the economy. In this episode, we’ll discuss what rising interest rates means for your wallet and how to make the best of it. In this episode, you'll...

How to Be Wealthy By Age! (Can You Catch Up?)

How much does it take for you to meet your retirement goals by age, and what are some common traps your peers fall into? Learn more about how to be wealthy, mistakes to avoid, and exactly what a little extra saving can do for your retirement income. In this episode,...