Many people don’t want to take risks but they don’t have any idea that if they didn’t took risk, they’re will encounter the same financial struggle story. In investing money, taking risks is one of the main factor why most people are afraid to invest.
Taking risks has rewards but the rewards are always proportionate to the risks you take. If you risks million dollars expect at least making million dollars. If you risk hundred thousands of dollars, then expect thousand of dollars. If you want to get rich, the first step is to face your fear in taking risk.See Also: Future Value of P5,000 Per Month Investment
Why You Shouldn’t Afraid of Taking Risks
You should not afraid in taking risks because it has rewards. Focus on the rewards not on the risk itself. If you focus on risks, your fear will eat you until you forgot your goal — to get rich.
Don’t be afraid in taking risk for as long as you have an idea on what you’re doing. Investing is much riskier if you don’t know what you’re doing. But if you have at least the basic knowledge or analyzation about what will going to happen to your investments, you should get afraid to invests.
In the first place, you invest because you want to make your money grow. Unless you are investing to lose your investment capital, then you have a valid reasons to be afraid in taking risk – to lose money.
T. Harv Eker said in his book Secrets of the Millionaires Mind that “Rich people play the money game to win and poor people play the money game to not lose”.
Why Taking Risks is Necessary Just to Get Rich?
Imagine you have a dollar bill in your wallet and it is the only money left in your wallet, someone wants you to give him one dollar and pay you back next week for ten dollars, will you give him your money?
The answer is it depends. If that person are capable to pay you back ten dollars for your one dollar, then give him your last money. If not, why bother. It is better to buy a food than to lose money.
Another example, if you have ten thousand dollars and an investment company has a promising return to its one of its best investment products; will you invest your ten thousand dollars? I think YES. Especially if the investment company is a reliable and can manage your investments well.
If You Want to Get Rich, take Risks
Getting rich is not a matter of chance, it is a matter of choice. If you want to get rich, choose to be rich. Do what rich people do and think like a rich. Having a rich mindset is very hard especially if you trained your mind thinking hte old way — think like a poor.
Rich people taking risks but they manage the risk. Poor people hate to take risk because they’re afraid to lose money. No wonder why poor people remains poor, it is because they don’t want to invest money. And if so, they just invest in a mediocre way.See Also: 7 Stock Market Tips and Tricks I Found Useful