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Bring Financial Risk Into Perspective

One of the things that seem to hold the working classes back from investing to create wealth is the concern over investment risk.  While the risk of investing is something to consider, gaining a perspective on that risk is much more productive.  The thing that working people do not seem to understand is that risk is everywhere and that it is relative. 

Risk Is Everywhere

  • Working for money is risky because you can only hold one or two jobs for limited pay, either of which might go at any time
  • Working for money puts you at risk because it takes control of your finances out of your hands, and puts it into the hands of much less vested individuals
  • Earning as a reactionary measure is far more dangerous and costly than earning and financial planning (as in wealth creation)
  • Risk is affordable with a strong financial base
  • Investment risk is manageable through diversification and asset allocation 

Financial Risk Is Nothing To Be Afraid Of

The fear of financial risk is nothing more than the fear of money that is talked about in wealth creation.  Money makes us scared that we will not have enough, or that life-ending things will happen if we put ourselves and our own savings first in our budget.  Fear keeps the working class working and does not allow them the confidence to take a measured or covered risk, even though that is the key to wealth creation. If you really think about it, there is a lot more to be afraid of if you live your life by reacting to a need for money rather than creating the stream of money that can sustain you.

 Most people do live in a reactionary budget state—that is, they try to increase wealth when money is needed, after they are in mounds of debt, rather than create wealth first and then spend it (on whatever you choose). When you can gain a perspective on what is really risky as investment and wealth creation goes, you soon come to realize that the real risk is in doing nothing.  Put wealth creation first at the top of your list, and all other things will fall into place and correct themselves—money does have a way of solving problems!! 

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

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This entry was posted on Monday, March 31st, 2008 at 11:36 am and is filed under Creating Wealth, Financial Education, Financial Freedom, Wealth Creation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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