As a new arrival to the UK some years back, I was taken aback by how big the insurance business is here and how most people purchased insurance for virtually everything ranging from mobile phones, household equipments, to life as a whole. It was not until I undertook the health economics module as part of my masters in public health program that I understood the reason for this. Simply put, humans (most) are risk averse, and are willing to continue to pay to protect themselves even from an event that has a very low probability of occurring. However, look at the flip side of the coin and it might change your entire perspective. And that is: the insurance company makes money (from you) by taking on the risk that you are unwilling to take.
I thought long and hard about it and concluded that one of the most important reasons for many not achieving their goal of creating more wealth is the inability to take risks. You need to understand that with great risks comes great reward and with no risk comes no reward. Nothing comes to him/her who never dares to achieve anything. The ability to take risks is one thing that is common to every successful person especially in the area of business. So why is it then that most people can’t take risks? There are many reasons, but it all boils down to one reason: The fear of failure.
I think the fear of failure is the biggest reason many people don’t take risks. The fear of failure is the reason many will not invest even in profitable ventures, the fear of failure is the reason many will not quit their jobs and start a business even though they know they should. The fear of failure is the reason many will not risk the good life for the best life. Fear paralyses, it strips a person of the power to take control of his/her future. Understand that failure is an event. The fact that you failed at something does not make you a failure. As a matter of fact, you only truly fail when you do not attempt anything. Fear is a natural emotion, you may not be able to completely suppress it, but you can decide to act in spite of the presence of fear. Simply, the more you train yourself to take risks, the less your fears will be able to hold you back.
Here are a few tips on risk taking. It might change how you perceive risk and energise you to begin to be a risk taker:
