Our education system, be it primary or in High School or graduation, teaches us the basics of do’s & don’ts. The stark difference between the positives & negatives, rights & wrongs. It is more hypothetical where it cites plenty of examples to prove what is absolutely hazardous & what is tried & tested method. It encourages the kids to go for the secure method which is bound to give results, in short term. In other words, educational institutes choose to play safe for the well-being of their students & their family.
Is everything hypothetical in real life?
But in real life is everything this black & white? Do we always need to keep in mind what our schools & colleges have taught us or the hypothesis or rule to be followed in every circumstance? If that would have been the case, then there wouldn’t have been any failures of Walt Disney, Mark Zuckerberg, Albert Einstein & the list goes on. Then there wouldn’t have been any risk involved in any of your decisions. And as it is said, the lesser the risk you take, the smaller the return you get! So isn’t it better to take up calculated risk at times with the hope of a greater yield. After all we are human, and hence hope is what keeps us going.
More risk, more gain
To take the risk or jump into the cold water, we need to accept the fact that there will be mistakes in the journey. If anyone has not done any mistake in his/her life, I can vouch that he/she isn’t growing enough. Education systems don’t teach to commit mistakes and learn from them and evolve. This is where the kids, students lack the risk taking mindset and hence they themselves hinder the path to success and growth.
Financial risk & its ramifications:
Financial risk may cost you humongous amount and hence it is advisable to go for a calculated one. While investments, buying stocks, ULIP, mutual funds etc one cannot assess the exact return or whether the return will be substantially high or not. It depends on the volatility of the market. But since risk is involved, return is also equally attractive. One can go for a trusted financial adviser to make investments or buy stocks. But if you play safe and avoid taking financial risks, the money you will make & save will also be lesser than your contemporaries.
As you grow up, there will be lot of real time, practical scenarios that you need to handle at that very moment. This definitely requires knowledge & analytical skills, but not exactly similar to the classroom case studies or the theory we are taught. Educational institutes can give you a flavor of the real time cases, but there is no learning if you don’t face that on your own. There is no growth unless you assess the criticality, consequences of failure & ramifications of the decision. You may fail once or twice or thrice, but in the long term you will gain the insight to succeed, to tackle the situation.
Similarly in financial sector, you may lose your money once or twice, you may not get the return as expected, but that will help you analyzing where you went wrong and eventually aid you to shell out your money in the right sector at the right time.
Money is precious! We do need to gauze & analyze multiple times before investing in something. Even after that, certain unavoidable risk stays involved. Do take that risk! It’s either a gain or lose in financial market. If you lose, learn & invest accordingly in future. And if you gain, stay confident & come up with new ideas/sectors of investments to have a diverse portfolio because the return is magnifies in such cases.