Earlier, we mentioned that in order to create wealth, you must understand the principle of you get what you give. Now, we will talk about risk and timeframe.
Now is it worth the risk? Does the investment fit for your timeframe?
Calculating risk is important because in order to earn or gain something of value, then be ready to invest something of value too. Calculating risk is not restricted to the business sense only but it is also applied in the everyday aspect of our lives. Life can be a gamble sometimes – there are times that our decisions also curtail risks and you have to make sure that you can carry those risks and their potential impacts.
And if you choose for bigger risks (and we cannot discount that other people have bigger risk taking personalities than you), you have to make sure that you have this word: CONTINGENCY. Otherwise, if you do not know how to take failures, it will be harder for you when all your plans go to bust.
And then there is the timeframe. When dealing with the timeframe, you need to make into an account if your investment seed is for the short term or the long run. In this way, you can set your expectations and goals on the kind of investment and return you would like to have.
Creating wealth is not easy as you think. So do expecting a return from what you have sown. But just like being a farmer, you need to have the patience and fortitude to see through the challenges of creating wealth, setting your expectations pertaining to your chosen timeframe and calculating risks as well as coming up with back up plans of your own.
In our next post, we will talk about taking your wealth to the next level – charity.