Take Risks to Live.

  • By Paramananda Ponnaiyan
  • 03 Jul, 2020
Take Risks to Live.

Risk is required for rapid growth. Ofcourse risk comes with a downside. How much risk should you take ? How do we manage the downside ?

Choose Risks with great returns

Before taking a risk, you should assess the Returns the Risk can provide. To put things in perspective, driving a two-wheeler without a helmet or any kind of protective clothing is a risk. The only return you get is probably to look and feel cool for a period of time. From a returns perspective, this is paltry.

On the other hand, consider changing jobs. You enjoy a lot of comfort in your present job, you know how to get things done, you know poeple who can help with anything, you also have a reputation that serves you etc. In the new company none of these will be there. You will need to build a reputation, build your new network etc. Yet, the returns could be quite huge. A large jump in salary, new things to learn which will accelerate your growth, new people to get to know and expand your circle. There is definitely a good deal of returns available.

Consider your liabilities

The nature of risk is that if things go wrong you will be affected negatively. So before you take up a risk, consider your existing liabilities. What are the things that are dependent on you ?

Family expenses, House Mortgage, Food, Transportation etc. If the endeavour falls through, will you still be able to pay your liabilities?

When you are young, you have fewer liabilities, and so it is a good time to take on more risk for higher growth. The best example of this is when young people graduate. Instead of taking up a job in a big company, consider looking at less established businesses, like startups etc. In these places you will learn way more than in a big company but the pay maybe less. The risk is ofcourse that the company may fold, leaving you in the lurch.

Managing Risk

Life is risky. So you need to protect yourself. Insurance, Savings, Assets are all ways to protect yourself. Savings and Assets even allow you to take more risk because you have something to fallback on if things go south.

One of the best ways to manage risk is to setup up multiple sources of income. Try and collect Assets which will generate cash flow without your active involvement. An Asset is something that continues to give you returns after you purchase it. For example, if you write a book, you may need to spend time and money marketing it, but after that it will sell and keep on generating you money. Invest in companies that you believe in. The key here is money should flow in without active engagement from you. This will free your time to look at high growth opportunities.


Risk stirs the passion within us. This passion can drive us to accomplish great feats and make life exciting and fun. So make sure you are always taking some risk in your life.


You need to take risks to live an exciting and passionate life. Mind that you take stock of the returns and your liabilities before taking on more risk though!