RISK AVERSION

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It’s easy to avoid risk so much that you make your life worse.

Risk aversion is something that everyone has. It’s a desire to not take a risk. It’s a preference for more certainty in life. And taking too many risks is dangerous. We all need some degree of confidence that things will turn out in a predictable manner to live a healthy life.

But if we look at every opportunity and decide not to take it when we realize that we don’t know how it will turn out then we will start to take less opportunities than is healthy.

And we’ll start to see even more uncertainty in the few actions we do take.

Because running away from uncertainty doesn’t give us more certainty, it actually makes us more uncertain of our remaining decisions.

Establishing certainty comes from choosing to make a decision over and over again. And as you build up your decision making abilities you gain confidence and an ability to take a risk.

Taking a risk is sometimes the safest thing you can do.


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