High Risk Generates High Rewards; Even Outside the Financial World
Nov 16, 2007 - Posted by Kevin Hsu
Invest your money in a money market, bonds, mutual funds, or stocks. How do you know which one is right for you? The general consensus is that it depends on your risk tolerance, profit goals, and sometimes even how old you are. When you are young (20s) you should have more of your money in high risk investments like stocks. As you age (30s-50s), you should gradually put more of your money in bonds and money markets. That’s the general idea financially savvy individuals usually preach.
These ideas extend outside of financial investing. One possible reason the rich are wealthy is because they were willing to take risks. People who work solely for commission give up the idea of (almost) guaranteed financial stability. But they have the opportunity to make more than people working solely for a salary. A salary based worker is capped at X amount of money every year (suppose you don’t get bonuses).
I have to build my risk tolerance, right now I am putting a lot of effort into doing things that I may or may not see a result for. I spend at least five hours a week, networking with individuals from the big 4 and other companies. My internship is taking time away from studying. What makes me uneasy is, when all is said and done, the time I’ve spent outside of studying may come back to haunt me. Of course it would be ideal to get top grades and still be able to work and network. In any event, I am going to keep doing what I am doing and put in whatever crap (is left at the end of the day) I have inside of me into getting those grades.