Making Choices and Taking Risks

Imagine you are running a business and you have an opportunity to take a low paying client.

Should you take them on?

There are many downsides to it, but you should decide based on where you are in life.

If you are starting out and if a low paying client is the first opportunity you got, then take it.

Also, $1000 may have the same value for one person as $100,000 for someone else.

All the choices in life are not about money but that’s a reference point that most of us can relate to.

This is about your choices in a particular moment. Where you are, should not define who you can be or how big your goals can be.

When making choices in life it is okay to risk, but over a longer time we should try to make choices where they may be risk but downside should be much smaller than the upside. That way we don’t risk losing big or giving up any big advantage that we have built for ourselves.

That is why real estate is considered a good investment in most markets. If you do it without a lot of leverage. It can’t evaporate overnight and over the long term it will appreciate.

For the same reason if you have to take big professional risks, take them early in your career, and later if you have one or two success in your bag make big bets.