Tag Archives: risks

Making Bets

Gambling seems to be everywhere these days.  The commercials for betting apps inundate my TV.  With the Super Bowl in Las Vegas (the casino capitol of the country) this year, the number of things you could bet on seemed to be never-ending….right down to the color of Taylor Swift’s shirt.  Casinos are popping up in shopping malls.  Sports betting is an app on your phone.  Lottery tickets are available from a vending machine at the convenience store.  It’s pervasive.

Betting on things is generally not the best idea.  It’s definitely not a solid plan for a stable income.  You should never bet money that you can’t afford to lose.  The lottery is a tax on people who are bad at math.  The odds are always stacked against you.  Yet that doesn’t stop me from occasionally buying a Power Ball ticket and dreaming of what I would do if I won several million dollars.  It’s not an investment strategy.  It’s a source of entertainment. I don’t do it often, and I go into it knowing I’m probably going to lose.

There are ways to make bets that are not necessarily detrimental.  One year I used my income tax refund to buy some stocks.  I picked a few companies whose products I used and bought 10 shares of each.  One of those companies was a DVD rental by mail company called Netflix.  Those 10 shares cost me $170, and I sold them several years later for a few thousand dollars.  That was a good bet, which funded the installation of central air conditioning in my house.  I don’t remember what the other stocks I bought at that time were….because they were not good bets.

There are more educated, less risky ways to bet on things.  My retirement fund is largely in stocks, but it is managed by people who do that for a living—people that do research and keep things balanced appropriately for where my risk level should be at this point in my career.  It’s definitely beyond my skillset.  But there is still some risk involved in anything that involves the stock market.  There’s still some level of betting involved.

One of the smartest bets you can make is to bet on yourself.  Every time you pursue something new, you are betting on yourself.  Maybe you are taking a new job.  Maybe pursuing a new degree or certification. Maybe starting a business. Maybe something as simple as cooking a new recipe for the first time. Every time you attempt something, you are betting on yourself.  You won’t always succeed.  But you are taking the risk and putting yourself out there. And the person who bets on themself is miles ahead of the person who is afraid to try.

Regardless of what color shirt Taylor Swift wore to the Super Bowl, there are good bets and bad bets.  But betting on yourself is ALWAYS a good bet.

Mistakes

This shirt recently popped up in my Facebook feed.  And I love it!

Everybody makes mistakes.  And every single mistake is proof positive that you are putting forth effort.  You are taking risks.  And from great risks come great rewards.  And sometimes great disappointments.  But if you never take the risks, you are guaranteed not to achieve the rewards.

There are a lot of risks involved with money.  And you always hope they lead to reward.  Should I borrow money to buy a house?  Should I buy a used car instead of a new one?  Should I buy stock?  How much should I put into my 401K plan? Can I take the lower paying job that I’ll enjoy instead of the higher paying job that I’ll hate?  Will the store brand product work as well as the name brand?  If I join the warehouse club, will I get my money’s worth?  Should I buy the extended warranty?  If I go to law school will I get a great job?

Every time you spend money, there is some level of risk involved.  You can’t predict anything with certainty.  And you will make mistakes.  It’s inevitable.  But mistakes, while they may feel bad at the time, teach us things. And mistakes are proof that you are trying.  The person who never tries never makes mistakes.  But they also never move forward or learn or grow.

Mistakes are proof that you are trying.  So keep making mistakes.  Keep trying!