Personal Finance - Part Two
"Expand the bandwidth of your perceptions and see where you reach in life."
'Success involves taking calculated risks.'
- Calculated risks, can be either investing for the long term in an index fund or the gradual weight loss of 5kgs over a year with a better diet and exercise.
- With calculated risks, you have a vision about where you want to be and a roadmap to get there.
- You increase the odds of success by researching a risk-taking behavior (e.g., investing).
- Developing and implementing an action plan,
- Remaining focused on your goals, and anticipating and addressing obstacles along the way (e.g., stock market downturns).
- Success comes from taking calculated risks and either achieving your goals or learning from setbacks.
- Risk-taking indicates that you have confidence in your ability to succeed but also accept the possibility of failure because mistakes are a fact of life. Even if you fail, however, risks can often be considered a "success" if you learn from the experience and resolve to do better the next time.
- Take a risk to implement at least one behavior change to improve your personal finances.
Karsanbhai Patel came from nowhere to create "Nirma" detergent powder about three decades ago. He showed Hindustan Unilever and others that an unsatisfied group of people lived below their radar who wanted cheaper but effective washing powder. Nirma went on to become a legendary success story.