For many of us, the perceived risk of an action represents an essential part of our decision making. [For example, click here.] Consciously (or subconsciously) the level of risk becomes especially vital for important purchases. With this in mind, we examine several tips for better personal risk-taking.
From Rocket Mortgage: Tips for Better Personal Risk-Taking
In marketing, we differentiate between two perspectives to understanding personal risk:
- Actual risk represents the real risk that we face. As an example, based on empirical research, the actual risk of being killed in a plane crash for the average American is about 1 in 11 million.
- Perceived risk is our belief about the risk that we face. An example of this would be a person believing that air travel is more dangerous than travel by motor vehicle. But, the actual risk of being killed in a motor vehicle crash for the average American is about 1 in 5,000.
Risk-taking can be scary for some, as it may invoke the idea of change or the possibility of something going wrong. Inevitably, this can lead some to retreat from risk. But are you really doing yourself a favor by shying away from risks and change? Probably not. Change is the only constant. You may not have realized it, but we encounter decisions and risks every day, multiple times a day. Some of these risks are small, like trying a new restaurant, while others are life-altering, like deciding to start a new job or buy a home. Risks can bring great changes and new opportunities you hadn’t anticipated. In order to learn healthy risk-taking behavior, we talked to experts and looked at the psychology of risk-taking, how to take risks in life and some additional tools to help you become a better risk-taker.
Now, check out Rocket Mortgage’s infographic with ten tips