Every day you step out the door and walk on the face of the earth, you risk your life. 

Who thinks of it that way? The ones who understand the true meaning of risk. Risk is nothing but not knowing what you are doing. Fearing that failure might await you on the other side of the door. Taking that step holds the power to transform your life, yet fear keeps so many people stuck in one place. But what if you could calculate your risk every day, prepare for it, and use it to your advantage?

I can help you figure it out by a simple formula, but first, let’s face our biggest fear.

Why Take Risks?

I am living a comfortable life. Why should I go to the jungle to camp? Dear friend, the universe has allowed you to see beautiful nature, that’s why. Think about all the moments in your life when you hesitated in taking your chance and eventually gave up. Now, think about the moments when you did. Which ones stand out more? You can only avoid taking risks in life if you avoid life altogether. There is no other way to do it. 

You must have feared applying for that job or learning to drive a car. But it was better than the regret of never trying. Salesforce was an alien concept in Jaipur (a city in India) in 2016 when I took the risk of starting a training company exclusively teaching Salesforce. Did it work? Yes. Was I scared to fail? Absolutely yes!

But if it weren’t for that risk, if I had not taken that leap of faith, I would not have been writing this piece to share with the world. Of course, I would still live comfortably, earning just enough for my needs. It is true that your life shrinks or expands in proportion to your courage. So, would you rather say, “I took the leap and learned from it,” or “I wish I had at least tried”? Regret is often heavier than failure, so take that risk.

How To Take Risks?

What are you really doing when you separate your expenses and savings at the end of every month? Calculating. Do that with your risks; you will never have to be afraid again. Measure your losses and gains while deciding and turning your risk into a calculated risk.

A simple example of this could be leaving your current career behind for something more fulfilling. Suppose you have studied finance all your life and now work as a banking executive. But your true passion is music, and now, after five years in the job, you want to quit and join a band as a guitarist. Wouldn’t that be a huge risk?

The first step in risk-taking is detachment. Detach yourself from the situation and view it objectively from a distance. You might have noticed that it is often easier to advice other people on taking a risk than to take it yourself. So to move past the fear of failure, guide yourself as if you are a 3rd person who has got nothing to do with it.

It just becomes easier this way. 

Calculate the Risk

You can define criteria and measure your gains and losses to ensure that your decision results in maximum benefits. If the benefits overpower the losses, then you go for it. Become a guitarist and follow your true passion. If the loss is far more than you had expected and you are not ready to bear such a loss, then you must forget about this risk, at least until the odds are in your favour. 

You can do this by using my risk calculation table. On one side, list your gains, such as financial gain, skills, satisfaction, achievement, etc. And on the other side, your losses, finances, time, faith, morale, and certainty. Now score each factor from 1-5, considering its impact on your life. For example, if you quit your job and start music, you will be 5/5 satisfied, but you only have 2/5 faith in your decision. 

Is it a Balanced Equation?

After the above exercise, you must have some clarity on whether your risk is worth taking or not. But to be more accurate and certain, use this simple formula. Add up your gains and losses and find the difference between their averages. If it comes out to be equal to or more than 2, there is nothing more to think about. Go ahead, and take the leap. If it is between 1 and 2, then you need to rethink. Prepare and become ready to tackle the consequences of it. And if the average difference is below 1, then be content and move on from it instead of dwelling on it forever. 

Acceptance

What if the risk turns out to be your worst nightmare? And it will happen. It is not possible to always have a perfect landing. Sometimes, you will fall face-first on a hard rock called reality, which will hurt too much to continue. It is important to accept the possibility of failure before you start. Trust your gut while making decisions, but don’t ignore data or facts; they help you stay practical. And in the end, if you have the hunger for it, your risk might turn out to be the most excellent choice of your life.