Four reasons taking risks are necessary

Recently, I read about an economic theory called Greater Fool Theory. The theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants.

In other words, when something has a value there may be other people who believe it has a greater value and choose to pay the greater price. These people are called Greater Fools.

There are many uses and examples, of this theory, in the economic arena; but my mind drifts to examples outside of economics.

• America’s Founding Fathers, believed in a greater value for a nation free from British rule so they chose to pay a high price for it.

• Human rights leaders, believed in a greater value for the equality/equity of human-kind so they chose to pay a high price for it.

• Inventors and innovators have always believed in a greater value for their ideas so they have been willing to pay a high price for it.

So many people have chosen to be Greater Fools because they realized that the value was worth the sacrifice.

Many times, that is the case. In those times, the risk is worth it because it leads to the reward.

We are all after the reward. No one sets out on their life journey without wanting to be rewarded on the trip.

But often times, in order to get that reward we have to be willing to be the Greater Fool.

Sometimes risks are difficult for people to take, but I believe they are necessary if a person wants to grow and succeed.

Here are four reasons taking risks are necessary:

1. A variety of opportunities don’t come by following the status quo.

The status quo can only get a person so far. It generally garners the same results. It’s safe and secure, but if a person desires growth than opportunities are necessary. And opportunities come from taking risks.

2. Confidence can be displayed when a person steps out of the comfort zone.

Sure, a person can display confidence in many ways; but as a person steps out of their comfort zone they demonstrate their confidence with every step. They may not know what is going to happen, but they believe in themselves regardless of the result. That is confidence.

3. We learn from taking risks.

In my life, I have found that my biggest growth moments have been when I have taken a risk. Sometimes the learning comes from having to calibrate and adjust so that I can succeed in my endeavor, and other times the learning comes from reflecting and adjusting because I did not succeed. Whether through calibration or reflection, my growth would not have come without taking a risk.

4. A fear of failure can be overcome by taking a risk.

Failure can be a launching point for growth. Failure should never be the goal, but to fear failure ensures that massive growth (potentially, massive success) will never be realized. Every risk that is taken decreases a person’s fear of failure.

I try to look at situations and opportunities in my life (and situations and opportunities in the world) and see the greater value.

I want to be the Greater Fool because in those choice moments it could result in something more amazing than anyone could have ever believed possible.

[I would love to hear your comments and thoughts about this post. Use the comment section below or click here to tell your story.]