What if you don’t like me? What if I vote differently? Dress strangely? Talk with an accent, have a diverse background or live a different lifestyle? Will you still be my friend?
Friendship comes with risks … risks that you’ll not be there for each other, that you’ll disagree or have misunderstandings, risks that you’ll think/vote/dress/look/live differently and, more risky, the risk that those differences will make a difference. Thankfully, friendships find the similarities and overlook the differences.
But, I hope you agree that friendship is totally worth the risk. It’s an investment of our time, our lives, our hearts. It’s a risk that pays off with kindness, support, love and friendships that bless our lives like no other relationships.
With friends, TAKE THE RISK. Make the effort. Look beyond the differences for the shared laughter and joy, for the common dreams, for the sincere support you offer each other. Take the risk. Share your lives.
With your finances, take girlfriend advice from wise friends like Girlfriend Guru and financial expert MIATA EDOGA who knows her stuff when it comes to RISK – of the financial/retirement/investment kind. Are you too worried about financial risk? Here’s her women’s wisdom:
On a financial news show yesterday the anchors were talking about risky financial markets. It made me wonder: what does “risk” really mean to the average person when it comes to investments?
A study was performed recently that showed that most people are risk takers when the market is going up. However, most people become risk adverse when there’s a threat of losing money. So, in other words, we all like big gains without any risk of loss.
Real risk is in the eye of the beholder. Sure, you don’t want to pretend that your investments are a casino game, but for some investors, risk is a part of the equation. Every investor has two components to deal with to reach their goals:
They need to save.
They need a return on their money.
If someone can’t afford to save very much for their goal, they can decide to a) increase the risk level of their investment or b) lower the goal so that they’ll reach it.
Most people don’t think about investing this way. Instead, they review a pie chart showing the amount of risk they’d prefer to take. Unfortunately, when it comes to goal setting, your preference doesn’t matter. All that really matters is the goal. If you work only from preferences and not from your end goal, how do you know if you’ll ever reach anything noteworthy?
I don’t mean to imply that your risk tolerance doesn’t matter. It certainly matters. If you’re taking on so much risk that you can’t sleep at night, then you’re investing the wrong way. Instead, once you find out that you can’t save enough money and can’t accept the risk of an investment, you should lower the goal to an acceptable level.
It’s okay to lower the goal sometimes.
Judy wants to own a house on Lake Michigan when she retires. After looking at her savings, she’s realized that she can’t afford that house. However, if she creates a bed-and-breakfast on a hill overlooking the lake, she’ll have income to help with the payments, a great view of the lake, and lower property costs. Sure, she’ll have to work, but Judy doesn’t mind that at all and is actually excited about the possibilities.
I often find that once someone finds that they can’t accept the risk of an investment, they find other ways. One friend of mine decided to start delivering newspapers at 4 a.m. so he’d have money to invest. He explained, “I wasn’t doing anything but sleeping at that time of day, and I needed the cash, so I decided to take on another job.”
Others, realizing they don’t like the risk of an investment, begin education programs. One friend, realizing that real estate would help her reach her goals, began reading everything she could on the subject. She was surprised to find that she could own a real estate investment trust rather than invest in properties. She’d never heard of a R.E.I.T. before. Sure, they’re still risky, but for her, she became educated enough on the topic that she felt comfortable with the risk level.
Often we think that there aren’t options when we can’t accept a level of risk. There’s good news in these stories: you can find ways around your risk tolerance without burying your head in the sand and saying “that’s the best I can do.” Learn to invest differently, find creative ways to add income streams, or reduce the goal.
MIATA EDOGA is the President and Founder of Abundance Bound, a 10-year old company committed to utilizing humor, inspiration, and lots of love to give individuals around the world the necessary tools to thrive financially, while keeping focus on the things they treasure most. Visit the Abundance Bound Facebook Page for your free copy of Financial Success for the Creative Soul!
Thanks Miata and thanks for being one of our Girlfriend Gurus! Check out her girlfriend advice on:
- Choosing Retirement Investments
- Avoiding the Money Fight
- Low Interest Loans Financial Advice
- Understanding Your Credit Score
- Why are you a Spender?
- Consolidation Loans – A Good Financial Strategy?
- How much to save for Retirement
- How to Buy a Car without feeling like dirt
- Pay Yourself First
- Financial success
- Saving money on your next getaway/trip
- Credit card advice on paying the minimum payment
By the way, we LOVE guest blogs here at Girlfriendology. Have a great girlfriend story to tell? Want to celebrate your fabulous female friends? SHARE! (And, we also have Girlfriend Gurus – check that out to be featured on Girlfriendology!)
More to check out – Facebook.com/Girlfriendology and Twitter/@Girlfriendology where we’re connecting with over 50,000 women (we block guys!) and Pinterest.com/Girlfriendology where we share visual inspiration and great quotes. More Girlfriend Friendship Quotes. & Did you see our INFOGRAPHIC on ‘What Women Want‘?