Calculated risks can bring a great reward. In this week's Arista Advice, we discuss taking calculated risks in our financial and everyday lives.
Hello, welcome to Arista Advice. A few weeks ago, my awesome wife and I went to a family reunion, and 10 of my 12 siblings were there with our spouses, our children, and it was a wonderful time in Sun Valley, Idaho. I remember years ago going there and boy, have things changed. The week prior, Bill Gates, Elon Musk, and many others, the billionaires, were there, and it was fun to visit with people who'd been there when they were there.
But on the last day we did something that's a little adventurous. Kathryn, my wife, loves paragliding. Loves it, loves it, loves it! So I said, "Okay, let's go." I prefer riding my mountain bike or riding my road bike, but we went paragliding. There were some basic figures that these amazing, talented, licensed professionals were following - the departure time, which direction they took off in, how fast the wind speed was, what the temperature was, and how long to glide, and what direction to glide in.
Here are some wonderful ways to compare that to financial lives. There are five things that you need to be aware of in your financial life.
Here is the hierarchy of financial needs.
Down at the bottom is the cash flow and basic needs: food, housing, transportation, daily expenses.
Second step up is the financial safety: having the emergency funds, having insurance, defensive instruments in place when the unexpected happens. I asked my paragliding pilot what happens if our 'chute is impaired, and he says, "Don't worry. I have a backup 'chute." I said, "Fine. I'll jump off a wonderful mountain at 9,500 feet elevation and run off a cliff, as long as there's a backup parachute," and he had it ready.
Number three is the accumulation of wealth. How much risk? How much needs to be put aside, and what are you aiming for?
Fourth is where does that financial freedom begin? What is the long-term care, the retirement savings, the children's education the vacations, and the discretionary income become applicable, and fifth and final: What's the legacy or the charity that you want to help others and give to others?
I thoroughly enjoyed flying through the sky of Sun Valley Ketchum, Idaho. at 6:10 a.m. It was a beautiful scenery. There was a great reward for the calculated risk that my wife and I had ventured out that morning to do. We took lots of photos, and it was a wonderful morning.
So can be the same with our financial freedom, if you follow the steps, work with professionals, have calculated risk, and calculated formulas to get you where you need to be. You also can soar financially with your wealth and capital.
Hope you're well. Have a great week. Please remember to go to AristaWealth.com to get other videos, tools, tips, and resources to help you live a life of significance, and don't forget to subscribe, rate, and review and share with others.