Inspiration For Internet Entrepreneurs

Thursday, May 18, 2006

Personal Challenge – Defining risk

The following is my definition of risk in my own words. As an Internet entrepreneur, you must know the difference characters in financial risk.

“Financial risk comes in many different characters. One character would be relying on a paycheck that requires you to work every month. This could cause problems if you ever get injured and unable to work. In other words you would be red lining your finances. Another bad character would be having debt to pay every month. This is even worse because it brings in absolutely no income and sits in your liabilities eating your money. Both of these bad characters are much riskier than these good characters like owning assets that generate cash flow every month or spending money on your financial education such as, books and seminars. Understanding the difference between the bad characters and good characters in finances is vital in having financial freedom.”

Now you should write a paragraph defining risk, so you can completely understand what your inner thoughts are on risk. Lets just say you should understand it so you can defeat it.


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