We all accept a certain amount of risk. Getting the risk equation right isn’t easy though. Sometimes we’re way off and that can have serious consequences. We owe it to ourselves and those we’re responsible for to be good risk managers.

If you took too much risk once, chances are you’ll do it again. So even if you got lucky the first time, you’ll probably lose what you gained (or the equivalent) another time. Unless you improve.

We speculate a lot, without realizing we’re doing it. We tend to believe we’re thinking and speaking factually most of the time. And the times when we know we’re speculating, we tend to overestimate the probability that we’re right. Cleaning up this type of thinking is needed to become better decision-makers.

Know the price you’re paying. Including the opportunity costs. The health costs. The relationships costs. You only live once, so make wise decisions. Dumb ones will make you unhappy.