Why Is Taking Some Financial Risk Important?

No matter where you are on your financial journey, controlling your finances is one of the most important things you can do for your future.

While it’s challenging to break the cycle of living paycheck-to-paycheck or find money to invest when you’re supporting kids or helping aging parents, building your own financial house must be a priority.

Unfortunately, you can’t just save money to build long-term wealth.

While it may seem like the safest way to get ahead is to keep increasing deposits to your savings account, your money won’t be making much money, especially if your account is with a traditional bank.

You’re also risking your money’s future buying power to inflation, even if you have a high-interest online savings account.

That’s why it is essential to consider taking more financial risk — to achieve a greater return.

If you understand your risk tolerance and already have a diversified portfolio that aligns with your financial goals, you probably don’t need this article.

But if you consider yourself risk-averse, conservative with your finances, or anxious about investing and losing money, we urge you to keep reading.