Risk.
Quite simply, risk is just another element involved in life. We make what we think to be rational decisions everyday. Those decisions are dependent on the amount of risk we are comfortable taking.
You weigh the odds, weigh the facts, weigh the setting-- which are all being factored in to your decision making brain to decide what to do about a problem. The basic solutions to taking care of a risk are to either (1) to totally avoid the risk or (2) to accept the risk.
By avoiding a risk, you avoid the consequences of the risk. You do not drink alcohol therefore you never have to worry about getting a DUI. You do not gamble therefore you never have to worry about losing your money to betting. However, you also never get your chance at millions ("Imagine what a buck can do" is the ongoing CA lottery marketing phrase). Where others may see huge loss, others may see huge gain. Marketers have the job of getting you to see the bright opportunities to certain risks, while advocates try expose the potential dangers of risk that may be a threat. There is just an ongoing tug-a-war between the two sides.
Accepting risk does not mean you have to accept the risk blindly. Managing risk is key to being able to get the most out of the accepted risk. The main example for this option is debt. We accept the risk of debt for the gain we get. We may be low on cash in our bank accounts and agree to take on the debt with the intention of paying the balance down over time. People do this all the time with cars, homes, and college tuition.
We all know what happens though when this risk is not managed actively. Relationships are destroyed, emotional stress occurs, and depression can be a result of debt problems. This is why people should be educated about debt and understand the consequences of having debt.
Wow I already typed so much. Aw man. I did not even get to dig in to the insurance point yet. I'll get to the next point next time. Until next time! Be rational and know all the facts behind the risk!
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