TO TAKE RISKS OR TO TRANSFER YOUR RISKS: WHAT MECHANISMS ARE YOU EMBRACING ON YOUR FINANCIAL JOURNEY?
When it comes to financial decisions, thoughtful steps are not only what needs to be taken, thoughtful research is also of essence. For one, there’s no gains, all alluding to the fact that life is all about taking risks, for life itself is a risk. However, the onus rests on the one seeking to take a risk to make it very calculated in order to avoid a brash fall — one without remedy!
On the other hand, it becomes a very wise decision, having identified risks in one’s abode, assets or company, to transfer such risks in a bid to be safe when any loss arises. Let us break this down.
Investment, though full of risks, is undeniably one of the pathways to becoming financially free in life. As an individual, the starting point could be to develop a saving habit, but then, savings only give you a platform to take up opportunities for investments when such comes up. As such, it takes the ready, bold and determined to approach the thick forest of investment — in order to emerge a financial mogul at the end. This brings home one of my favourite proverbial lines spoken to me by my father during my teen age; “uneasy lies the head that wears the crown”.
Like I had earlier noted, life is full of risks; this we daily approach in one way or the other. It’s risky to invest, while it is also very risky to sit back and watch how life rolls by. It is risky to purchase assets in expectations of getting massive returns on investments, and it is equally risky to play the victim card, feeding from hands to mouth. And consequently, getting battered and dejected in life. Now, choose your referred your risk. To face the risks of becoming financially buoyant or the risk of remaining on the same spot for life after many years. Do you know what separates these two? No. It isn’t just about taking action, but being able to spot opportunities with their eagle’s eyes when they emerge, and taking the risks in a calculated manner.
Now, let’s delve into transferring your risks; shall we?
Let’s assume you took calculated financial risks and the blessings of the Lord found you, you became successful whether modestly or in an extravagant manner. How do you intend to sustain the assets and shimmering items you have purchased to make life easy for yourself and your family? This is because, while investment helps you build and multiply wealth, the things you have must not fade away just before your sight!
Your company/factory, house(s), farmland(s), vehicle(s), building and contents inside it like TVs, generating sets and other kind of electronics, including phones, money and much more, have to be secured from risks , like theft, fire, storm, breakdown, accident, strike, riot, and civil commotion. And these risks can easily be transferred through Insurance to enable you get indemnified in the case of loss or damage. With this, you wouldn’t be affected by any loss, as they are fortuitous in nature.
Truly, nobody prays to experience any kind of loss like a fire outbreak just like what happened during the week in Dosunmu market — Idumota Lagos, or accident while driving on the highway, but it is better to transfer such risk through the payment of premium which is only a minute of your asset value while you keep living your best life, going about your day-to-day business. This is because; it is risky to see all you have laboured for go down the drain thereby making you spend double or triple to get a new one or put such asset/company back to its original state. Sometimes, it’s very unattainable.
It is safe to conclude how a wise decision it is to transfer your risks to avoid having sleepless nights over things that could have been handled by insurance.
In fact, an Insurance Broker can be approached to provide you a pro bono service so as to ensure the right risks are covered, and help you get adequate compensation when any claim arise. Lest I forget, one very important risk you can transfer is sickness through health insurance/HMO because “health is wealth.”
Remember, whether you’re investing in property or safeguarding your health and assets, thoughtful decisions and the right insurance coverage play a crucial role in your financial journey.
In my coming letters, I’ll be giving you a breakdown of the different kind of insurance policies you can embrace to help transfer your risks.\
Till I write to you again, keep taking calculated risks.
Adekunle Adewunmi writes from Lagos, Nigeria.
