How Relationships Are Like Investments

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Relationships are a lot like investments. Let me explain…

With investments, “There is no return without risk.”

“Your return in any investment is always proportional to the risk you take.” Betting against the risk of loss in hopes of profit is the price of achieving rewarding returns. In financial theory, risk-return tradeoff is the principle that high risk results in high potential return. While low risk, low return is possible, it is not profitable, and low risk, high return is often too good to be true. According to the risk-return tradeoff, investors render high profits only if the investment is subject to the possibility of loss.

With relationships, “There is no return without risk.”

As we progress through our twenty-something’s, the risk of opportunity and sunk costs may deter us from treading into potential relationship territory. Stakes are high and only get incrementally higher with each candle that reaches closer to thirty. Commitment with a capital C looms over our heads like a dark cloud, casting shadows over other more seemingly enticing pursuits. Pursuits like wanderlust, single-hood, career or education, which appear immediately promising. So we chase away commitment and gallivant from country to country without restraint. Each stamp on our passports, notch on the belts, promotion under our sleeves, and degree on our walls delays adulthood that much more.

And relationships? I’m talking about serious, committed, adult relationships.

They are rife with uncertainty. Horror stories and burned bridges further validate this uncertainty with a considerable degree of certainty.

But – “There is no return without risk.”

In the realm of relationships, incomparable rates of return can only be fully realized through taking huge, at times frightening, and blindingly risky leaps of faith. And what do we do if and when we lose said investment? Certainly not by bouncing back with a third-party stimulus, but with slow and steady economic recovery. By acknowledging that we will invariably win some and lose some. And most importantly, by viewing economic loss as capital gain.

Best,
Phoebe

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Related Articles:
Quora – “What Everyone Should Know About Investing”
TED Talks – “Why 30 is Not the New 20”
CNN Money – “Investing Your Money Basics”

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