The best way to understand the probability of taking action on anything is the amount of confidence you have. Preparation is a vital moment in the possibility of taking action. Since humans are so easily distracted by the day to day, we can easily go from a moment of determination to the tendency of just thinking about it.
The question we must ask ourselves is:
Does taking action outweigh the risk of not taking action?
We can understand this dilemma with a simple risk versus reward exercise. (For the financial savant’s of this newsletter this is also called a Cost Benefit Analysis.)
Draw a box on a sheet of paper like the chart below. Fill in each box to reflect the cost and benefit of being active versus being inactive. Compare them and ask yourself if the cost of being more active is worth it or not to you.
You can use this same idea for many applications in your life. Just change the factors at the top of the graph to what every two variables you want them to be. It’s a helpful tool to build confidence in your decision making ability.
The outcome of our decisions will always and forever be indeterminable. What is determinable are the risks and potential rewards that come with our decisions.
