Wednesday, 11 September 2013

The chances of a disaster happening are actually lower than you think. How a proactive attitude helps reduce risks and uncertainty. How to protect yourself

What is the key to independent thinking and psychological stability? How can we protect our serenity against the negative bias of daily news? The following ideas can help you preserve your peace of mind:

The chances of a disaster happening are actually lower than you think


Most reported threats refer to events that, most likely, will never happen. For instance, every few years, newspapers discuss anew the possibility of an asteroid hitting the earth and killing millions of people.

Such calamity would be terrible, but you should not allow vague menaces to disrupt your tranquillity. Instead of losing sleep over risks, you should transform them into numbers or percentages. What are the actual chances of an asteroid hitting the town where you live? If the result of the calculation is one in a million, how much are you willing to worry?

You can easily protect yourself from major risks


Companies operating in consumer markets inevitably incur risks of civil liability. If you deliver products to millions of people, an accident will occur sooner or later, for example due to the failure of an electrical component.

No one is exempt from occasional mistakes and this is why liability insurance exists. Entrepreneurs who wish to limit their risks can purchase insurance coverage so that, if the worst happens, their financial losses will be limited.

Similarly, if you live in an area with a high risk of floods, you should insure yourself against damages caused by water. The rational approach to dealing with potential catastrophes is to reduce risks. By setting a limit to damages, you can protect your peace of mind against gloomy forecasts aired by the media.

When commentators predict a stock market crash, you can protect yourself by converting part of your investments to cash or by purchasing other assets, such as gold or real estate, whose performance is not correlated to the price of shares. In general, if you set a cap on potential losses, you will be able to stop worrying about catastrophes.

How a proactive attitude helps reduce risks and uncertainty


Uncertainty, more than any other factor, is what causes anxiety and fear. The feeling of not knowing what to do can render you insecure and lead you to make mistakes. Indecision causes physical tiredness and disrupts sleep at night. The solution is not to ignore risks, but to face them by taking action.

If your neighbourhood is becoming increasingly dangerous, you can choose between taking action or worrying yourself to death. Assess the problem and see what alternatives you have. Should you install an alarm system at home? Does the situation justify that you move to another part of town?

As soon as you make a decision, your preoccupation levels will diminish. People who lead serene lives tend to be incredibly proactive and organized. Those persons are always the first to adopt measures to prevent problems.


Beware of decisions made on the basis of biased information


This is a key factor for maintaining your peace of mind. Why would you want to read gloomy articles in newspapers and magazines? What's the point of devoting your time to watching depressing reports on television?

Negative information is highly addictive and, without a strong will, the habit is difficult to break. You have to make a firm decision and stop paying attention to distorted news. You have to make the effort to filter out the noise and focus on quality information.

In most cases, you can keep yourself well informed by spending a few minutes a day on a few selected websites. If you make yourself deaf to nonsense and discouragement, you will have more time for pursuing your primary objectives.

Protect your peace of mind against negative news by transforming risks into numbers, setting limits to damages, facing problems with action, and using only quality information. Every minute of anxiety that you eliminate from your life will add positively to your well-being.


For more information about rational living and personal development, I refer you to my book The 10 Principles of Rational Living

Text: http://johnvespasian.blogspot.com

Image by Mara 1 under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us

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