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Financial risk-taking is a bold yet nerve-wracking endeavor. But every millionaire or billionaire today will tell you that risk-taking was, and still is, part of their repertoire when they were starting their journey. But how do you differentiate the reckless type of risk from the smart ones? Here's 5 examples of smart risk-taking that will help you become a millionaire.

Don't Buy a Car, Yet

Many young people work hard to buy a car. They feel ownership of a car cements their position in adulthood. However, car ownership may actually cripple a person's financial capacity by barraging him/her with high tax and maintenance costs. Everyone knows cars are a liability rather than an investment. If you wish to become a millionaire, it is smart to put your car purchase on hold until you become financially well-off.

Look at your Current Career

Is it bound to get better or is your job a dead-end? A $1.50 raise every 2 years can be a compelling reason to stay, but there may be more lucrative and equally secure job positions out there that you have yet to consider. If you’re current job is your main source of income, transition from a full-time to a part-time position so the financial impact is small enough to shake off.

Risk Present Pleasures

Living below your means won't turn you into a millionaire overnight. But over time, it will accumulate into considerable savings, which will ultimately allow you to invest more and grow your wealth faster. Rather than spend money right after you earn it, allocate a portion of your monthly income to savings. Change your spending habits as well by buying cheaper, generic brands and pre-owned electronics, appliances, and furniture.

Risk Money to Build Connections

Having the right connections can serve as the gateway for new financial opportunities. This route doesn't even have to be costly. Set aside a budget for attending seminars, social gatherings, and events that can put you within earshot of key guests who can help you in your journey towards becoming a millionaire.

Procure Risk Management Solutions

For businesses, every facet of the business presents some magnitude of risk that is worth looking into. Hiring a professional company like Settlement One can help you gauge all types of risk involved in your business. For instance, credit solutions offered by the company makes precise consumer risk decisions with cost-efficient reporting solutions that can easily be incorporated into your business.

Becoming comfortable with risk and identifying situations where the risk is worth the potential reward are both vital skills to becoming a millionaire. It will help you construct the right investment portfolio and find the most lucrative opportunities.

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