Financial and business risk is unavoidable because there is risk in anything you do, including -- and especially -- doing nothing.

There's market risk -- the risk that adverse market moves will cause you to lose money.

There's opportunity cost risk -- the risk that you let a great opportunity pass you by.

There's interest rate risk -- the risk that you will try to be "conservative" by investing for income only to see interest rates go much higher while you're locked in at a much lower rate.

There's inflation risk -- the risk that your investments will loose value over time due to the loss of purchasing power.

There's business risk -- the risk that you will lose money in a business.

So choose your poison. Choose the kind of risk that you prefer because you can't avoid it.

In order to make money, you should be a little worried. Because if you're not worried, you're not risking enough. Adventure is part of what makes life worth living. So don't be afraid to take risks. In fact, if you want to get rich, taking calculated risks is absolutely necessary.

Don't invest in a way that makes you feel comfortable. If you play for meaningful stakes you're going to be worried. Someone said that worry is the hot and tart sauce of life. Once you get used to it, you can actually enjoy it. If you're not at least a little worried, you're probably not risking enough.

Of course, playing for meaningful stakes does not mean that you should be reckless and ignore sound money management principles. It simply means that it's hard to become a successful investor if you're making small bets in order to sleep better at night. You have to risk enough for it to be meaningful but you also have to preserve your capital if you want to stay in the game.

And don't over diversify -- the kind of diversification that is recommended by many financial planners who say to put a little money here, and a little over there, and a little somewhere else, until you're spread out all over the place. You may not lose much, but you're not going to become a successful investor either. Over diversifying also means that it is tough to get rich in bonds, CD's, and other fixed income investments.

Conventional wisdom says to not put all your eggs in one basket. But my experience is that truly successful people do the opposite -- they put all their eggs in one basket and watch that basket like a hawk.

So to achieve financial freedom, take risks. Make it meaningful -- meaningful enough that you'll may be a little worried. But you'll be living life to the fullest. And, who knows, you may end up being very successful.

And, above all, enjoy the journey.

Copyright 2005