Balancing Risk and Reward in Your Job
We often hear risk versus reward discussions in the investment realm, but they can exist in our careers as well. Below are a few scenarios that may help to identify your tolerance to this type of risk.
The Short but Dangerous Job
Images of Sig Hansen and crew working their crab pots come to mind. These men often make significant amounts of money quickly, but the work can be grueling and loss of life is always a possibility.
The Far Away Job
Work assignments in distant locations often force the tradeoff between time away from family and higher potential earnings. What value do you place on seeing everyday life moments or tucking your kids into bed each night?
The Far Away Dangerous Job
A combination of the previous two types of jobs, an example of the far away dangerous job was covered in depth when myinvestingblog.com profiled a friend who was offered $290,000 per year to work in Iraq, performing the same job for which he was being paid $60,000 per year in the U.S.
The Startup Job
Working for a startup can get you in on the ground floor of a budding company. You may trade long hours and lower pay for company stock, which could potentially explode in value in the future. The downside is the possibility of failure for the business.
The Part-Time Job
Working part-time gives you more free time to spend with your children or to devote to other interests. For that freedom, you may have to give up more than just a portion of your potential earnings, as few part-timers are eligible for company benefits.
All of these examples present different tradeoffs. Depending on the value you place on money, time, and other intangibles, you might decide that any of these scenarios are worth it. A young, single worker would likely consider completely different jobs than an older married worker whose spouse’s job provided benefits.
Which of these scenarios would you consider?
Wednesday, December 24th, 2008 at 6:42 am