There are many factors that affect risk tolerance, and everyone’s ability to bear risks is different. We need to choose appropriate products based on our own risk tolerance. On the other hand, we can also try to improve our risk tolerance. So, where can we start?

Income is the basis of everything

No matter how good the investment methods and channels are, they still need principal, and for most people, the principal of investment comes from work. income. Therefore, a stable and high-paying job is often the starting point for investment. A stable job can ensure that we have continuous cash flow to support daily expenses and various loan repayments, and there is still surplus; high salary can expand the remaining space. By increasing the amount of investment at your disposal, allocating family protection more comprehensively, using more funds to hedge potential risks, and reducing worries about family protection, the natural risk tolerance will be improved.

Age is a butcher's knife

When those born in the 80s began to pick up thermos cups, and those born in the 90s began to lose their hair crazily, we discovered that time takes away not only our youth, but also our growing Fragile risk tolerance. Things that were not problems before are now problems. The older you get, the more problems you have, and all kinds of problems arise. The risks are several times greater than when you were young, such as health risks, unemployment risks, bankruptcy risks, etc.

Especially as you enter old age, your health gradually declines and you are no longer able to work. Once risks arise, it will be a fatal blow. Therefore, it is very necessary to control foreseeable risks in advance and provide complete health and pension protection.

Different ages have completely different risk tolerances. When choosing investment products, you should choose more stable and conservative investment products as you grow older, and do not exceed your own affordability.

Strengthen your understanding of yourself and risks

Understanding yourself means understanding your own risk tolerance. Measuring risk tolerance requires considering more comprehensive factors. We can judge by doing a risk tolerance test questionnaire. For example, before investing, many platforms will let us conduct a risk tolerance test and then recommend suitable products based on the test results.

The awareness of risks means understanding the specific investment risks and how to deal with them. "Knowing ourselves and our enemies" is necessary to improve our risk tolerance.

Try to change the factors that affect tolerance

As income, age and other factors change, our risk tolerance is also changing. From this perspective, we can improve risk tolerance by changing influencing factors through personal actions. For example, income can be changed, so you might as well try to actively open source and increase your family's income to enhance your risk-taking ability.

Accumulate investment experience

For ordinary people, entering new fields always involves great risks. Therefore, veterans with more experience have relatively higher risk tolerance. Practice more and gradually accumulate investment experience, which is also a major focus on improving risk tolerance.

Therefore, for investment fields that you are not familiar with, it is best not to blindly follow the trend. You should first conduct research on your own. If necessary, you can also consult a financial planner to listen to their professional opinions.