It seems like every day someone comes up with a new product, service, or business venture. I know a lot of people who’ve tried one or more of them before. I think most of us feel a little more like we know what we want but we don’t know how to go about it.
You know what? It’s actually okay to not know what you want. There’s no shame in not knowing what you want or don’t want. It’s just like finding out you don’t know how to drive. You don’t want to stop because you don’t know how, but you realize that it’s really not that important. You can just focus on finding out how to drive and you’ll find out how.
The problem is with most of the products we spend our money on, they tend to make us feel like we want something that isn’t really there. So we end up needing to look for it in places we dont really want to look. One of the most common cases of this, is people who have a certain passion for something but dont know how to start it. They start with a piece of jewelry or a book or a product and dont know how to make it the life of their own.
I would say the most common problem with most of the products we spend our money on is that they make us want them more than we actually want them. So we end up spending our money on something we dont really want to spend it on, because we have an unrealistic expectation that something we want has some magical power to change our lives. So we end up buying what we want and then never buying what we dont anymore. This is where the word “insurance” comes in.
Insurance is a type of product that basically says “if it happens, it happens.” There are different types of insurance, but the most common one is that it’s a guarantee of protection. So your car insurance covers you in case something happens to your car, or your house insurance covers you in case something happens to your house. Insurance companies make sure that they’re covering you long-term, not just until you die.
What we’re seeing with modern-day insurance seems to be a lot of the same thing: companies trying to keep you as a customer, but not having them pay out as much as they’re supposed to. This is especially true for the insurance of cars, homes, and other items that we’ve moved into over the years.
People seem to think if you wait too long to get it insured, then its going to go away, or at the very least, not be covered. It doesnt work like that. The problem is that insurance companies are all about “if you die, you get paid”. Weve seen this in the case of death that was caused due to a fire, which is not covered by insurance.
In the same way, death is a risk associated with moving into a home or a business or a car. Once we get the house insured, then we have to pay out a large amount of money and can get a new policy that will pay out even more. Insurance companies are basically looking to maximize their profit by making sure you are in a situation where you die.
In the same way, if your car dies, that’s not covered by insurance, but if you get it fixed, you will make a large profit. The same thing goes for a business, and even your home.
It’s basically a question of risk vs. reward. The more money you make, the more risk you run. The more risk you take, the higher your rewards. We have to be careful because we don’t want to buy a home or a car that has more risks than the house or the car is worth.