Can you evaluate 'Affordable Loss' effectively?

Adjustment is really a part and parcel of our lives. But how much adjustment can you really afford?

There exists a concept of affordable loss, which means ‘the extent of loss that one can put at risk and can adjust/ afford in order to achieve the overall objective, goal or any other opportunity’. This loss that we can afford could be in terms of money, time, energy, or any other resource. Unknowingly, we must have been already using this principle in our decision making and negotiations, yet a lot of this requires practical thinking and evaluation.


Affordable loss is useful in:

  1. Planning for your future