
This is an absolute gem of a framework I originally read in a Twitter thread. Later, I’ve seen it pop up multiple times on various podcast [talks by Tanmay Bhat](https://www.instagram.com/reel/DBVSYu0NLk4/).

What it means to me: all tasks can be put into 2*2 Matrix according to risk & reward.

![Risk-reward matrix showing examples of low and high risk vs low and high reward.](/images/writing/assymetric-returns.png)

The most important of all tasks are those that are low risk and high return. Examples: going on a date, attending an interview, etc.

There is nearly zero downside to such tasks, and the potential upside is unreal. You might end up marrying the person you went on a date with; you might find out about a concept that eventually lands you your dream job, etc.

Compare that to something that is high risk and low reward — texting while driving. The risk: you might end up in a serious accident; the only upside is that you’ll be able to reply to a text a few minutes sooner.

So I think it is important in life to think of risk and reward while doing tasks and to be more deliberate about choosing tasks that are high return and low risk, while avoiding or converting high risk and low reward tasks.

Some practical (most likely not reliable) examples of where I have applied this in life:

- I do not pick up work that is assigned to others at the workplace. It puts my own responsibilities at risk, and the only upside is a better relationship with coworkers.

- I avoid doing chores at home. Risk → I become too dependent on helpers and have a recurring expense. Reward → I have much more time for other activities like upskilling, etc.

- Streaming. Risk → I might create some content that is cringe to some set of folks. Reward → I learn something every day and build a large portfolio of digital content that (hopefully) signals I am a driven individual.

So I’d ask you to think about risk and return while picking up tasks yourself.


asymmetric returns