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What is LOSS AVERSION

Aug 17
1 min read

Most people don’t realize they’re running from loss rather than chasing SUCCESS.


That’s the power of a term called Loss Aversion because the pain outweighs the pleasure. Losing $100 feels worse than the pleasure of gaining $100.


Real life examples:


  • Staying in an outgrown job

  • because leaving feels like losing security.

  • Putting up with relationships that are draining or toxic

  • because walking away feels like losing time, history, identity.

  • Holding onto bad investments

  • emotional, financial, personal

  • to avoid admitting, “this didn’t work.”


The take away:

Loss aversion doesn’t just influence decisions... it distorts reality. So here is a good reminder: Short-term: Loss aversion can protect Long-term: Loss aversion limits success


 
 
 

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