Loss aversion is a term that can be applied to many areas of life, but when speaking of your personal life it may be what is holding you back from the life of your dreams.
What Is Loss Aversion?
In psychology loss aversion in the concept that you would rather hold on to what you have rather than risk something new. It’s a term that comes from economics stating that you would rather risk losing $5 that gain $5—even if that $5 could lead to more. In your personal life you would rather stick with your current joy than risk losing them for the opportunity of new joy. But in your personal life there is no such thing as breaking even.
Why It Can Hold You Back?
Without risking the chance for new joy you can get stuck in a vicious cycle. Your current joy will inevitably fade and you may get stuck. And new joy isn’t equal to old joy as everything new opens our minds and hearts and helps us to grow. Without trying new things for fear or risk you hold yourself back.
You Can’t Eliminate Risk Anyway
We can certainly take a proactive approach in every area of our lives but we must not forget that there is no way to completely eliminate risk. The truth is most things are out of our control, with the exception of how we respond to what life brings our way.
Here’s to risking change to achieve your dreams!