Have you heard of loss aversion? It’s a theory developed in the 1970s which demonstrates that by and large, given the choice, people would rather not lose something than gain something.
Loss aversion is often talked about in relation to economics. But you see it play out in all kinds of different scenarios. Some people stay in relationships that are destructive, rather than walk away. Others gamble themselves into a deeper and deeper hole, trying to win back their losses. Many, many people remain in a career that stifles and depresses them instead of making the leap to something different.
The pain of losing is more acute than the pleasure of gaining.
What about you?
Are there any areas of your life in which you’re having a hard time cutting your losses? Is there a job, a relationship, or a project that you keep investing time and effort into — in spite of the fact that your investment is no longer paying you any sort of return and is, in fact, costing you — ...
Went to an illegal backyard dinner last night. Illegal fun (including tequila) was had by consenting adults. Please don’t report us.
No live show today as I wanted to give my guys a four day weekend with MLK Day on Monday.
Anyone got good weekend plans?
A message from Dave.