Loss aversion

# Chapter 169

Loss aversion seems to be one that most every single one of my clients are struggling with, according to what they are writing me. Why do we have such resistance to sell the position? To keep what we have? To not sell and start over from a better position? To not sell a losing proposition and cut your losses? There are pretty much another several paragraphs of scenarios that I could write down here describing loss aversion. But surprisingly this is more a feeling than objective thinking! It is an emotional, not a rational attachment to whatever you are averse to losing or replacing. If you had someone help you work it through, they would likely see all the advantages to making a move.

Since I have about 12-14 of these situations in my life right now, I am pretty certain that you have one or two as well. Heck even my best friend who never writes me back, wrote me back because he is facing loss aversion in the decision about selling their house. And they have needed to sell that house for over 10 years now, because his wife has terrible knee and hip problems and can’t manage those stairs! I don’t think she has even been upstairs for years now. But he can’t pull the trigger. Let me list the reasons: its paid for, they have lived there for over 30 years, they have so many family memories in that house, its close to work, etc etc. And you already did it, thought of how easy it was to overcome each one of those objections, when its not your loss you are avoiding. Get someone to help you work through your loss aversion, and do and listen to what they suggest.