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Friday 04 August 2023 14:46:50 GMT
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🚨Learn to master the psychology of money, link is in my bio🔗 Think back to the last time you almost lost something essential, your phone, your wallet, your passport. The panic was instant, overwhelming, and far more intense than the joy you felt when you first got those items. That’s Loss Aversion in action: your brain reacts twice as strongly to potential loss as to potential gain. This bias is deeply evolutionary. For early humans, losing resources could mean death. That wiring persists today, so while gains feel good, the fear of loss dominates our decisions. Research by Daniel Kahneman and Amos Tversky shows losses are psychologically about twice as powerful as equivalent gains. Yet, most people (and most businesses) market gains only: “Get fitter,” “Earn more,” “Feel better.” They ignore the stronger lever. If you want to persuade, flip the frame. Don’t just highlight what people gain, make them confront what they’ll lose if they don’t act. A fitness coach could say: ❌ Weak frame: “I’ll help you lose weight.” ✅ Strong frame: “Every day you delay, you’re adding fat that becomes harder to burn later.” By triggering loss aversion, you don’t just sell a product, you sell urgency, commitment, and immediate action. 👉 If you don’t learn how to use these psychological triggers, you’re leaving money on the table every single day. Sources: Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. Quarterly Journal of Economics, 106(4), 1039–1061. #psychologyofmoney #lossaversion #decisionmaking #behavioraleconomics #moneymindset
🚨Learn to master the psychology of money, link is in my bio🔗 Think back to the last time you almost lost something essential, your phone, your wallet, your passport. The panic was instant, overwhelming, and far more intense than the joy you felt when you first got those items. That’s Loss Aversion in action: your brain reacts twice as strongly to potential loss as to potential gain. This bias is deeply evolutionary. For early humans, losing resources could mean death. That wiring persists today, so while gains feel good, the fear of loss dominates our decisions. Research by Daniel Kahneman and Amos Tversky shows losses are psychologically about twice as powerful as equivalent gains. Yet, most people (and most businesses) market gains only: “Get fitter,” “Earn more,” “Feel better.” They ignore the stronger lever. If you want to persuade, flip the frame. Don’t just highlight what people gain, make them confront what they’ll lose if they don’t act. A fitness coach could say: ❌ Weak frame: “I’ll help you lose weight.” ✅ Strong frame: “Every day you delay, you’re adding fat that becomes harder to burn later.” By triggering loss aversion, you don’t just sell a product, you sell urgency, commitment, and immediate action. 👉 If you don’t learn how to use these psychological triggers, you’re leaving money on the table every single day. Sources: Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. Quarterly Journal of Economics, 106(4), 1039–1061. #psychologyofmoney #lossaversion #decisionmaking #behavioraleconomics #moneymindset

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