Loss Aversion: Why We Fear Losing More Than We Enjoy Winning

I once turned down a $40,000 freelance contract because I was afraid of losing my $80,000 salary. The math was simple: take the contract, it would take 3 months, that’s $160k annualized. Way better than my salary. But my brain didn’t see “$160k potential.” It saw “giving up the guaranteed $80k.” The fear of losing my steady paycheck was stronger than the excitement of potentially making more. I said no. The person who took the gig finished it in 2 months, got referred to three more clients, and now runs a six-figure freelance business. ...

May 27, 2024 · 14 min · Rafiul Alam