The fear of taking a risk and experiencing loss or failure tends to hold us back. We’re not saying to throw caution to the wind and do something crazy without evaluating potential consequences, but it’s important to recognize that human beings are naturally averse to loss. In our minds, the pain of losing is more powerful than the potential to achieve gains.
How does this foray into psychology connect to your finances? Quite simply, one thing we are most afraid to lose is money. But here’s the irony: when we make emotional decisions and act irrationally in an attempt to avoid loss, we can lose even more. Just ask any investor who has sold stock when the market dropped and missed the recovery, only buying back in when the markets are high again.
What’s the solution? We know we need to invest to grow our money into a nest egg that will sustain us in the future, but how do we do this in a way that doesn’t strike fear into our hearts?
Enter Riskalyze. Watch the video for details!