Loss aversion is one of the most well-known ideas in behavioral science, but that doesn’t mean it’s not misunderstood. This week, we’re unpacking why losses feel about twice as powerful as gains, and how that imbalance influences everything from investing and career choices to relationships and risk-taking. Loss aversion can protect us, but it also shrinks our world and keeps us in situations we need to outgrow. This episode offers practical ways to reveal loss aversion in your life, reframe what you think you’re losing, and redirect your energy to make better decisions.

Chapter Markers:

0:00 – What Loss Aversion Is and Where It Comes From

2:00 – How Loss Aversion Shows Up in Modern Life

3:10 – When Loss Aversion Makes Us Overly Cautious

4:25 – When Loss Aversion Becomes Invisible

6:55 – The Core Takeaway on Loss Aversion