Here's an experiment: I hand you a crisp $50 bill.
Your eyes light up, already picturing the mountain of tacos you're about to demolish.
But then I say, "Oops, there's an error. You need to return $30."
You roll your eyes, mutter "dickhead", and reluctantly comply.
Now, in a parallel universe, I give you the same $50, but this time I say, "There's an error, but you get to keep $20."
You're still smiling at your Andrew Jackson, and you invite me to a taco.
This experiment happens in your head every other minute.
Prospect theory suggests that the sting of losing is psychologically about twice as potent as the thrill of gaining.
That's why you're more likely to blow those 20 bucks on travel insurance than to stash them in a savings account.
Don't believe me? Take a stroll through your YouTube feed.
Count how many "Avoid These 3 Mistakes" videos you spot compared to "3 Tips to Improve Your..."
Next time you're faced with a decision, talk to your brain and ask point-blank: Bro, are we chasing a win, or running from a loss?
The answer will determine how good that taco will taste.
See you on the next one! 🫶
Matias.
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