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Tag Archives for loss aversion

The Real Reasons why a New Habit Fails to Stick

According to research, 81-92 % of resolutions fail. That’s a lot of new habits that fail to stick.

To create or stick a new habit (or the better option; replacing an old habit) is hard because you are effectively re-wiring your brain.

You brain has developed nice connections (neural pathways) between an existing behaviour and a reward. Over time, that connection has strengthened and gone from a thin path to a sturdy connection Continue reading →

Loss Aversion and Habit Formation

 

Loss aversion is our tendency to prefer avoiding a loss over receiving a gain.

Loss aversion explains why you sit through a terrible movie purely because you paid for the ticket.

You don’t want to waste money, you want to avoid a feeling of loss. If you put money on the line, you will be motivated to follow through in order to avoid losing the money.

It’s a powerful psychological motivator, thought to be twice as powerful as Continue reading →