What are you going to have for lunch?

‘Easy decision.

Unless, you are being treated to a very expensive restaurant in a city you are unlikely to revisit.  Then, the decision takes on greater significance and is much harder to make.

This is because of what psychologists  call “Behavioral Economics.”  Behavioral Economics states that

human beings experience loss at a higher level than they do gain.

Consider that you have a meter in your mind that measures satisfaction.  Right now the meter is pointing straight up at “0” (zero).  If you find $20 on the ground, your satisfaction meter may swing to the right and measure a positive 10.

If, however, you LOSE $20, your satisfaction meter will swing to the left to, perhaps, a negative 20!

Gain of $20 moves your needle 10 points, whereas, loss of $20 moves your needle 20 points.

Human beings experience loss more than they do gain.  That is why we fear making decisions, we are afraid of making a decision that will cause us grief.  Truly successful people understand this fear and make decisions anyway.  They know that very few choices are irrevocable and unchangeable.  They know that life is a batting average and that sometimes they will swing and miss, perhaps even striking out.  Other times, they’ll swing and make contact.

If you don’t swing, you’ll strike out anyway.

Trust your ability to make correct decisions.

More importantly, trust your ability to correct or even profit from incorrect decisions.

 

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