Loss Aversion and Lifestyle Creep – How Behaviour Influences Saving
“For everything you have missed, you have gained something else.” (Ralph Waldo Emerson)
Don’t be biased towards short term loss
‘Loss aversion’, from an investment perspective, refers to our tendency to avoid losses over acquiring gains. For example, we all know that sinking feeling when the market isn’t performing – it’s so tempting to cash out and limit further losses. But that kind […]