The desire to win and the fear of losing money

People, in their decisions, act out of the desire to win and the fear of losing. The desire to win and the fear of losing money are two motivational engines of human nature. They represent the academic, modern form of the primordiality of motivation: “fight or flight!”. “Fight or flight” represent the two decisions that prehistoric man could make when he encountered an animal. Being seized by fear, all the blood in the body migrates to the extremities, to the limbs to strengthen them to be able to either fight the animal or be able to run away.

The desire to win and the fear of losing money

The desire to win motivates people to act. Hearing that they have a lot to gain, people choose that option even if it is a very risky one, to the detriment of financial protection. As you may have noticed, over time there have been companies, modeled after pyramid schemes, both in the financial field (CARITAS) and in the sales field where people buy products or invest money out of the desire to win, usually double, and are left with the money they lost; money that was either borrowed or saved. On the other hand, you may have noticed that few people have insurance-financial protection for their goods or for their health. And, most of the time, if they have it, they only have it if it is mandatory. If it is mandatory, they take the cheapest ones, those from companies that are not safe (but this is another discussion).

Thus, knowing the two basic motivations, the “financial experts” – consultants in speculative investments attract a lot of people by presenting fabulous winnings. And the Lotto also works based on motivation: the desire to win. The desire to win has no logical foundation. Although there is a 100% risk of losing and 0 or 1% of winning, people act, but not rationally. If they hear that there is a possibility of earning 100% or 200% from an investment in five months, people invest.

Between the desire to win and the fear of losing money, there is financial education

So that you are not easily tempted to lose money, rather than win, financial education is the buffer for a healthy financial life. Knowing the information from the financial market, the rules of the economy, you will no longer fall prey to the emotional temptation, to your desire to win. You may win, but not 100% or double in five months. There is the capitalized interest https://laurentiumihai.ro/puterea-dobanzii-compuse/ that allows you to equal the amount invested per year after seven years, and after eight years to exceed it. As you can see, however, it requires time, waiting, patience, which is emotionally difficult. In return, you do not lose. In time, you only have to gain.

If you hear about an investment in which you earn 100% in a very short time, remember the desire to win. It applies to all of us. We all function the same. Some are more driven by emotion, practically by illogical desires, others are more logical, but we must always be guided logically.

Fear of losing money

There are also people who are driven, in their actions and decisions, by the fear of losing. There are those people who, out of fear of losing, create reserves, rationally base their choices, protect their health, life, and assets in case… something happens that deprives them of those assets. These are the ones who invest and don’t expect to earn 100% per year. They want security, they want a smaller gain, but a gain, overall. They want to know that in 10 years they will have the money in their account. Usually, these people suffer, due to their pessimism, from not earning as much as possible (they are even followers of 4% instead of 10%), from taking full advantage of some investments, but, overall, they have a gain.

What do you choose for your future: earn 100% or are you more attracted to what you can protect?

Good luck in becoming aware of your desires and your money!