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Health And Wellness

Cut Your Losses in Love

geekly.co.uk

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Relationships take a lot of time and effort to become successful and fulfilling. Much like investing our finances, many factors must be considered. Oftentimes, we are blinded by what seems like a good investment on the surface, but we fail to take the time beforehand to consider all of the possible outcomes. Before we know it, we have sunk all of our assets (emotional and physical) into something that will never provide us with a profitable return.

Our time is among the most valuable assets we have in this life. Unlike money, we are given only so much of it and it can ultimately never be recouped. When we utilize our time for something that does not pan out the way we expected, it becomes difficult to turn back and refocus our efforts. The more time and effort that is contributed to our desired goal leads to a cognitive bias that results in poor decision making. As this goal seems to slip further from our reach, we are fooled into thinking the only option is to contribute more towards the desired result. Failing to see the bigger picture, we may develop a hyperfocus on an unattainable outcome.

The resources we have already spent on a potentially bad decision should never be the motivating factor to continue in our efforts. Before we know it, we could end up past the point of no return. Stuck in a position where our assets are continuously drained in the effort to recoup what we have already lost.

This is no different than gambling in a casino. Expecting to hit the jackpot, you quickly lose your initial bankroll. You may go as far as taking out a cash advance on your credit card to recoup what you have already lost. Before you know it, your initial investment is gone along with whatever money you borrowed in the effort to make the profit that you had aimed to leave with. This ultimately leaves you in a position much worse than where you found yourself after your initial loss. In hindsight, it would have been much better to cut your losses and leave the casino as quickly as possible!

Evidence of this phenomenon can be found across evolution in both the animal and human kingdoms. Science and history have proven to us how inefficient this natural tendency can be. This evolutionary trait could have possibly served a valuable purpose at some point in our history, but in a modern world, it no longer serves us. We must utilize our intellect in these situations to avoid making emotional decisions that may only lead to more losses.

If we find ourselves in a “bad investment”, it would be wise to assess the situation from a wider perspective. Oftentimes it is better to eat your losses, withdraw your assets, and begin to refocus on a new objective. Yes, we may lose out on something that seemed promising in the beginning, but we can take what we have learned and start at square one. As future opportunities arise, we become more equipped to fully assess the situation and make wiser decisions about where to invest our physical and emotional assets.

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