Loss aversion can really affect how we handle our money. It’s that feeling where losing $100 feels much worse than finding$100 feels good. Because of this:

• Risk Aversion: We tend to stay away from risky investments, even if they could bring us more money.
• Conservative Spending: We might keep our cash instead of spending it on things that could help us earn more.

In simple terms, it makes us want to play it safe, which can cause us to miss out on some awesome chances. It’s surprising how our feelings can control our money choices!