Ever been upset after something was taken away, even if you weren’t using it?
That’s loss aversion—a bias where losses feel twice as painful as the pleasure of a similar gain.
Psychologists Amos Tversky and Daniel Kahneman first introduced this idea in the 1970s. They found that people would go to great lengths to avoid a loss—even if it meant passing up a better opportunity.
One reader once said they were annoyed when Netflix removed over 1,800 movies. Ironically, they hadn’t watched or even planned to watch most of them. Yet the perception of losing something they had access to stung.
That’s how powerful the fear of loss can be.
Reframing, a mental technique where you shift your perspective, helps manage this instinct. Instead of seeing Netflix as a private library, imagine it as a museum. We don’t mourn exhibits that rotate out—we look forward to what’s coming in.
This principle applies in everyday Indian life far more than we realize.
🇮🇳 How Loss Aversion Shows Up in Indian Life
Loss aversion is woven into our daily choices. From money to marriage, our cultural context often makes it worse. Let’s explore some everyday Indian situations where loss aversion dominates our behavior—and how we can reframe them.
1. Buffet Meals: Eating Past Full
Scenario:
You’ve paid â‚ą899 for a buffet. You’re full, but you keep eating—”I paid for it, I have to eat it all.”
Reframe It:
You paid for access, not a calorie quota. Think of it like a movie ticket—you wouldn’t stay just because you paid if you weren’t enjoying the film. Respect your body over the bill.
2. Gold Jewellery as a Wedding Asset
Scenario:
Many families invest lakhs in gold jewelry for weddings—often worn once and then stored for decades.
Reframe It:
Instead of seeing gold as a lifelong asset, consider memories, experiences, or investments that grow over time. Reallocating this money to education, travel, or mutual funds may have longer-lasting emotional and financial returns.
3. Hoarding Old Items: Emotional Clutter
Scenario:
Old phones, mixers, clothes, and even furniture stay in Indian homes for years—“kya pata kab kaam aa jaye.”
Reframe It:
Letting go of an object isn’t a loss; it’s gaining space. Every item should either serve a function or bring joy. If it doesn’t, it’s taking up physical and mental room.
4. Job Security vs. Growth
Scenario:
The holy grail for many Indian parents: a government job. Safe, pensioned, predictable—but potentially stifling.
Reframe It:
Security can also come from skill development, innovation, and adaptability. A private-sector job may feel “riskier” but can offer freedom, purpose, and better income growth over time.
5. Career Regret: “I Already Studied This”
Scenario:
You’ve completed engineering but want to switch to filmmaking or psychology. The thought of “wasting” years of education holds you back.
Reframe It:
Past investment shouldn’t dictate your future. Your previous experience adds context—not chains. Career pivots aren’t losses; they are evolution.
🛠️ Key Takeaways: What You Can Do
Loss aversion is natural—but manageable. Here’s how to deal with it:
âś… 1. Awareness Is Step One
Recognize when your reaction to a “loss” feels disproportionate. Ask yourself, “What am I really afraid of losing?”
âś… 2. Reframe the Story
Switch your perspective:
- From “I’m wasting money” → “I’m choosing comfort/health.”
- From “I’m losing tradition” → “I’m creating space for personal meaning.”
✅ 3. Don’t Let the Past Trap the Future
The time, money, or energy already spent is gone. What matters now is whether continuing the same path serves your goals.
âś… 4. Apply the Museum Mindset
Like a museum exhibit, life’s offerings are always rotating. Don’t mourn what leaves—look forward to what’s next.
đź’¬ Final Thoughts: Letting Go Is a Superpower
Loss aversion isn’t just an economic bias—it shapes how we eat, spend, love, and grow. But once you see it, you can manage it. You don’t have to let fear of losing stop you from gaining something better.
So next time you feel bad letting go—of a job, an object, a tradition—remember this:
You’re not losing. You’re making room.
đź’ Your Turn
What’s one small “loss” that felt bigger than it was? Did reframing help?
Drop a comment or share this blog with someone who’s holding on too tight.