Lisa notes

What is loss aversion?

Loss aversion is our preference for avoiding loss more than our preference for acquiring gain.

It hurts to lose something once it is ours. We’ll work harder to keep from losing it than we would to acquire it in the first place.

Here’s an example of loss aversion.

If someone gives you $15 as a birthday gift, you’re pleased. But it won’t compare to the grief you’ll feel if $15 flies out the window of your car.

If you own a $50 vase, you might refuse to sell it to someone offering $75. Yet if you saw the exact same vase in the store, you might not buy it for $25.

In general, once we own something, we become possessive. The ratio of pain from a loss is almost twice that of joy from a gain.

Why does this happen?

Our bias leans toward safety. When measured against each other, threats weigh heavier than opportunities.

“For an organism operating close to the edge of survival, the loss of a day’s food could cause death, whereas the gain of an extra day’s food would not necessarily cause an extra day of life.”

This old saying applies:

A bird in the hand is worth two in the bush.

We simply hate losing things we already own.  

Why is loss aversion bad for us?

Loss aversion causes us to cling too tightly to our things, our thoughts, our money, even when we need to release them. We fear losing what we have. And the more we have to lose, the more fear we have of losing it. Our attachments can make us feel vulnerable and anxious.

Loss aversion operates from a scarcity mindset. It perpetuates stinginess instead of generosity, not only with material things, but also with relationships and ideas. The longer we are in a relationship, for example, the harder it is to let go, even when it’s unhealthy.

We’re more comfortable with the bad we already have, versus the possible good we’re uncertain of. We are biased to believe this:

“Better the devil you know than the devil you don’t.” 

How can we manage our loss aversion?

As with the other biases, become aware that loss aversion is a real thing. Notice when it’s being used against you, such as when a streaming service offers you a trial month for free, knowing that once you try the service, you won’t want to let go of it.

Also be willing to change your perspective about things you already have.

For example, when you’re cleaning out a closet, ask yourself if you would buy this blouse today if you saw it in the store. If not, get rid of it. Instead of viewing yourself as already owning it, change your viewpoint to that of a non-owner.

Another strategy to help deal with loss aversion is gratitude. Be content with what you have, when you have it. Hold things loosely, being grateful for time already spent instead of being anxious about a future loss. Develop an abundance mindset.

As Socrates said, “He is richest who is content with the least, for content is the wealth of nature.”

Also, remember to think long-term. The fear of an impending loss now can prevent you from making a wise decision for your future. Move past a short-term-only framework.

Did Jesus teach about loss aversion?

Jesus taught his followers to focus more on his spiritual kingdom than on a physical kingdom. Material treasures hoarded here can be be destroyed and stolen, he said. Everyone will experience loss of these things. But spiritual treasures in his kingdom are safe (Matthew 6:19-21).

Jesus also taught that life is more than possessions (Matthew 6:25). More than reputation. More than attachments. Being anxious about what you wear or how you look or how much you have will add no value to your life. Instead, he said that seeking the kingdom of God and his righteousness will bring all things into alignment (Matthew 6:33).

Bottom line, Jesus taught it’s better to live with open hands instead of clinched fists. 

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Loss aversion affects us all differently. Maybe you don’t cling to money, but you cling to your schedule, for example. Do you struggle letting go of things you no longer need to keep? Share in the comments.

You are on Day 8 of the series: “How to Uncover Hidden Biases.”

Previous: Scripture Wisdom {Bias Day 7}
“If You Don’t Know What You’re Doing”

Next: Halo Effect {Bias Day 9}
“Are Taller People More Successful?”

As you ready your heart to begin a new week, go to the Source for help.

On Monday, February 8, we’ll begin looking at more biases that hinder our ability to live into our God-given purposes.

We know who can give us vision to see our blindspots. He loves it when we ask him for help.

And he loves to help us.

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You are on Day #7 of the series: “How to Uncover Hidden Biases.”

Previous: Bias Quotes {Bias Day 6}
“5 Quotes to Awaken Our Hidden Biases”

Next: Loss Aversion {Bias Day 8}
“But It’s Mine! Why We Can’t Let Go”

“An unexamined life is not worth living.”
—Socrates

~ * ~ * ~

“The fool doth think he is wise, but the wise man knows himself to be a fool.”
—William Shakespeare

~ * ~ * ~

~ * ~ * ~

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
—Josh Billings

~ * ~ * ~

“Search me, O God, and know my heart! Try me and know my thoughts!”
Psalm 139:23
—King David

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You are on Day #6 of the series: “How to Uncover Hidden Biases.”

Previous: Our Biases and Politics {Bias Day 5}
“Blinded by Politics? Uncover Your Biases”

Next: Wisdom Scripture {Bias Day 7}
“If You Don’t Know What You’re Doing”

Everybody Has an Opinion on Politics

One of the greatest dividers in our nation lately has been politics.

But not just politics itself. Our opinions on politics, too.

I’ve personally felt the divide among family, among friends, among neighbors.

And I don’t like it. I’m sure you don’t either.

How can we bridge the divide? No magic solutions here.

But there is something we each can do: Attempt to uncover our own biases regarding politics. We all have them. No one is immune.

Overcoming Our Biases in Politics

How can we apply the four biases from this week specifically to politics?

(1) How Can You Avoid Your Confirmation Bias? {Bias 1}

CONFIRMATION BIAS is listening only to what we already agree with. Listening only to our political party or leaning. It keeps us trapped in our own echo chambers.

My friend is a good example of how to break out of confirmation bias in politics. She and her dad are on opposite sides of many political issues. She has her sources; he has his.

But occasionally, she watches his news channel. She reads articles he suggests (and suggests some for him). She goes out of her way to listen to views that might oppose her own.

It doesn’t mean she changes her mind. That’s not necessarily the goal.  

But it educates her on how her father is thinking. And it gives them a better chance at communicating with each other. It’s still difficult. But it’s better than it would be.

(2) But I Don’t Want to Leave My Comfort Zone {Bias 2}

COMFORT BIAS causes us to avoid uncomfortable political conversations before they even happen.

No one is suggesting we pick political fights on Facebook. Or leave snarky comments on Twitter. Those are never helpful. 

But in person, when the right opportunity arises, it’s okay to push ourselves a little, to engage in safe and healthy conversations about our political stands. To ask questions. To listen. To grow. To step outside our comfort zone for a few minutes. 

(3) Why We Think We Already Know the Answers {Bias 3}

COMPETENCY BIAS (also known as the Dunning-Kruger Effect) is a tricky one. We each unconsciously overestimate what we know, without knowing we’re doing it.

When it comes to politics, we all know people (and likely ourselves too) who think they are “experts” on several issues. Maybe we read a news article or saw something online, and voila!—we now know the simple solution to untangle complex issues.

But as our mamas told us, “A little knowledge can be a dangerous thing.”

With politics, as with all other topics, we need to remember there is always more iceberg under the surface than what we see on top. Let’s practice a humble “I don’t know” more often so we can keep learning more.

(4) How to Stop Being So Negative {Bias 4}

NEGATIVITY BIAS also affects us all. It’s easier to see the bad things in politics rather than the good things, to point out what’s wrong with everyone else. 

Recruit a friend or partner to gently remind you when you’re getting too negative.

While we don’t have to find good in every issue (some issues have nothing good in them), we also don’t have to assume the worst about every politician (especially those on the opposite side). Name-calling and gaslighting and generalizing are not helpful; they are negative and harmful.

We need to keep our eyes open to problems that need solving. And work to solve them. But we also need to seek out positive things happening in politics, too (and yes, there are many!).

Seeing Past Our Biases

No one is immune from having biases. But likewise, none of us are beyond hope from seeing past our biases if we’ll keep an open mind.

No one has to live in the dark basement of politics, locked down in their own opinions. We all have a choice to walk into the light, and to live and love in brighter spaces.

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How do you overcome your political bias? I’m trying, but it’s hard. Share your thoughts in the comments.

You are on Day #5 of the series: “How to Uncover Hidden Biases.”

Previous: Negativity Bias {Bias Day 4}
“How to Stop Being So Negative”

Next: Bias Quotes {Bias Day 6}
“5 Quotes to Awaken Our Hidden Biases”

What is the negativity bias?

The negativity bias is our tendency to focus more on our negative experiences than on our positive or neutral experiences.

Here’s an example of the negativity bias.

You’re at your favorite restaurant. The appetizer is wonderful, the main dish is fantastic, but the dessert tastes strange. What do tell your friends the most about the meal? The lousy dessert.

Or say your spouse cleans the kitchen after dinner, sweeps the floor, and loads the dishwasher. But they put the silverware in the dishwasher upside down. That’s the thing that will stick in your mind.

Or you’ve been close with a co-worker for years. Until they say one negative thing about you. You’re willing to forfeit the friendship over it. 

Why are we so negative anyway?

It starts as a brain thing. We’re hardwired to stay safe by focusing on things that go wrong rather than on things that go right. Our minds give more weight naturally to negative experiences than positive experiences.

One study suggests that one angry face will stand out in a crowd of happy faces, but one happy face won’t stand out in a crowd of angry faces. Our brains detect threat quicker than comfort. 

(Interestingly though, men and women often respond differently. For example, when we hear a negative comment about us, men are more apt to externalize it with anger, whereas women tend to internalize it as sadness or depression. Maybe that’s a cultural thing?)

Why is the negativity bias a bad thing?

Here’s an obvious reason: Nobody enjoys being around a totally negative person. We avoid them if possible.

But if it’s me that is the negative person, I’m sacrificing my quality of life if I focus on the negative all the time. Negativity causes us to spiral down into pessimism and fail to notice the good things happening all around us. We can lose perspective on what’s truly a problem and what’s just an inconvenience.

How do we stop being negative?

Here are some ways to counter the negativity bias in ourselves.

1. Catch your self-talk.
   How do you talk about your experiences? Put more effort into valuing the positive aspects of your life to break the pattern of negativity.
2. Challenge your negative filter. 
   Are things really that bad? Could your judgment be clouded by other things? 
3. Give yourself hope.
   Talk to yourself like you would talk to your best friend, with compassion and care and hope.
4. Keep a gratitude list.
   It sounds cliché, but find things to be grateful for. Keep a gratitude journal or start a habit of thanking God for your blessings when you wake up and before you go to sleep.
5. Use the 5:1 rule.
   If you’re being negative toward others, remember John Gottman’s 5:1 rule:

For every negative encounter, balance it with five positive ones.

This doesn’t mean you ignore problems. Do address negative things. Don’t gloss over them. But don’t notice ONLY the negative. Give your life balance.

How did Jesus handle negative people?

Jesus had negative voices constantly yelling at him when he was here. His own people, the Pharisees and scribes, were the loudest critics.

He never seemed surprised by the negativity though. He knew his enemies would push back against his new commandment of love. Yet he still listened to them, prayed for them, ate with them, talked with them.

He didn’t let others’ negativity affect his positive mission. He kept moving forward with his plan to love all people in words and deeds, and to tell us to do the same.

As we strive to love all people—even the negative ones—may we remember to not take their negativity personal. And when WE are the negative ones? Let’s remember to pray for ourselves too, to follow in Jesus’s footsteps, and to be hopeful, joyful, bringers of light, even when it’s dark.

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Have you caught yourself being negative lately? How do you combat it? Please share in the comments.

You are on Day #4 of the series: “How to Uncover Hidden Biases.”

• See the Bias Table of Contents here

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Previous: Competency Bias {Bias Day 3}
“Why We Fail to Recognize Our Our Incompetence”

Next: Our Biases and Politics {Bias Day 5}
“Blinded by Politics? Uncover Your Biases”

What is the Competency Bias (also known as the Dunning-Kruger Effect)?

This cognitive bias is when we unconsciously overestimate our abilities or knowledge (we’re all above average drivers, right?).

Basically, we don’t know enough to realize how little we know.

At the same time, people who ARE an expert in an area might still think others know more than they do, when they don’t. (These people might have the Impostor Syndrome, the bias of doubting your legitimate accomplishments, thus feeling like an impostor.)

Bottom line: we’re not very competent at determining our own competence.

Here’s an example of the Dunning-Kruger Effect (Competency Bias).

They say the first rule of the Dunning-Kruger club is you don’t know you’re in the Dunning-Kruger club.

We’re all familiar with someone who brags at the dinner table about their knowledge on a topic, but they are unaware of how little they know.

For example, if you’re white, and you claim to understand exactly how it feels to be Black in America, you’re probably a member of the Dunning-Kruger club.

Another example: When surveyed about their knowledge of social policies, people in both political parties were confident in their expertise of a complex issue even though they held only a simple understanding.

And here’s a humorous example.

Why do we think we know more than we do?

We naturally need confidence. It allows us us to take action. It’s the overconfidence that hurts us.

But it’s hard to know we’re not performing well if we don’t know the correct measure of “well.” Ironically, those mostly likely to overestimate their abilities are often the ones with the least skills.

Also, once we know something in one area, we often assume incorrectly that the knowledge transfers equally to other areas. Or if we’ve learned a little, we assume we know a lot.

As our parents told us, “A little knowledge can be a dangerous thing.”

Culture also plays a factor (certain nationalities are more prone to this competency bias than others). We’re uncomfortable saying, “I don’t know” so our brain tells us actually we DO know. It creates a shortcut that doesn’t exist so we can make sense of the matter.

Why does incompetence carry a “double curse”?

1. Incompetence causes us to reach bad conclusions, make mistakes, take unnecessary risks, and undervalue the genuine experts.

2. But secondly, we’re also cursed by not realizing it’s our own incompetence that’s causing our problems. We don’t learn from our mistakes.

How can I prevent having this Competency Bias?

• Work on your meta-cognition skills.
  Think about your own thinking. Realize your ignorance is invisible to you until you seek to become aware of it.
• Keep learning more.
  The more you learn, the more you’ll realize there is to learn.
• Get honest feedback.
  Listen to other people about your abilities. Don’t rely on your own opinions about yourself.
• Be intellectually humble.
  Let down your defenses. Can you take constructive criticism? Do you listen to others? What are you basing your confidence on?

(And maybe read this article about contradictions about our understanding of the Dunning Kruger effect.)

How did Jesus handle the competency bias in others?

Here’s how Brian McLaren describes it in his book, Why Don’t They Get It?

“Jesus praised child-likeness and helped people learn that they have a lot to learn . . . building their confidence that they can enjoy life beyond their current biases.

He praised people for wise answers and ‘caught them doing good,’ and boldly confronted ‘blind guides’ and ‘hypocrites’ who were unaware of their ignorance.”

In one of Jesus’s last conversations with his disciples before the crucifixion, he told them they would do greater works than he had done (don’t underestimate your power) (John 14:12).

Yet he also said they didn’t know everything (don’t overestimate your knowledge); wait on the Holy Spirit to teach them (John 14:26).

Jesus’s advice is good for us today, too: 

• Don’t underestimate God’s ability to work through you.
• And don’t overestimate how much you think you know.

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As with the other biases, we’re all prone to the competency bias. How do you become aware you don’t know as much as you think you do? Share in the comments.

You are on Day 3 of the series, of “How to Uncover Hidden Biases.”

• See the Bias Table of Contents here

• Subscribe to the blog to get future posts in your email.

Previous: Comfort Bias {Bias Day 2}
“I Don’t Want to Leave My Comfort Zone”

Next: Negativity Bias {Bias Day 4}
“How to Stop Being So Negative”