Why do we fear losses more than we value gains?

Gain and Loss

The answer lies in our evolutionary past. Our ancestors may have enjoyed occasions when food was in abundance, but periods without enough to eat were potentially fatal. These primal forces still have a powerful influence on our decisions today.

Loss Aversion

Economists have identified loss aversion as a major factor in financial decision-making, in that most people would rather avoid losing money than acquire more. The psychological impact of losing is thought to be twice as powerful as the pleasure of gaining.

The True Value of Protection

The True Value of Protection

Many people think of wealth as the value of their savings, investments and assets. However, the ability to keep earning an income is equally important.

Ensuring that you have adequate financial protection for you, your family and any dependants is an important element of financial planning. As a healthy working person with a good income, you may feel reasonably confident that you are able to provide for your family. However, your finances could be more precarious than you think.

Mindful Wealth, Kids and Money

Mindful money

Mindful wealth! What a fascinating concept and phrase.

We believe establishing the right “mindset” and “habits” are crucial to kids, families and their futures.

Did you know adult money habits are formed by age 7 – University of Cambridge

Important concepts that underpin many money skills, such as: waiting whilst saving to afford something they want; understanding the concept of ‘future’; dealing with delayed gratification; avoiding impulsive, irreversible decisions. Basic approaches and skills can be modelled, discussed and demonstrated by parents with young children, such as the basic benefits and tools of sharing, saving, and purchasing that will instil efficient habits and practices.

A key point here is that situations need to be constructed so that the child experiences the process or idea rather than just being told about it.

The Happiness Dividend

Happiness Dividend

What exactly does that mean ‘The happiness dividend’? Curios then you may enjoy reading ‘Mindful Money’.

The book offers a thoughtful reassessment of how money is just a tool, not the destination.

Is it possible to be a conscientious member of society and grow wealth? The author, a Buddhist and a financial planner, says yes and explains how money drives many of our decisions. We all worry about earning it, spending it, and saving it — regardless of our income level or spiritual perspective. Yet few of us understand money’s true nature. The book explores your deepest beliefs, covers topics to save, invest, pay off debt, and fund your retirement and dreams by building a lifetime income stream. With a foreword by Pulitzer Prize–winner Alice Walker, Mindful Money does all this while emphasising that money is a tool you can use to support your lifestyle, reach your goals, and earn the “happiness dividend” everyone deserves.