The main reason insurance is such a powerful industry is because people are more afraid to lose than they are eager to gain.
The Loss Aversion Principle says that you get more displeasure from losing $50 than you get pleasure from finding $50. Everyone wants to have a fifty-fifty chance of winning $100 if they have to put $50 on the line. People go out of their way to avoid loss.
Because of this principle, people are also afraid to take action first. They would rather stay in their comfort zone than risk even a tiny amount. But the best things in life happen when you take action first and risk a little.
I wouldn’t start Word Raft, one of the best things that happened to me last year, had I not started messaging people I don’t know on Twitter. What’s the risk of messaging someone out of the blue on Twitter? I think the only thing that’s at risk is one’s ego. What is a fear of rejection other than fear of getting your ego hurt? But if you’re willing to put your ego on the line a little, wonderful things can happen.
Meeting my fiancee, the best thing that ever happened to me, also wouldn’t happen had I not risked a little. Had I not put my ego on the line and risked being rejected.
Risking even a tiny amount is not the easiest thing in the world. It’s much harder than being passive and expecting good things to fall into one’s lap. Risking even a tiny amount means taking action instead of being passive. Risking means leaving the comfort zone, fighting the inertia, and fighting the pull of passivity, which ultimately leads to depression.
Taking action, on the other hand, means that you can at least potentially get what you want. Being passive about it means there’s no way you can.