By Dynamis Ministries | September 23, 2021
As humans we have a big problem with losing. Even if we don’t consider ourselves competitive, losing still troubles us more than we may let on. In fact, our distaste in losing is so embedded in who we are that there’s a psychological term for this called loss aversion. Let’s break this down:
Loss: The act or fact of being unable to keep or maintain something or someone.
Aversion: A feeling of repugnance toward something with a desire to avoid or turn from it.
Putting these two together means that we have a tendency to act in a manner to avoid loss. Loss aversion is the observation that we experience losses more severely than equivalent gains. In other words, it’s more likely that the negative emotions we feel from losing $100 are more severe than the positive emotions we feel from finding $100.
Loss aversion is not a new phenomenon. In fact, there’s a well-known story in the Bible that shows this psychology at play. In Matthew 19 we read of the interaction between Jesus and a Rich Young Man. After a dialogue about what to do have eternal life, Jesus challenges the man to sell all his possessions and give his money to the poor. Sadly, the story ends with the man walking away from Jesus, unwilling to sell his possessions because he was afraid of losing his wealth. The man was experiencing loss aversion. He had a strong attachment to his possessions and was motivated by fear because in his mind he had a lot to lose by giving away his wealth.
Interestingly, Matthew puts this story up against another in his book when Jesus tells a strikingly opposite parable about money and possessions. In this story a man sold all his possessions to buy a field with a hidden treasure (13:44). For this man, joy, not fear, was motivating him to sell his possessions. He had a strong attachment to what he was gaining in return. These two stories show opposite responses to giving away wealth. In one instance a man keeps his possessions because he’s influenced by the fear of what he will lose. In the other a man sells his possessions because he’s encouraged by the joy of what he will gain.
If we’re honest with ourselves, it’s probably easier for most of us to relate to the Rich Young Man because we too tend to have a strong attachment to our money and possessions. Sometimes it’s hard for us to give because we’re afraid of what we’re losing. We may think of volunteering as losing leisure time or giving sacrificially with our money as losing a desired standard of living or future security. However, giving may be easier if we adopt the attitude of the man in the parable who gladly sold his possessions.
We can overcome our fear from a loss aversion mindset by focusing on what we can gain through our giving. When we give we’re actually gaining. Instead of loss aversion, we need GAIN ATTACHMENT. Gain attachment is when we see the good that can become and are moved to be a part of it. Let’s not allow the fear of losing to hinder our giving, let’s keep our eyes fixed on what we are gaining. The earthly and eternal rewards of our giving can’t be beat!
