How to Stop Letting Fear Run the Show
Here’s a truth we don’t talk about enough: Money is deeply tied to our emotions.
And whether we’re aware of it or not, our emotions often sit in the driver’s seat when we’re making financial decisions–shaping everything from our day-to-day money management to how we view investing and manage our portfolios.
Now, emotions aren’t inherently bad. In fact, they can offer powerful insights into our values and goals. But when left unchecked, they can quietly lead us into some of the most common—and very human—money mistakes.
One of the biggest culprits?
Loss aversion bias.
What Is Loss Aversion Bias?
Loss aversion is a well-documented behavioral finance principle that shows how the pain of losing feels significantly more intense than the pleasure of gaining. In fact, studies suggest that the emotional impact of a loss is about twice as powerful as that of a gain.
Sound familiar?
Maybe you’ve held onto a stock far too long, hoping it would rebound because selling would feel like admitting defeat. Or maybe you’ve avoided investing altogether out of fear of losing what you already have.
You’re not alone. But here’s the empowering part:
We can’t change what we don’t acknowledge.
The first step to overcoming emotional investing is AWARENESS. Once we recognize the bias, we can begin to move forward with intention.
Two Ways to Break Free from Loss Aversion
Let’s talk about how to start shifting your mindset around investing:
👉🏽 1. Unmarry Your Stocks
This one is powerful. Your investments are not a reflection of your worth, intelligence, or identity.
They are tools—strategic vehicles to help you create the life you envision. When we hold onto underperforming assets because we feel emotionally tied to them, we lose clarity. Letting go of these attachments gives you space to make smarter, values-based decisions.
💬 “It’s not personal. It’s strategic.”
👉🏽 2. Set a Clear Goal or Exit Strategy
Whether you’re new to investing or have been in the game for years, one of the wisest things you can do is set a clear exit plan.
Know your thresholds:
- How much are you willing to lose before it no longer makes sense to stay in?
- What return would make you feel satisfied enough to step away?
When you create these goalposts ahead of time, you take the pressure off in emotional moments. It’s not about timing the market perfectly. It’s about showing up with intention and self-trust.
After all, a healthy investing mindset isn’t about avoiding risk—it’s about recognizing fear when it arises and choosing aligned action anyway.
Self-Compassion in the Face of Bias
The goal isn’t to avoid bias altogether. We’re human. We all have them.
The real work is in learning to:
- Recognize them
- Name them
- Navigate them with grace, strategy, and self-compassion
So the next time you’re feeling uncertain or emotionally triggered around money, take a step back. Reflect. Breathe. And remember that financial wellness is as much about mindset as it is about math.
Ready to Align Your Emotions With Your Money Goals?
If this message resonated with you, and you’re ready to explore how your emotions, habits, and beliefs might be impacting your financial outcomes, I’m here.
Whether you’re looking to reduce fear around investing, build a system that reflects your values, or create boundaries that support your peace of mind, you don’t have to navigate it alone.
📩 Let’s chat—book a discovery call here.
Here’s to embracing courage, self-awareness, and the life you’re working so hard to create. 👑
XOXO,
Anna
Ready to step into your financial power?
Explore our website to discover how we can collaborate, or get in touch directly HERE. For additional details, please see the information provided below.
Anna Orenstein-Cardona is a Financial Coach and NFEC-Certified Financial Educator (CFEI) who empowers organizations, small-business owners, and individuals to grow their money knowledge in fun and creative ways. She worked on Wall Street and in the City of London for over two-decades, before launching her financial education and coaching business, Wear Your Money Crown®.
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