A One-Step Process For Recovering From Financial Screw Ups

The pain of loss has an impact on us that is at least twice as powerful as the joy of gain. This potent observation from Daniel Kahneman has implications in nearly every area of our lives, but especially in our finances, where losses and gains are so clearly illuminated numerically.

We’ve discussed how financial planning is inherently an exercise in mistake management, but the question is still begged, “How do we recover from our mistakes?” Here’s a one-step process for getting back on track: