We are shackled to half-decent situations.

And the worst part?

We don’t even realise it.

This causes us more harm than good after all, it’s “not that bad”.

Context:

The ‘beta’ part comes from a stocks/shares investing term used to describe the volatility of

a market.

The standard is 1.0 (i.e. the S&P 500).

More volatile than the standard and we have 1.4, for example.

Less volatile, and a 0-something.

For example when fireworks that sounded like gunfire went off outside my window at

10:22pm last night, I was Beta 1.8 volatile.

So what does the ‘Region Beta’ paradox mean?

Essentially, it means we stay in a given situation or way of doing things because it’s not

that bad, potentially even comfortable.

If things were worse, we would be better off, as it would force us to change our situation,

because it’s not bearable in its current state.

Simple example: The beach is 1 mile away. I walk it, as it’s not too bad. It takes me 16

minutes.

If the beach were 2 miles away (i.e. further/worse), I would be forced to ride my bike or

drive, as it’s too long to walk (I am lazy). The bike gets me there in 7 minutes; the car, 4.

Therefore, if I were worse off/further away, I would change my situation for a net positive

outcome.

As it’s “not that bad”, I don’t.

Other examples:

Staying in a relationship... maybe you’re not 100% into the other person, but it’s
alright, they are nice, you don’t feel lonely. If they were not, you would leave and find
someone better.
Your job... maybe it doesn’t give you fulfilment, but it pays all your bills, allows you to save, and is pretty chilled. Therefore, you stay.
Your health routines... you’re not in bad shape, you do a bit of exercise, everything works okay. Then you have a health scare, which makes you exercise or look after yourself more.

In all these situations, the worse the status quo, the more likely you are to change for

something better a net positive.

It’s hard, it’s scary, if you don’t know what you’re doing you might make mistakes, it’s too

much work, etc.

Your stocks and shares are doing alright, that should be enough to live off, right?

The situation is ‘OK’, so you keep the status quo.

And that is the point of the paradox, we do not realise we are within it, so we do not

change.

Therefore, it is up to you to recognise this and change it for a net positive.

Do not wait until things are worse.

Be proactive, get on the front foot, and actively seek to improve your situation.

Yesterday’s podcast is below… you could say our guest, Sion, was in a Region Beta

paradox. Playing professional rugby in the UK, life was okay good even but he forced a

change.

Now he lives the expat dream in HK and owns a growing property portfolio.

Lovely.

Callum

Region Beta Paradox

Illegitimi non carborundum