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2d (edited) • Intellectual/Personal Growth💡
💰 Sunk Cost Fallacy
Ever kept putting time, money, or effort into something because you’ve “already invested too much”? That’s the sunk cost fallacy at work. It’s one of the most common thinking traps in everyday life, affecting decisions in careers, relationships, business, and even hobbies.
🧠 What It Is
The sunk cost fallacy happens when we continue with a decision or project simply because of what we have already spent, rather than evaluating future benefits objectively. Once time or money is spent, it’s gone. Yet our minds dislike “wasting” it, so we keep investing even when it no longer makes sense.
Sunk costs are costs that have already been incurred and can no longer be recovered. It is associated with commitment bias--where we continue to support our past decisions in spite of new evidence that no longer supports the old decision.
📋 Examples You Might Recognize
- Staying in a job you dislike because you’ve been there for years
- Holding on to an underperforming investment because you “already put so much into it”
- Continuing a streaming subscription you barely use because you paid for a whole year
- Remaining in a project or relationship that no longer aligns with your goals
- Staying in a religion or denomination even when there's evidence that seeking further/going in a different direction is more aligned ; or not believing something in spite of evidence
- Governmental programs that are no longer working/didn't work
🛠 How to Address It
Pause and evaluate future value
📝Ask yourself: “If I weren’t already involved, would I start this today?”
Reframe the investment
🔄Recognize the time or money already spent as a lesson or tuition for growth. The true waste is continuing something that isn’t working.
Set clear decision points
⏳Use check-ins or deadlines to reassess whether to continue. This makes it easier to step back without guilt.
Seek objective feedback
👥Friends, mentors, or colleagues can offer perspective free from your emotional investment.
🌱 Takeaway
Letting go of sunk costs frees up time, money, and energy for opportunities that actually serve you now. By spotting this bias early, you can make clearer, future-focused decisions.
For a nice article on this: The Sunk Cost Fallacy - The Decision Lab
💬 Question to consider: :When have you recognized the sunk cost fallacy in your own life, and how did you handle it?
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💰 Sunk Cost Fallacy
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