A major reason that people continue to stay in bad relationships, toxic friendships and bad investment positions is due to the sunk cost falicy.

We sometimes feel that because we have invested time and effort into a decision, we need to see it through. We essentially sink resources into our project, and use this to justify staying in a bad position, even though we know if will hurt us.

Many times, we need to cut our losses, consider what we have invested as a "sunk cost" or a cost of doing business and then cut the line. Think of it like fishing- would you let an impressive fish on the line damage your equipment, boat and even your own body just to catch it? Will if be worth the realized losses, even if you have spent all day wresting with it?

I have had this mindset with investments I have made in the past. Often times the driver of the sunk cost falicy is our ego. From our youth, we learn that winning is most important, and creeping project scope is worth the risk.

Keep this in mind before you continue grinding in a losing endeavor.

Pixabay

Originally published in my Blurt account at:
https://blurt.world/life/@dominion01/the-sunk-cost-falicy

Also published in my Uptrend, Publish0x and Whaleshares accounts I own.