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Sunk Cost

Mario Schulzke
Mario Schulzke
1 min read

You've been in a bad relationship for years. You should break it up but don't because you have already invested so much time.

You've been a member of a political party for a long time. Deep down, you're starting to disagree with some of the issues, but you don't allow yourself to acknowledge that shift because so much of your identity is tied to this party.

You hate your job. You hate your career. But you've been in it for so long. Making a change seems too complicated, given how much time you e invested into this path.

Or how about the employee you manage who has been with the company for years and is chronically underperforming, with a negative attitude to go along with it?

These are all examples of decisions you should make that you're not making only because of how much you have invested into them in the past.

It's called the sunk cost fallacy. The ability to recognize and overcome the sunk cost fallacy is a superpower.

Spot them by identifying situations when you're over-justifying decisions to yourself.

Overcome them by asking yourself if you had to make that decision today with no history, would you make the same decision?

Would you choose to start dating that person now?
Would you start that same career today?
If you marketed that job, would this person be your top candidate?

Every time you overcome the sunk cost fallacy and decide against it,  you reduce debt that keeps you from living the life or having the career you're meant to have.

Sunk Cost. If you see it, overcome it.

Mario Schulzke Twitter

My name is Mario and I grow ideas, companies and hot peppers.