The more time, money, effort or love we have invested in something, the less we are inclined to let it go, even when the evidence is that it is a lost cause.
The sunk cost fallacy prevents us from realizing the best choice is to do whatever promises the better experience in the future, not that which negates the feeling of loss from the past.
Studies show lower animals and small children do not commit this fallacy. They do not care how much they’ve invested or how much goes to waste. They can only see immediate losses and gains. As an adult human being, we have the gift of reflection and regret, which changes how we react to our past.
As a simple example, have you ever overeaten at a restaurant because you have paid for the meal and want to get your money’s worth?
This New Year, notice what are you holding onto because of sunk costs in terms of time, effort, money or emotion.
From here on, is it going to keep costing, or start paying?
My best wishes, Paul
By Paul Matthews – Speaker/Author/Expert on Informal Learning and Workforce Capability
Author of new book “Learning Transfer at Work: How to Ensure Training >> Performance“
and bestsellers “Capability at Work: How to Solve the Performance Puzzle“
and “Informal Learning at Work: How to Boost Performance in Tough Times“
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