Sunk Cost Fallacy: Time to Quit
Sunk Cost Fallacy: Stop Going Down the Road You Know Is Wrong
Do you ever find yourself doing what doesn’t feel right, but you are still doing it?
Imagine a scenario it is Friday night, you are going to a watch a movie, and you decide to splash on premium seats, VIP package – as the movie starts, you realize it is awful. What do you do? Honestly? We know for ourselves if we are not mindful, we will probably stay and watch it. In the back of mind, we will think we paid for this ticket, so we need to get our money worth.
Even though if you think rationally whether to stay or go, money is already spent – so we should leave and not suffer through it.
This what this video is about – a little flaw in our brain programming called Sunk Cost Fallacy, that could be affecting your personal finance and other areas of your life.
Overview
- The Sunk Cost Fallacy definition
- Breaking down the Sunk Cost Fallacy
- 3 examples of how Sunk Cost Fallacy affects your personal finance
- 3 steps to handle Sunk Cost Fallacy