For clear and rationaldecision-making, the amount you already spent must be viewed as irrelevant to what comes next.
Studies have shown that the larger the loss, the higher the sunk-cost bias is.
In these moments, its important to prioritize rational thought.
David Sacks/The Image Bank/Getty
If past results haven’t paid off, then it’s like it won’t in the future either.
If until this point the relationships, hobby, friendship, job, etc.
has not served you in any positive regard, it likely won’t in the future.
How to Reduce the Sunk-Cost Fallacy
The sunk-cost fallacy can lead to poor decisions and significant losses.
Unfortunately, like other types of cognitive biases, it isn’t always easy to avoid.
If the answer is no, it’s a sign you should adjust your plans.
Set clear goals and focus on the future instead of dwelling on past choices.
Then, look at the facts.
Have you repeatedly been met with dead ends?
Is there still potential for a positive outcome if you continue investing your resources and energy?
What are the benefits of walking away and opening a new door?
These are the factors that should influence your decision rather than any previously sunk costs.
National Institutes of Health.Sunk cost fallacy How it affects career decision-making.
Reducing sunk-cost bias in a life-span sample.Psychol Aging.
2016;31(7):724-736. doi:10.1037/pag0000130
