This content has been automatically translated from Ukrainian.
You work on a project for months or years, but there’s still no result. And instead of stopping, you invest even more. And someone will say, “Wow! What determination!”
But is it really the ability to play the long game?
Sometimes we don’t notice the obvious: it no longer makes sense to continue. So why is it so hard to stop?
Here comes the concept of sunk cost fallacy — “the sunk cost fallacy.” What is it?
The sunk cost trap (English: sunk cost fallacy) is a cognitive bias where a person continues to invest time, money, or effort into a losing project, relationship, or endeavor simply because they have already invested so much in it. This is irrational behavior, where the fear of “losing” what has already been spent outweighs the logical assessment of future losses.
I encountered this bias when I was leaving a relationship that lasted 5 years. Too much had already been shared, and we had worked through common traumas and problems. However, we were no longer happy together. And it’s not because someone is bad. Not at all. We simply gave each other our best. But if the feelings have faded and happiness hasn’t visited for a long time, why is it so hard to leave? Besides attachment, of course, there’s room for this sunk cost fallacy.
I read the best example in an English article. Imagine you bought a ticket to a concert of your favorite band for 2–3k, you plan to go with friends and are looking forward to it. However, on the day of the concert, you feel unwell, there’s hail and rain outside, anxiety, but you still go to the concert. Although, objectively, the downsides clearly outweigh the upsides. This is the sunk cost trap — when we continue to invest in something simply because we have already spent money, time, effort, or emotions on it. Even if reality is clearly suggesting: this decision is no longer beneficial for us.
The sunk cost fallacy manifests in various aspects of our lives, if not all of them. This includes education, relationships, careers, investments, and so much more.
The main problem is that we often think irrationally, even though we are convinced of the opposite.
It would be more rational to consider future costs and problems. Like in the concert example: we’ve already spent money, but we could spend much more on our treatment.
But the hardest question is: “How to understand whether it’s worth going to the end right now, or is this the case where the sunk cost fallacy is present?”Unfortunately, I won’t provide a definitive answer, but I will give a few tips.
- Evaluate the situation as objectively as possible. It already sounds difficult, but this age-old + / - table works wonders. Most often, the answer is already in your head; you just need to free it.
- Give yourself an honest answer to the question: “Does this bring me happiness?” Of course, it’s impossible to have positive emotions all the time, but if the negative overwhelmingly outweighs the positive, it’s worth considering.
- Give yourself time. Decision-making always requires a clear mind. Rushing can play to your advantage, but that’s the exception.
- Don’t be afraid to let something go. I know there are many reasons why it’s scary to start from scratch. However, time is the most valuable thing we have. Consider whether you want to spend such a precious resource where you feel bad.
So, what am I getting at? This doesn’t mean that in the face of failures, you should throw up your hands and run away from the problem. Not at all. However, we must learn to prioritize. Sometimes moving forward isn’t stubbornly going to the end, but allowing yourself to stop in time.
You deserve to be happy. You deserve to see the results of your work.
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