Episode: Sunk Costs, Opportunity Costs, and Thinking in Terms of Expected Value

Have you ever kept going with something—even when you knew it wasn’t worth it—just because you’d already invested so much time, money, or effort? That’s the sunk cost fallacy at work.

In this episode of The Grow Your Wealthy Mindset, Dr. Elizabeth Chiang explores how sunk costs, opportunity costs, and expected value shape our financial and life decisions. Drawing insights from Annie Duke’s Quit: The Power of Knowing When to Walk Away, you’ll learn how to make more rational choices—whether it’s deciding to attend a rainy concert, stick with a struggling investment, or stay in an unfulfilling job.

You’ll learn:

• What the sunk cost fallacy is—and how it sneaks into your investing and daily choices
• Why we often “throw good money after bad” and how to stop doing it
• How opportunity costs help you see what you could be gaining elsewhere
• How to use expected value thinking to make smarter, more objective decisions
• Real-life examples from investing, research projects, and career choices

Understanding these concepts can help you step back, evaluate your options more clearly, and walk away from what’s no longer serving you—financially or personally.

Mentioned in this episode:

• Quit: The Power of Knowing When to Walk Away by Annie Duke
• Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie Duke

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Dr. Elisa Chiang is a physician and money coach who helps other doctors reach their financial goals by mastering their money mindset through personalized 1:1 coaching .

You can learn more about Elisa at her website or follow her on social media.

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