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

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

This week, we’re diving deeper into spending—what truly counts as a need versus a want, and how to make sure your spending reflects your values and supports your financial goals.

Even high-income earners can struggle to save when lifestyle inflation creeps in. In this episode, we’ll explore how lifestyle inflation happens, how to recognize it, and how to shift toward mindful spending that brings lasting fulfillment.

You’ll learn:

· How to tell the difference between needs and wants

· Why lifestyle inflation sneaks up on so many physicians

· How hedonic adaptation affects your happiness and spending

· How to spend intentionally on what truly matters to you

Your money should support the life you want—today and in the future. Tune in to learn how to make spending choices that align with your values and bring more meaning, freedom, and joy to your financial journey.

References:

https://www.census.gov/library/publications/2024/demo/p60-282.html

https://www.nerdwallet.com/article/finance/data-2023-budgeting-report

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

Have you ever wondered how much you should be spending on housing, groceries, cars, or fun? This episode breaks down how to create a realistic and values-based spending plan that fits your lifestyle and financial goals.

Whether you’re creating your first spending plan or re-evaluating where your money goes each month, this episode will help you understand how to balance your spending between needs, wants, and savings—and how to adjust that framework to fit your own circumstances.

You’ll learn practical tips for evaluating your current spending, how taxes and deductions affect your take-home pay, and what percentage of your income you might want to allocate to housing, transportation, and other categories.

🧭 In This Episode, You’ll Learn:

• How to analyze your past spending to build a realistic budget
• The difference between needs, wants, and savings
• How to apply (and adapt) the 50/30/20 rule to your own finances
• Why your take-home income—not your gross income—is the key to building a sustainable plan
• How to think about big expenses like housing, cars, and insurance
• Why every spending plan should reflect your personal values and long-term goals

💡 Key Takeaways:

• Your ideal spending plan depends on your goals, lifestyle, and location.
• Start by tracking your current spending before deciding what to change.
• Keeping your needs at 50% or less of your take-home pay gives you flexibility.
• Saving and investing at least 20% of your income is key to long-term financial freedom.
• Spending on wants—guilt-free—is part of a healthy financial mindset.

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

As physicians, we’re no strangers to long-term goals. Many of us spent years—if not decades—pursuing the dream of becoming a doctor. That kind of deep, meaningful striving can bring great fulfillment—but what happens when we achieve that goal and still feel like something’s missing?

In this episode, we explore how goals influence our happiness, why the type of goals we pursue matters, and how to realign our ambitions to create more joy, purpose, and emotional well-being. Whether you're feeling stuck, burned out, or just wondering what comes next, this conversation will help you reconnect with what truly matters to you—and inspire you to pursue it.

You’ll learn:

• Why meaningful goals are essential for lasting happiness
• The difference between intrinsic and extrinsic goals
• How approach vs. avoidance goals affect motivation
• What to do when your goals are in conflict
• How to evolve your goals as your life and priorities change
• Ways to reframe financial goals to make them more fulfilling
• A practical exercise to evaluate and refine your current goals

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

Are you age 50 or older and contributing extra to your 401(k), 403(b), or 457(b)? Big changes are coming to catch-up contributions that could affect your retirement planning—especially if you’re a high-income earner.

In this episode of The Grow Your Wealthy Mindset, I break down the IRS’s final regulations on catch-up contributions under the SECURE 2.0 Act and what they mean for you starting in 2026.

We’ll cover:

• Who is considered a “high-income earner” and how that definition is determined
• Why all catch-up contributions will soon need to be Roth contributions (and what that means for your taxes)
• Projected contribution limits for 2026, including the special higher limits for ages 60–63
• How multiple employers, W-2 wages, and self-employment income affect eligibility
• Practical strategies for adjusting your payroll contributions ahead of time

These rules are complex—and a little confusing—so I’ll walk you through the details step by step to help you plan with confidence.

🔑 Key Takeaway: Starting in 2026 or 2027, if you earn more than $145,000, you’ll no longer be able to make pre-tax catch-up contributions. Understanding the new limits and planning now will help you avoid surprises later.

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

As physicians, most of us start out following a traditional path: find a job posting, talk to recruiters, and take whatever positions are available in the places we want to live. But what if we thought differently about our careers? What if we created work arrangements that actually fit our lives, values, and goals?

In this episode of The Grow Your Wealthy Mindset, I share my own story of exploring non-traditional work arrangements — from going part-time, to traveling for work, to negotiating directly with practices rather than relying solely on locum agencies. I’ll take you behind the scenes of what it’s like to create a flexible career, the trade-offs involved, and the lessons I’ve learned along the way.

You’ll hear:

· Why networking and reaching out can open doors to opportunities that don’t show up on job boards.

· The differences between working through a locums agency and contracting directly with a practice.

· What it’s really like to travel for work, and the perks and challenges that come with it.

· Why every physician should have an emergency fund, even in high-demand specialties.

· How multiple streams of income can give you security when your job situation changes unexpectedly.

Whether or not traveling for work appeals to you, this episode will help you expand your perspective on what’s possible in medicine and encourage you to think creatively about designing your own work life.

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

In this episode of The Grow Your Wealthy Mindset, we dive into donor-advised funds (DAFs)—a powerful but often overlooked tool for charitable giving.

You’ll learn:

• What a donor-advised fund is and how it works
• Why donating appreciated assets (like stock) may be smarter than giving cash
• The benefits and downsides of using a DAF
• How Fidelity, Schwab, and Vanguard’s donor-advised funds compare
• When a DAF might make sense in your own financial or estate planning

Whether you’re already a generous giver or want to maximize the impact of your future donations, this episode will help you understand whether a donor-advised fund belongs in your financial toolkit.

Resources Mentioned:

Fidelity Charitable: https://www.fidelitycharitable.org

DAFgiving360™ (Schwab): https://www.schwabcharitable.org

Vanguard Charitable: https://www.vanguardcharitable.org

Daffy https://daffy.org

Charityvest https://www.charityvest.org/

https://inequality.org/article/top-public-charities-dafs/

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...

When it comes to interest rates, not all percentages are created equal. In this episode, we break down the difference between APR (Annual Percentage Rate) and APY (Annual Percentage Yield)—two terms that may sound similar but can drastically affect how much you pay (or earn) over time.

We’ll explore:

• Why lenders advertise APR while banks flaunt APY
• How compounding frequency changes your bottom line
• Real examples from high-yield savings accounts and credit cards
• How daily vs monthly compounding adds up over time
• What’s actually included in APR (hint: it’s more than just the interest)
• Why understanding these terms is key to smarter borrowing and investing

Whether you're saving, borrowing, or just trying to get the most from your money, knowing the true cost or benefit of interest can help you make better financial decisions.

Tune in to learn how a few percentage points—and a little compounding—can make a big difference!

Please subscribe and leave a review on your favorite Podcasting platform.

Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakes

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

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.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mind...