The Sunk Cost Trap: Why Past Effort Shouldn’t Decide Your Future
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Why is it so difficult to walk away from something after investing time, money, or effort into it?
In this episode, we explore the sunk cost trap—the tendency to let past investment influence decisions that should be based on future value.
You’ll learn how sunk costs differ from opportunity costs, why persistence is not always rational, and how to use a simple forward-looking decision framework to decide whether a project, job, investment, or commitment still deserves more of your resources.
The key question is simple:
If you had not already invested in this, would you choose it today?
A practical episode about making better decisions by focusing on what comes next—not on what has already been spent.
From Durable Ideas Press.
Read the full article