In this conversation we explore the concept of sunk cost fallacy, which is the tendency to continue investing resources in something even when it's no longer beneficial. Examples include staying in an unfulfilling job or relationship and continuing to pay for unused memberships or subscriptions.
Takeaways
- Sunk cost fallacy is the tendency to continue investing in something even when it's no longer beneficial.
- Awareness of the sunk cost fallacy can lead to positive outcomes, such as saving money and building resilience.
- The fear of failure and the desire to maintain self-worth often drive the sunk cost fallacy.
- By reframing the story and understanding the emotional and fear-based aspects, individuals can break free from the sunk cost trap and embrace change.
