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Be aware of the sunk cost fallacy from "summary" of The Art of Thinking Clearly by Rolf Dobelli
The sunk cost fallacy is a dangerous trap that many of us fall into without even realizing it. We tend to continue investing time, money, or effort into something simply because we have already invested a lot in it. We believe that if we just keep going, all our past investments will not go to waste. But this is a fallacy. It is important to remember that what is done is done. The money you have already spent, the time you have already invested – these are sunk costs. They cannot be recovered, no matter how much more you invest. Therefore, the rational decision to make is based on the future costs and benefits, not on what has already been spent. Continuing to invest in something just because you have already invested a lot in it is like throwing good money after bad. You are essentially pouring more resources into a project that may not be worth it, just to justify your past investments. To avoid falling into the sunk cost fallacy, you must learn to cut your losses when necessary. Evaluate the situation objectively and consider whether continuing to invest more resources is truly worth it. Do not let your past investments cloud your judgment – focus on what will bring you the most benefit in the future. Remember, it is never too late to walk away from a sunk cost. It is better to accept your losses and move on than to continue investing in something that is not worth it. By being aware of the sunk cost fallacy and making rational decisions based on future costs and benefits, you can avoid unnecessary losses and make wiser choices in the long run.
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