Audio available in app
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...
Similar Posts
Embracing uncertainty can lead to innovative solutions
In times of uncertainty, it can be tempting to retreat to what feels safe and familiar. However, by embracing uncertainty, we o...
Effective delegation empowers team members to contribute to the vision
Delegation is a critical leadership skill that can make or break a vision. When a leader effectively delegates tasks to team me...
Stay present in the moment for mental clarity
One of the most effective ways to improve your mental strength is by staying present in the moment. When you are fully immersed...
Look for growth potential in companies
When it comes to investing in stocks, one of the key principles to keep in mind is the importance of seeking out companies with...
Money is emotional
Money is not just about numbers and spreadsheets; it's also about emotions. Many people have a complex relationship with money ...
We have a tendency to procrastinate
Procrastination is a common human behavior that most of us are guilty of at one point or another. We delay tasks that we know w...
Stay committed to your journey towards prosperity
To achieve lasting prosperity, it is essential to stay committed to your journey. This means consistently making choices that a...
Diversification is key to reducing investment risk
When it comes to investing, one of the most important concepts to keep in mind is diversification. In simple terms, diversifica...
Develop a system for decisionmaking
To be successful in life and work, one must develop a system for making decisions. This system should be based on a set of prin...
Overestimating causal influences leads to superstitions
The human mind is a pattern-seeking machine, constantly searching for causal relationships in the world around us. When events ...