Sunk Cost Effect

Have you ever been so guilty of something you cringe when people talk about it? When you’re with a group of people talking about bingeing on dessert and your stomach churns because it is your kryptonite…and you also just ate an entire chocolate cake. This is how I feel when I think about the Sunk Cost Effect.

I am an emotional guy. I am an optimistic guy. I am also a nice guy. The poster child for the sunk cost effect. The sunk cost effect: Continuing down a path simply because of the time or money you have invested into it up to that point. If it is the wrong path the best action to take is to stop. Immediately. Stop throwing good money at bad. Stop investing good time into bad. Stop investing your heart-wrenching emotions into bad. You don’t need to make it “Worth it.”

That product you’ve worked on for so long and invested so much money into but can’t get right. Cut it loose.

That employee that has been with you for so long but just can’t seem to get out of their own way. Cut them loose.

I do this heavily with projects, books and people. I keep pushing that project because “we’ve come this far.” I finish books I didn’t like two chapters in because I committed to reading it. I am consumed in thinking about the people I used to be friends with that don’t bother making time for me because we have a history.

The project isn’t going anywhere.

Put the book down and pick up one you like.

Stop reminiscing about the good days with the friend and invest in the people who care now.

History shapes the future but doesn’t ever come with it.

Published by: KC Holiday

Husband, Father, and Entrepreneur who founded QALO in 2013 and has a passion for using his own learnings and experiences to help others. I love building brands and helping the entrepreneurs behind them become leaders. Thanks for stopping by, never hesitate with any questions.

Categories BusinessTags, 4 Comments

4 thoughts on “Sunk Cost Effect”

  1. Damn this is so true!!! I have learned Friends partake in a Season of our lives. When the well dries up for them the season is over…Just being Real!

    Craig Holiday Holiday Consulting



  2. Guilty as charged! I tell myself it’s because I have strong commitments, but really it’s because I have a hard time letting go. Even when it is the best thing to do, financially and/or emotionally. It’s a very good reminder – thank you!


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