“I bought a ticket for a very cool event tonight but it’s cold. My friend has cancelled because she is sick and I don’t particularly want to go alone. But I’ve paid for the ticket so I’m going to go!”
This is how content creator Candilicious started one of her posts, beautifully demonstrating the impact sunk cost can have on behaviour.
Had she not already bought the ticket, there’s no way she would have gone, but the pain of wasting a ticket she’d already spent money on was enough to push her forward.
Sunk cost is both a blessing and curse.
It can help us persevere and follow through on commitments.
But it can also trap us, encouraging us to stick with things too long or throw good money after bad.
So, before deciding to continue with something ask yourself “If I hadn’t already spent time, money, or effort, would I still do this?”
It will help distance yourself from what’s happened in the past, and focus instead on the best course of action right now.
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