Sunk Cost Fallacy! Our hosts love this topic and are ready to share some insights.
It is our human nature’s tendency to follow through on something because we have already invested time, money, etc. despite there being no benefit of continuing. This happens in all aspects of our life! From relationships to business, from timeshares to jobs.
But we rationalize our first decision to avoid the numbers. The numbers don’t lie! For example, if you own a timeshare that you pay $2000 for every year, but then you don’t have money to actually use the timeshare or the vacations would only be $500 without the timeshare, where is the benefit?
Here is another example. If you have been in a job for 10 years and you aren’t terribly happy with it, why do you stay? Have you heard yourself explain things like, “I have four weeks paid vacation,” or, “once I hit 10 years, I’ll have extra retirement benefits,” to convince yourself it is still where you belong?
There are emotional connections to every decision we make. We want to be right. We want to know that we didn’t make a mistake. But, by not acknowledging the mistake, you are continuously making the same mistake every day!
From day one, we are taught as kids to finish what we start. Do you remember being told to clear your plate before you are allowed to leave the table? Guess what? You are being trained that not finishing equals failure. We are laying the groundwork for mindset issues in the future!
So what happens if you are in this situation? Listen to the episode to find out!