What Is the Sunk Cost Fallacy?

The sunk cost fallacy happens when previous investments of time, money or effort influence decisions that should only consider future outcomes.

Everyday Examples

• Finishing a book you're no longer enjoying.
• Keeping a failing project alive.
• Staying in an unhappy situation because you've invested years.

Focus on Tomorrow

Ask yourself what you would choose if today's situation were brand new. The past cannot be recovered, but your next decision can still improve the future.