sunkcost

Keeping Sunk Costs From Sinking Your Decisions

Keeping Sunk Costs From Sinking Your Decisions

“Well, I’ve already got so much into this crop, might as well see it through...”

“I spent a whole lot of money to start this project, so I need to spend more money to get it done.”

If you hear yourself saying this, do not make any sudden movements. You are about to sink a decision by considering your sunk costs. “Sunk costs” refers to money that is already spent. No matter your next decision, that money is G-O-N-E with no recovery, so if you try to base your decision on those costs, you could end up throwing good money after bad.