How many things are you doing in your life simply because you’ve already devoted so much time, energy or money to them so far?
I stayed on the brokerage side of my industry even though the inherent toxicity of the business model had become apparent to me years ago. It was all I knew and I had childishly expected it to get better, to somehow become a more worthwhile endeavor if I’d only just stick it out a bit more. I know guys who still show up at that job every day, despite the fact that its inescapable futility had already occurred to them years ago. Part of it is fear of the unknown, but mainly, this inertia is a Sunk Cost Fallacy phenomenon.
The Sunk Cost Fallacy goes something like this: “Once you’ve irrevocably paid for something you should take that into account when considering what to do next.”
Nonsensical and totally illogical. And yet we do it to ourselves it all the time…
So you’ve paid to go to this gym for three months even though you’re seeing no results – I can’t quit now!
So you bought a stock right at its all time high – How can I sell it here? Look what I paid for it!
So you’re dating someone and it just doesn’t seem like marriage is something they’re interested in pursuing – But I’ve put so much time into this relationship! Don’t I owe it to myself to see how far it can go?
So you’re slaving away at a dead-end job – How can I quit now after so many years? I’ve paid my dues, haven’t I?
So you’ve been keeping your money with a manager whose whole outlook and strategy, despite the eloquence with which he explains his thesis, has been completely wrong – I can’t give up on him now! Not just before he’s about to be proven right!
The Sunk Cost Fallacy keeps you in error, it steals the most precious resources you have at your disposal – opportunity and time.
It’s poisonous, identify it and cut it out sooner rather than later.
Hey, I believe your web site may possibly be having browser compatibility concerns. When I appear at your blog in Chrome, it seems good but when opening in Web Explorer, it has some overlapping. I just wanted to give you a fast heads up! Other then tha…
[…]Wonderful story, reckoned we could combine a few unrelated information, nonetheless truly worth taking a appear, whoa did a single discover about Mid East has got additional problerms also […]
[…]we prefer to honor numerous other net internet sites on the web, even though they arent linked to us, by linking to them. Below are some webpages worth checking out[…]
[…]although internet sites we backlink to below are considerably not associated to ours, we feel they may be truly worth a go through, so have a look[…]
[…]we prefer to honor many other web sites on the net, even if they arent linked to us, by linking to them. Under are some webpages really worth checking out[…]
[…]very couple of web sites that come about to become comprehensive below, from our point of view are undoubtedly effectively really worth checking out[…]
[…]Wonderful story, reckoned we could combine a couple of unrelated information, nevertheless definitely really worth taking a look, whoa did a single discover about Mid East has got more problerms too […]
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Subscribe & Reform
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
خرید دوربین لامپی
Hey, I believe your web site may possibly be having browser compatibility concerns. When I appear at your blog in Chrome, it seems good but when opening in Web Explorer, it has some overlapping. I just wanted to give you a fast heads up! Other then tha…
free download for windows pc
[…]just beneath, are a lot of absolutely not associated sites to ours, even so, they’re certainly worth going over[…]
apps for pc
[…]Wonderful story, reckoned we could combine a few unrelated information, nonetheless truly worth taking a appear, whoa did a single discover about Mid East has got additional problerms also […]
Pinganillos para examenes
[…]The information and facts talked about within the article are some of the most beneficial out there […]
what’s the best vibrator
[…]very couple of web-sites that transpire to be comprehensive below, from our point of view are undoubtedly very well worth checking out[…]
travel watch
[…]we prefer to honor numerous other net internet sites on the web, even though they arent linked to us, by linking to them. Below are some webpages worth checking out[…]
anal play kit
[…]although internet sites we backlink to below are considerably not associated to ours, we feel they may be truly worth a go through, so have a look[…]
make money
[…]we prefer to honor many other web sites on the net, even if they arent linked to us, by linking to them. Under are some webpages really worth checking out[…]
pure enrichment peak
[…]very couple of web sites that come about to become comprehensive below, from our point of view are undoubtedly effectively really worth checking out[…]
sex movie
[…]below you will locate the link to some websites that we assume it is best to visit[…]
Mason Contractor in Brick NJ
[…]here are some hyperlinks to web pages that we link to due to the fact we consider they may be really worth visiting[…]
free work at home jobs no fees
[…]Wonderful story, reckoned we could combine a couple of unrelated information, nevertheless definitely really worth taking a look, whoa did a single discover about Mid East has got more problerms too […]
Exchange Bitcoin with instant paypal
[…]The info talked about within the article are some of the very best readily available […]
P-spot
[…]we came across a cool web-site which you might delight in. Take a appear when you want[…]
leather strap on
[…]Every the moment inside a though we opt for blogs that we study. Listed below would be the most up-to-date web-sites that we pick out […]