4.1 Why You Keep Doing Stuff That’s Clearly Not Working - Sunk Cost Fallacy
Ever kept watching a bad movie just because you're halfway through? Welcome to the sunk cost fallacy—the reason we make dumb choices!
Ever kept reading a book you found super boring because you were already a few chapters in? Or stayed in a game that's no fun just because you already spent money on it? Welcome to the sunk cost fallacy – our tendency to keep investing in a decision because we've already put time or money into it, even if it’s not great anymore. It's like thinking, "I’ve come this far, I can't quit now," even when quitting would actually make you happier or better off.
What is the Sunk Cost Fallacy?
First, what's a "sunk cost"? It's a cost (time, money, effort) that you can't get back. It's sunk into the past. The fallacy part is when we make decisions based on those irretrievable costs instead of the future benefits. In plain English: we do something we don't actually want to do anymore just because we already spent something on it. It's a mental trap—because that time or money is gone no matter what, but we often act like doing more will somehow justify it.
Simpler: Don't let past effort force you into more effort if it’s not worth it.
Real-Life Sunk Cost Fallacy Examples
Boring Movie or Book: You're halfway through a movie on Netflix and it's meh. You tell yourself, "Well, I've already watched an hour, might as well finish it." That's the sunk cost fallacy talking. The hour you spent is gone whether or not you finish the movie. If you truly aren't enjoying it, finishing it just wastes another hour. You'd be happier switching to something else, but your brain says "you've invested, so stick it out." Same with a book: 100 pages in and not loving it? It's okay to drop it and find one you enjoy!
Toxic Club or Activity: Say you joined a club or a team sport, and after a few months you realize you hate it. Maybe the vibe is off or it's taking too much time from other things. Yet, you think, "I can't quit now, I've been doing it since the start of the year." That's sunk cost fallacy. The months you spent are spent. The question is, would you be happier or more productive if you freed up that time for something else now? If yes, quitting might actually be the smart move, despite the past investment.
Video Game Grind: You chose to main a certain character in a game and you've poured hours into leveling it up. Now you realize you don't like that playstyle or there's a new character that's more fun. But you hesitate to switch because you've already put so much time into the first character. Sound familiar? The sunk cost fallacy might keep you grinding a not-fun character just because of past effort. In reality, starting fresh with a character you enjoy will make your gaming time better, even if it feels like "wasting" the old work (which, remember, served its purpose for learning).
Relationships & Friendships: This one can be tough, but sometimes we even do this with people. You might think, "I've been friends with this person since 5th grade, I can't drift apart now," even if the friendship has become one-sided or unhealthy. History alone isn't a reason to stick around if things have changed for the worse. It doesn't mean you should drop friends at the first disagreement (definitely not), but don't use "we go way back" as the only excuse to endure a toxic situation.
Challenge: Know When to Walk Away
Let's make sure you're in control, not the sunk costs. Your challenge:
Think of one thing in your life you’re doing mostly because you've already invested in it, not because you still want to. It could be a show you're watching, a project, an old hobby, anything.
Ask yourself: "If I hadn't already spent the time/money, would I start this today?" If the answer is no, that's a big clue.
Give yourself permission to change course. It might mean dropping that thing or trying a new approach.