Lesson 155: Know When To Cut Your Losses
Sunk Cost Fallacy is real. Individuals commit the sunk cost fallacy when they continue a behavior or endeavor as a result of previously invested resources (time, money, or effort) (Arkes & Blumer, 1985). Just because we’ve put in something doesn’t mean we should keep putting in more till we get the result we want even though it’s evident we won’t get that result. We need to learn to cut our losses, take the lesson learned and move on.
PROMPT: How do you decide when to cut your losses?