The Sunk Costs Fallacy - Why it's so hard to break up

The Sunk cost fallacy takes a hold of us anywhere in life where our money, time or emotion is invested. You don't want to miss out knowing about this concept.
If you found this video helpful please subscribe, like, and share the video with someone you think it will help. New release every 10 days
Thanks for watching

Another great example of the sunk cost is one for women. When a woman buys a high priced pair of high heels, that turn out to be unbearably painful to wear. At that point she has two options: cut the losses and stop wearing the heels, even though you paid a high price. Or, continue wearing the heels because you feel like you need to “get your money’s worth.” But in choosing to continue wearing the heels, you actually lose twice. if you decide to wear them as much as possible just because you paid so much for them, you pay the initial cost of the high priced heels plus the pain your feet feel each time you force yourself to wear them, you pay the price of money and comfort whereas if you cut the losses you would only lose the money. Ask what you would do with those heels if they only cost you $10 instead of the high price you paid for them

A great thing we can do with this sunk cost feeling is to use that feeling to our benefit rather than our downfall. For instance, if you have been wanting to get into a regular routine of exercising it’s actually better to go purchase a gym membership as soon as possible. When we pay for a gym, we get that same sunk cost feeling of wanting to get our money’s worth so we will be more likely to go train more often. And the great thing is we can increase the sunk cost feeling with how much we invest, if the gym membership cost $400 a month compared to one that cost $50 a month we are much more likely to use the gym to get our money’s worth. We value most what we invest in most.

Timestamps
00:00 Intro – The Paris vs Rome Trip; The true measure of getting our money’s worth is the happiness a the trip brings us not how much it cost

02:02 The Sunk Cost fallacy

02:44 Sunk costs apply to any area we have money, time, or emotion invested

03:18 Governments affected by the sunk cost fallacy – The war on drugs

04:43 The sunk cost fallacy is knowing when to quit

05:00 Our goals and our addictions affected by the sunk cost fallacy

06:29 Our Relationships affected by the sunk cost fallacy - Why it’s so hard to break up in a relationship

07:33 Our past investment in anything becomes a reason to continue doing it – even if it is leading us in the wrong direction

07:54 The Solution – “Zero Based Thinking”

09:51 Conclusion – Don’t dig the whole any deeper than it already is