From an article by Belle Beth Cooper in Fast Company titled 8 SUBCONSCIOUS MISTAKES OUR BRAINS MAKE EVERY DAY–AND HOW TO AVOID THEM …
“The term sunk cost refers to any cost (not just monetary, but also time and effort) that has been paid already and cannot be recovered. So it’s a payment of time or money that’s gone forever, basically.”
“The reason we can’t ignore the cost, even though it’s already been paid, is that we are wired to feel loss far more strongly than gain.”
For instance, if you buy a movie ticket only to realize the movie is terrible, you could either:
A) stay and watch the movie, to “get your money’s worth” since you’ve already paid for the ticket (sunk-cost fallacy)
B) leave the cinema and use that time to do something you’ll actually enjoy.
The thing to remember is this: You can’t get that investment back. It’s gone. Don’t let it cloud your judgment in whatever decision you’re making in this moment–let it remain in the past.
From a CNNMoney feature titled The smartest advice I ever got by Chris Larsen Founder, E-Loan.com and Prosper.com …
“Cut the lifeboats.” I heard this from Jim Collins, who wrote “Built to Last” and was the best M.B.A. professor I had at Stanford. He pleaded with the class, saying, “You’re young. You can fail two or three times, even lose all your money two or three times, and you’ll be just fine. Taking that risk puts you in the path of wealth.”
If he hadn’t said that, I probably would have taken a job, like a typical M.B.A., instead of founding a company. Starting my own business seemed so risky, but maxing out credit cards or even going bankrupt isn’t so risky if you do it at a young age. You’ll never regret taking those risks, but you might regret it if you don’t.
From the web site Paul’s Tips…
“In many cases it’s true that you shouldn’t give up too early. But at the same time, it’s a wise person who realizes when their efforts are futile.
The idea that those who keep sailing ahead despite all odds and “damn the torpedoes” are the most successful is a seductive one, and it has a certain element of truth to it. But at the same time, successful people also know when the best path is to quit. It’s simply not true that being a “quitter” is synonymous with being a “loser” in every single case. It’s time that myth was shattered.”
Simple and concise advice from Rebecca …
“Which is to say, nearly every task seems more difficult in anticipation than execution. Discipline is easy once you have momentum. Going to the gym is hard when you have to plan on going to the gym, and easy when it is simply what you always do on Tuesdays and Fridays.
Make a habit of doing rather than not doing.”
See the ten things that keep us from getting started at a post titled Whats Stopping you from Getting Started by Dustin Wax.