The Sunk Cost Fallacy- A Major Mind Mistake
Our brains make subconscious mistakes every day. I am seriously stunned at some of the subliminal blunders our minds are conditioned to respond with!
I'm a big believer that self awareness and improvement should be something we strive for every day. If we are not trying to be the best we can be, then whats the point, right? By knowing our unfortunately programmed mistakes in thinking, we can recognize them, then take steps to avoid them.
One of my favorites, and probably the most harmful (financially and otherwise) thought mistakes is the Sunk Cost fallacy.
The Sunk Cost Fallacy has us gravitating toward things we already lost.
The term sunk cost refers to a cost that has already been paid and cannot be retrieved or recovered. It does not have to mean money; it can refer to time or effort, too. It is a proven fact that the expenditure of time and effort can have an even greater value than cash because once you have lost time and spent your effort you can't get it back.
Chances are pretty high that even if you consider yourself a rational human being, you've fallen for the sunk cost fallacy many times.
It happens at restaurants. You are full, but you are paying for the entire dish no matter what, so you might as well finish the whole thing. "Might as well not waste it."
It happens in relationships. You realize you are unhappy after a year and a half. But you have already invested 18 months of time and effort, so you stay, sometimes with hopes that your investment will pay off because they will realize how very much you have given thus far.
When we invest time, money or effort into something, we develop an attachment to it and justify some pretty irrational behavior. Even though it's already been paid for, we cannot ignore the cost because we are wired on a genetic level to feel loss more than gain. Psychologist Daniel Kahneman explains:
This is such a strong mind mistake that when you look at it from the outside in, such as we are reading about it now, we can see the best choice glaring us in the face. This study in 1985 is a beautiful example:
The sunk-cost fallacy misleads us to make irrational decisions based upon our emotions- and emotional thinking is usually never good- while blatantly ignoring the logical facts before us.
And the worst part is we don't even realize we are doing so!
The fallacy prohibits you from comprehending the fact that the best choice is to do what is the best thing for you now and in the future as opposed to the one that rescinds a feeling of loss.
So how do you free yourself from the sunk cost fallacy chains?
By reading this post you are taking that leap. Because it is a subconscious reaction, the best thing you can do is realize you are doing it. At that point your logical mind takes over and can overrule the irrational response.
For instance, look at the vacations: Your logical mind would choose the cheaper yet funner holiday.
You must remember that you can’t get your investment back. It’s gone. Never allow it to cloud your judgment in the decisions you make in this moment.
And you're going to have to chalk up the past loss as just that and let it remain in the past :)
Live your life for a happy today and comfortable future.
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That feeling of loss, either financial, time, emotional can be so strong that even when you do see it from a rational point you still can’t let it go! It’s the letting go that’s sometimes the hardest thing to do, not just recognising the loss itself.
That feeling of loss is quite powerful. But it can be so freeing when you realize what you gain ;)
Very true!
Happened to me many times same as your example at restaurant 😊😊😊 but in life it is happening to many of my friends especially on their relationship, I was actually thinking to make a blog about the saying love is blind but after I read your blog, i realized that love is not always the reason that they are still holding on now I understand it is more on SUNK COST FALLACY, they invested effort love and time to their partner so even of they are being hurt they're still holding on,
thank you for another Eye opener blog ms. @arbitrarykitten ....😊😘
Exactly. Of course there's probably some love still involved, but its the sunk cost and emotional investment of time and effort that makes people stay in an unhappy or even toxic relationship.
The lack of critical thinking, logic, and philosophy - along with the promotion of social, humanity 'sciences' in our education system , has done the young a massive disservice.
Thinking critically and non emotionally, is a tool to be used and honed, just like any other.
Not having these tools given to us in the formative years,(education) it makes for a very 'emotionally driven' perspective in every area of life.
(area's where emotionally driven decisions are not an advantage).
Having to discover these talents later in life without a earlier grounding in them, can be very difficult for some to achieve.
So very true. The educational system is truly flawed in this regard.
Ugh, I've been guilty of this plenty. Currently reading Thinking Fast and Slow by Daniel Kahneman. This details a lot of logical fallacies and biases similar to Sunk Cost. I highly recommend it.
Thank you so much for this, I'm going to check it out on Amazon right now.
Every woman who ever dated me because I "had potential" or was a "fixer upper" is guilty of the sunk cost fallacy. They're all like, "I wasted three years of my life on you!" and I'm like, "I'm a grown man in my underwear chainsmoking and drinking 40's of malt liqour while fucking around on the internet. What did you honestly expect to happen?"
Right? Where were their minds!
I've definitely fallen for this fallacy plenty of times myself. One of the most modern ways? Continuing with a show on Netflix even though you've decided you don't like it any more, just because you've watched so much already.
Yes! Or a series! Lol im so guilty!
This happens alot. Alot of us are guilty of this. Mehn to take up decision after spending years in a relationship is not that easy. But like you said, we have to realise we are just doing it so you dont get your mind clocked up when things went otherwise @arbitrarykitten
Exactly :) If we only take the emotions out of the decision making progress, we can have such productive lives.
Save the emotions for the fun stuff and entertainment ;)
Definitely feeling this lately. It reminds me of, "when all else fails, there's always delusion."
Since I've kicked some addictive habits, with alarming ease, I am in this strange state of mind where I feel I've come to understand a new depth to how much these fallacies as well as general brainwashing come into play in our lives.
If you'd asked me a year ago what I thought of people I'd say things like "ignorant, sheeple, don't care about what's morally right." Basically a bunch of negative criticism stating that everything bad is all their fault.
Now, it's more like. The whole world is in a prison, each person in their own cell. The way out is you've got to "pull" the door instead of "push." You can yell all day to simply pull it open and walk out, but people just think you're crazy, leaning towards dangerous.
Very nice post.
That is very interesting. Do you feel that the chemicals you were addicted to clouded/jaded your judgement of people?
Hrmm. I don't know about jaded or clouded judgement.
It's like being kept in a cage of people. Eventually everyone starts starving and you, as well as the others, are seeing food in place of people(this analogy just for you AK) When you're addicted, you're in the cage.
When you're no longer addicted, you're outside the cage. You bring people food to inhibit cannibalism and try to explain how to get out of the cage.
Same as if someone you care about tells you they're in a bad mood. They warned you that you might get bit, but if you see them suffering, you feel compelled to help them feel better.
If you were in a bad mood for the same reason as them at the same time, you'd get away before you claw at each other.
Sometimes, when I become aware of such choices (becauseoften times we are unaware) I can take Scleranthus, which is a Bach Flower Remedy and he,ps choose between choices.
I was once in a relationship that wasn't for me, and I spent nearly four years with the guy but I knew within the very first year that I would not be able to trust him and that I was not satisfied on several levels of he relationship. I knew after two years that I would not marry the guy. And it didn't click. It clicked that I did not love him or that I was not happy in that relationship when the love of my life was right in front of me and I was like "okay, I want this person in my life instead."
It's tough sometimes to become aware, since sometimes it's on a subconscious level.
I was just thinking about you today! I've missed you!
Yeah, usually we are not aware. But by realizing this is something we naturally do we can bring this to the forefront of our minds and that helps greatly.
Thanks for the suggestion of the Scleranthus!
I am happy you are finally with the love of your life <3
hehe that's funny. You sensed my energy on your blog ;)
I've been around. It must be the inconsistent waking hours. Th other week I was awake for a full 30 hours (I have no idea how that happened) and then slept for 16 hours. I think my hyperactivity is returning, but since I'm burnt out, I don't do much, so all that energy is mental and creative, so I don't sleep. I'm going to be starting some tabata workouts since it's 4 minutes only, and I think that will help distribute the energy physically to help gain the physical energy I need now.
Tabata workout? Only 4 minutes? For energy? Im liking all those words!
Hehe my friends from France told me about it. It's 20 seconds of intensive work for 10 seconds of break, repeated until 4 minutes are up. So either cardio and then light walking around, heavy lifting or stretching.I'm going to start mellow, obviously, but I'm thinking of doing dancing. I have some fun videos I want to make where I dance emotes from SWTOR, so I need to practice, so that will be part of it, I like cardio kick boxing, I also used to do Hip Hop, and some of that with some Krump, you know. I have a nice plan, I just need to actually start it :p
Sweet. Theres a SteemitFitness (I think thats the tag) channel you can document it
Oh nice! I'll check that out. Yeah, document progress and improvements to my body and energy. I'll have to note it anyway, Steemit's a good place to note it and share it.
Once you take personal responsibility for your life and actions, you will begin to improve your ability to respond to external factors you may not have control over.
True story!