On Sunk Costs
A definition I like of sunk costs: a gift from your former self.
If someone gave you a computer that was half broken, you probably wouldn’t accept it – you’d get a proper one. If someone gave you a project you’d hate doing, you probably wouldn’t take it – you’d go and do something you’d like. So, why do we hold onto things like this when our former self gives it to us?
We often hold onto our past accomplishments and hard-earned statuses far longer than we should. The only way to keep growing is to do something new – and the path to something new requires you to leave things behind.
Credits: Seth Godin
2 thoughts on “On Sunk Costs”
Hahaha Eric even in finance, we are always taught to be forward looking and forget about sunk costs. If you believe in the future of something, then theres no need to look at the past.
Haha, interesting how this applies to different domains. Thanks for sharing!