Jack McKiernan

Ever find yourself sticking with something—whether it’s a project, relationship, or investment, simply because you’ve already put so much time, effort, or money into it?

That’s what we call the Sunk Cost Fallacy. It’s a common trap, and we all fall for it at some point.

What is the Sunk Cost Fallacy?

The Sunk Cost Fallacy is the tendency to continue investing in something that’s no longer serving us, just because we’ve already invested so much.

We think, “I’ve come this far, so I might as well keep going,” even when deep down, we know it’s time to move on.

In reality, those past investments, whether time, money, or energy, are sunk costs.

They’re already gone and can’t be recovered. But we let them cloud our judgment, convincing ourselves that quitting would be a waste.

Everyday Examples: Where You Might See It

The Sunk Cost Fallacy shows up in all areas of life. Here are some common examples:

Staying in a Relationship: You’ve been in a relationship for years, but it’s no longer healthy or fulfilling. You might stay because “we’ve been together for so long,” even though it’s clear that moving on would be better for both of you.
Holding Onto a Project: You’ve been working on a project at work or home, but it’s not panning out, a bit like this newsletter…. Instead of cutting your losses and moving on to something more productive, you keep going because “I’ve already put in so much effort.”
Sticking with a Purchase: You bought an expensive item that you barely use. Instead of selling it or giving it away, you keep it because “I spent so much money on it,” even though it just collects dust. I am a sucker for this one!

The Fallacy Trap: Why We Struggle to Let Go

We’re wired to avoid loss, which is why the Sunk Cost Fallacy is so powerful.

It feels painful to give up on something we’ve invested in. But holding on just prolongs the inevitable. The truth is, letting go of what’s not working opens the door to new opportunities that might actually serve us better.

How to Spot the Sunk Cost Fallacy in Your Life

Here are some ways to identify when you might be falling into the Sunk Cost Fallacy:

Ask Yourself, Would I Start This Today? If the answer is no, it’s probably time to reevaluate your commitment.
Check Your Motivation: Are you sticking with something because it’s still valuable, or just because you’ve invested in it?
Look at the Bigger Picture: Sometimes we get so focused on not “wasting” our investment that we miss the bigger picture—what’s actually best for us moving forward?

Tips to Break Free from the Sunk Cost Fallacy

It’s tough to let go, but here are some tips to help you avoid falling into this trap:

Embrace the Loss: Acknowledge that what’s done is done. Those sunk costs are gone, and continuing won’t bring them back.
Focus on Future Value: Shift your mindset from what you’ve lost to what you stand to gain by moving on.
Make a Pros and Cons List: Sometimes seeing the situation in black and white can help you realise that sticking with something isn’t worth it.

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Your Challenge: Recognise When to Move On

This week, take a moment to reflect on any areas of your life where you might be falling for the Sunk Cost Fallacy.

Whether it’s a project, a relationship, or even a hobby,

Ask yourself: Is this still serving me, or am I just holding on because of what I’ve already invested?

By letting go of what no longer works, you create space for new opportunities, new growth, and a fresh start.

Stay clear-headed and keep moving forward,

Jack

@Jmckiernanbooks

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