The Sunk Cost Trap — Do Not Throw Good Money After Bad Just Because You Already Spent

You bought concert tickets but feel sick on the day of the show. You have spent three years in a degree program you hate. You poured money into a failing business. The temptation is to keep going because quitting would mean the previous investment was wasted. But the money, time, or effort you already spent is gone regardless of what you do next. The only question that matters is whether continuing makes sense from this moment forward.

This is called the sunk cost fallacy, and it quietly ruins financial decisions every day. The antidote is to evaluate every situation as if you were starting fresh. If you would not buy those concert tickets today feeling sick, do not go just because you already paid. Your past spending should inform your future, not imprison it.