.png)
What is it?
This fallacy is the tendency to continue with a project or endeavor because of the time, money, or effort already invested, even when it's clear that it's no longer a good idea. It's about 'throwing good money after bad.'
Examples
"I've already spent so much money fixing this old car, I have to keep fixing it now."
"We've been in this relationship for five years; we can't break up now, even though we're both unhappy."
How to Avoid This
When making decisions, focus on the future costs and benefits, not the past ones. Sunk costs are gone and cannot be recovered. Ask yourself, 'If I were starting from scratch today, would I still make this choice?'
How to Counter This
If you see someone falling for this fallacy, gently point out that the past investment is irrelevant to the future decision. 'I know you've put a lot into it, but let's think about what's best for the future, regardless of what's happened in the past.'