The Sunk Cost Fallacy

What This Mini Book Helps You Understand

The sunk cost fallacy happens when people continue something mainly because they have already spent time, money, or effort on it. This guide explains why past investment can trap decision-making and how to ask a cleaner question: would I choose this again today? It is useful for money, projects, relationships, habits, and business decisions.

Key Takeaways

• Past cost should not control future decisions.
• Continuing can feel responsible even when it creates more loss.
• A fresh decision question can reduce emotional bias.
• Quitting the wrong thing can be a wise choice.
• The goal is better future value, not defending past effort.