When Clinging to the Past Can Harm Your Future

Cutting losses does not make you a loser, it makes you a realist.

Photo by Drew Hays on Unsplash

Have you ever stayed in a relationship beyond its use-by-date?

Do you keep clothes in your closet that you have not worn for years?

Are toxic people from your past still in your life today?

There is no shame in saying, “yes” to any of this. We are all prone to stick with people and things that no longer serve us.

Sticking with something, even when it no longer serves you, is what is known as a sunk cost fallacy.

In economics, the concept of sunk costs are costs that have already been incurred, but which cannot be recouped.

Sunk costs should theoretically be ignored because nonrecoverable costs cannot be reinvested. Of course what works in economic theory is often easier said than done in real life!

When clinging to the past becomes a factor in making decisions about your future, you run the risk of being derailed by sunk cost fallacy. — David McRaney

As humans, we can be reluctant to make changes because we value what we have already invested in terms of…