Time to Stay the Course or Rethink Your Next Move?

Imagine you bought a concert ticket. As the date approaches, you learn the evening will be more time-consuming, logistically tedious, and costly than you had expected. Even though the concert no longer feels worth it, you stick with the plan because the ticket is non-refundable.

A sunk cost, as defined by Investopedia, is "an expense that cannot be recovered by additional spending or investment." Though the concept originates in finance, I love applying it beyond business decisions—time, effort, and emotional energy can be sunk costs, too.

The sunk cost fallacy is our tendency to stick with something and continue pouring resources into it simply because we’ve already invested in it, even when walking away is the better choice. The thinking goes: “I’ve put so much in, I can’t quit now.”

We’ve all been there, right? Holding onto a career, project, role, or relationship that’s no longer serving us, but we resist letting go because we’ve invested so much. It can feel like pivoting means losing, admitting defeat, or wasting what we’ve put in (ugh!). But what if sticking with it isn’t the best choice for you moving forward? Adam Grant said it perfectly: “If you're considering a career change but worried about taking a step backward, remember this: it's better to lose the past 2 years of progress than to waste the next 20.”

This concept applies to all areas of life. How often do we let fear of "losing" what we’ve invested prevent us from making choices that serve our present and future selves? What would change if you acknowledged when what you’ve invested is, frankly, a sunk cost? You can’t get back the time, effort, or money you’ve spent. The real question is: How do you want to invest your resources moving forward?

Here’s my invitation to you this week: take a moment to reflect on where the sunk cost fallacy might be sneaking into your life. Where are you holding on when letting go could free you up for something better? If you looked back 20 years from now, would you be happy you had pivoted or stayed the course?

I’d love to hear what comes up for you.

With warmth,

Amy

P.S. Not all costs are sunk costs. Some truly are investments in our future, where continued effort brings meaningful rewards. The key is to distinguish between what’s draining your resources with no return and when it still has the potential to pay off.