Sunk cost fallacy is a common cognitive bias that affects decision-making in various aspects of life, from personal choices to business investments. It occurs when individuals continue to invest resources—time, money, effort—into a project or endeavor simply because they have already committed these resources, even if the future benefits are unlikely to outweigh the costs.
Imagine this scenario: You invest significant time and money into activities that don’t yield tangible results. Despite evidence indicating these activities do not shape your emerging future, you find it difficult to walk away.
The crux of the issue lies in our tendency to view unrecoverable costs as relevant factors in decision-making, even though they have no bearing on the future outcome. We become emotionally attached to our past investments and struggle to let go, fearing that abandoning them would render those investments “wasted.”
However, the true sunk cost is not in the resources already invested—it’s in neglecting to shape your emerging future. Without conscious deliberation, the activities we engage in today will inevitably shape the outcomes we experience tomorrow.
Consider the low-value distractions that consume our time and attention daily. These distractions may seem innocuous in the moment, but they contribute to a future that is shaped by default rather than by design. Every minute spent on activities that don’t align with shaping your emerging future is a minute lost in building the future you desire.
So how do we break free from the grip of sunk cost distraction and start shaping our emerging future intentionally? It starts with asking ourselves a simple question: Why am I doing this?
Whether it’s pursuing a career path, maintaining wellness habits, nurturing relationships, or striving for personal growth, every action we take should be driven by a clear purpose. By answering the “I’m doing this because” questions within key categories such as career, wellness, family, spirituality, financial security, growth, fun, contribution, and relationships, we can assess whether our time is being invested deliberately or squandered on sunk costs.
Enjoy inspiration from Shel Silverstein:
“All the Woulda-Coulda-Shouldas
Layin’ in the sun,
Talkin’ ’bout the things
They woulda coulda shoulda done…
But those Woulda-Coulda-Shouldas
All ran away and hid
From one little Did.”
Reducing and eliminating distractions allows us to redirect our time, effort, and learning toward activities that contribute to our emerging future. These deliberate investments are the gifts we give to our future selves, shaping the trajectory of our lives in meaningful ways.
Ultimately, it’s about building your “I’m doing this because” vessel—providing you with a vehicle for forward motion and focus to keep you aligned with your emerging future. By consciously choosing where to invest your resources and energy, you can break free from the shackles of sunk cost distractions and chart a course toward a future filled with purpose and fulfillment.
KBD Consulting provides guidance, insight, and transformation for clients with its: You are a Hero on a Journey Career Mentoring and its Ignite: Business Startup Mentoring Programs. Contact us today to accelerate growth and creation of your Emerging Future.
