What is sunk cost?
It is when you put time and/or capital money investment into something, into some big effort.
It could be an opportunity, your practice, or an investment.
It could be in your home, such as fixing your house, adding a pool to your backyard, fixing your garden, etc. It could even be a project you do with a group.
You have invested time and capital and loans, you have worked really hard.
Then you realize one day, you need to make a change; new opportunities have come up.
But, here’s the problem …
The time and capital you have already put into something is the sunk cost you have already accumulated.
You have put effort into something, and now you need to make a change.
There’s no way around it.
Once you have put effort into something, it’s hard to let it go.
It’s difficult to cast it away before the profit is there.
It’s hard to take a loss, or short yourself on an opportunity. You never get your time back …
I have been there myself. It’s human nature. We all want what we’ve put effort into to work.
It’s really hard to let go.
For example, I hear people say they bought a big house for their family to live in. What they don’t realize is that this is a sunk cost. Here, they have this big house, but they also have an expensive mortgage and a lot of maintenance costs.
It’s always better to put that same amount of money or investment that was previously a sunk cost, into something else more lucrative.
Ramp the curve up.
Compound that nest egg into something much faster.
Dial it down.
It’s better to do this, and it makes sense; but yes, it can be hard to make this change.
Sunk Cost Fallacy: You stay in it because you have already “sunk” so much into it.
Solution: You need to find someone with an objective point of view to point you in the right direction.
One person or a group of people to lead you down the road to success, and help you get out of the sunk cost you have accumulated thus far.
I love working with a mastermind group, a board of advisors, to help me make these hard decisions.
These experts are people that don’t have an agenda on me, and they help me become clear on what I need to do next.
Sunk cost: You get so deep into something, you can’t let it go.
A mastermind group can help you get out of this mindset.
The longer you stay in your ‘sunk cost’, the longer it will hold you back.
Make some clear decisions in your life.
A mastermind group can help.
Sunk costs will hold you back like a ball and chain.
Let someone with clear eyes help you through this. They can get you out.
To see if Freedom Founders would be a good fit for you, start here: https://www.freedomfounders.com/step-1