In economics, sunk costs are irrelevant. When you are working on your breakthrough, sunk costs matter.

In economics and business, the conventional wisdom is to avoid the sunk cost fallacy, which basically states that making decisions based on past decisions is unwise, because every decision and cost up until this point is irrelevant. In other words, it is unwise to stay the course solely based on past decisions. This is understandable and makes plenty of sense from an economics standpoint. Years ago, I had a project car that I kept sinking money into, and the only reason I continued to sink money into it is because “I already had so much into it.” Sounds silly right? That’s because it is. Still, as with most rules, there are exceptions.

Sometimes in life you would be wise to consider your sunk costs to keep going, to keep you on the straight and narrow path. When you face that questionable decision at work, when that woman or man makes a pass at you, when you find an opportunity to gain at the expense of someone else, it certainly is good to say to yourself, “I have come too far to blow this.” I am sure many look back wishing they had considered their sunk costs before they blew it all on going back to that old habit, falling for that lustful sin or abandoning their responsibilities for a selfish, short-term reward. In economics, sunk costs are irrelevant. When you are working on your breakthrough, sunk costs matter.

🧠 What have you invested—time, energy, resources, or relationships—that you are tempted to dismiss because you haven’t seen the breakthrough yet, and what would change if you viewed those sacrifices as part of your preparation rather than as losses?


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