008 sunk-cost fallacy
When working with clients on decision-making, the topic of the sunk-cost fallacy often comes up, and I’d like to talk more about it today! First, let’s explain the concept. The sunk-cost fallacy is a cognitive bias where we continue to invest in something—whether it’s a decision, relationship, or project—only because we’ve already put time, money, or effort into it, even if it’s no longer working for us. Instead of stepping back to reevaluate the decision or make a change, we resist letting go because we don’t want to feel like we’ve wasted those past investments, even though continuing can lead to further losses!
The common mindset is, “I’ve put so much into this, I can’t just quit now!” In reality, sticking with something purely because of past effort can make things worse, not better. Therapy can help shift this mindset and encourage healthier decision-making!
Relationships: Staying in an unhappy relationship because you’ve invested years into it, and leaving feels like wasting all that time
Movies: Watching a boring movie to the end just because you’ve already sat through most of it, even though you’re not enjoying it
Hobbies: Continuing a project that no longer interests you, just because you’ve spent so much time, energy, or money on it already
Jobs: Staying in a job or career that feels unfulfilling, simply because you’ve spent years building your education and experience in that field
How Therapy Can Help:
The sunk-cost fallacy is tied to loss aversion—the fear of losing something we’ve invested in keeps us in cycles that may be more harmful than helpful. Whether it’s staying in unhealthy relationships, jobs, or habits, therapy can aid by:
Helping you recognize that past investments don’t justify staying in situations that cause harm
Reframing the situation to emphasize making choices based on current needs and desires, not past commitments
Challenging the fallacy by focusing on the benefits of change, even when it means letting go of past efforts
Guiding you through methods like self-compassion and cognitive restructuring, to help you stop feeling stuck
Teaching you to focus on the present, rather than being weighed down by past actions or future consequences
Trying new ways of making decisions can build confidence and help break free from the fallacy
By addressing the sunk-cost fallacy in therapy, we can learn to make healthier, more present-focused decisions that better serve our current well-being. Recognizing this bias can help you stop focusing on what you’ve already invested and instead make choices based on what’s best for you now. Therapy is about letting go and moving forward in a way that truly benefits your life!
