Ep. 194 - Sunk Costs
ESGfitness
Emma Storey-Gordon
4.9 • 669 Ratings
🗓️ 17 February 2021
⏱️ 44 minutes
🧾️ Download transcript
Summary
Today's episode is on the sunk cost fallacy.
Sunk cost is the tendency to plow more resources into continuing in the wrong direction because of your initial investment in time, money, effort.
It’s staying in a loveless marriage because you’ve been married for 10 years.
Continuing to walk in the wrong direction because you’ve already walked 2 miles that way even though you are going the WRONG WAY.
Putting more money into a failing business because of your initial investment.
I also discuss how you can channel this into using sunk cost to your benefit.
@ESGfitness
www.ESGfitness.co.uk
Transcript
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| 0:00.0 | Hello, you are listening to the ESG Fitness Podcast. Welcome along. Today's topic is the sunk |
| 0:11.2 | cost fallacy. I love this, but I get quite a lot of messages, which I see it's a huge compliment, saying, oh, it's like |
| 0:24.5 | you're talking to me, like you know exactly what I'm thinking. And I would love to say that I have |
| 0:31.9 | this amazing magical power. But the truth is, humans are quite predictable and most of us think in similar ways |
| 0:45.2 | and fall for similar fallacies and get hung up on similar things. So I tend to know what you're |
| 0:52.8 | thinking because, A, I've worked with thousands of people |
| 0:57.6 | in a very similar position to you. And B, because I myself have been in very similar positions |
| 1:08.5 | to you. And I study and question my own thoughts, which a lot of people don't do. |
| 1:14.9 | So that might make it seem like I have this ability to know what you're thinking. |
| 1:23.7 | But really it's because of those things. |
| 1:25.8 | And because I actually consider and question my own thoughts |
| 1:28.9 | and I am a big fan of using mental models and catching myself out on my own biases and |
| 1:38.0 | illogical thought processes and this allows me to make at least least I think, to make better decisions, |
| 1:46.3 | or at least that is the aim of why I do those things. |
| 1:50.8 | And to do this, you simply need to start questioning your own decisions |
| 1:55.2 | and your own thought processes, which can be, |
| 2:00.0 | I was going to say mildly uncomfortable, but it can be really |
| 2:03.2 | quite uncomfortable. But it also allows you to pick up on potentially bad decisions and |
| 2:10.6 | your own biases as well and why you're making decisions, which I think is a really big thing. |
| 2:19.7 | Hannah bought this up, brought, |
| 2:24.5 | bought. Anyway, I spoke to Hannah about this and check-ins actually because she was talking about the podcast I did about saying no more. And she was like, actually, you know, and obviously this is a good |
| 2:30.5 | point. Like there are times where you're going to want to say yes more. |
... |
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