Andrew Lloyd Beaver PA | There Are Sunk Costs In All Aspects Of Life

 


Andrew Lloyd Beaver PA wants you to imagine you once thought of creating a new recipe from the YouTube video you just watched, now in your mind, it sounded delicious, but when you finally cooked it and tasted it.

But “Tasty” was the last thing the recipe was.

But because you spent hours creating it and assembling the right spices you feel the need to finish it, so you eat it and your taste buds are dead.

The point is: there is absolutely no reason in finishing a bad meal just because you started it says Andrew Lloyd Beaver PA.

Sunk costs even though being a financial term in business that is being used to inspect the investments that cannot be recovered if they were made.

For example says Andrew Lloyd Beaver PA, if a business spent $150,000 on building software and finds out it is not as great as they imagined, they can’t recover the investment costs so that should not affect the decision-making of the business.

The same goes with your personal life, just because you gave a person 5 years in your past and the relationship is bad, you don’t need to give them another 5 years of your future.

There is no point in giving so much gravity to your past to make your future decisions.

So let’s get into how these sunk costs are distributed in every aspect of your life:

Hiring decisions:

Running a business is no joke and in the constant world-threatening events it has become even harder at times, so it is more than likely people make decisions based on the past without keeping eye on their long-term plans.

For example, if you hired a bad employee 3 years ago and you have spent hours of training on him and taught him how your organization works and paid for the expensive seminars they wanted to attend.

Now just because you invested so much in that employee it may be hard to fire them even because they are terrible,

But what you might not know, is that “investments” are meant to be profitable for you and if you don’t see the results it is an either charity or a bad decision.

In fact, firing that employee may turn out to be a good decision as you can avoid further wastage of your time and training that employee.

But this is not limited to employees, if you made an investment on a “social media campaign” and the early results are turning out to be a disaster then instead of completing the entire campaign just because you created plans and spent ad credits you can learn what doesn’t work and avoid mistakes like that in future.

Social circle:

We all have heard we are the average of the 5 people we spend most of the time with, and it is a tried and tested concept.

You subconsciously or consciously began to grasp concepts and mindsets of the people in your social circle, and that is both good and bad depending on who you choose to hang out with.

If you have a friend who has a negative mindset about the world, or you just don’t feel happy around them but you are still friends with him because you knew him since high school you are falling into the trap of sunk cost fallacy.

It is hard for you to let somebody go when you know them for so long, but ultimately you are doing more good for yourself than you might think.

Just because you knew them earlier doesn't make it necessary to hang out with them forever!

Our social circle is a crucial aspect of our personal lives, so make sure you simply don’t invite people based on the time you shared in the past but on the fact that you actually like them and they are good people.

Not to be too blunt, but fake friendships are literally a dummy product you get for a cheap cost that never works when it needs to.


In other little things:

  1. Watching a terrible movie:

One of the most common ones, you might find yourself every now and then watching a movie you are not enjoying or is too predictable or baseline terrible.

If you don’t like the movie don’t watch it simply because you invested your time in it.

Walkout and watch something else.


  1. Having a terrible customer just because he is long term:

Customers are not always the king, sometimes a few of them just need to find a constant source to channel their anger, and if you have customers like that send a polite email saying you don’t want to do business with them again.


  1. Dating because you have already bought gifts for them in past:

If you went on 2 dates with the person and you bought them gifts but still didn't feel the relationship would work.

Don’t go out on the 3rd, we often get too emotionally invested in the person even if they are terrible, this is a common thing that happens to a lot of us, we often don’t have difficult conversations around people because we don’t want to waste the time spent in the past.


And that’s it, don’t fall into the trap of sunk cost fallacy, you may find practicing saying “No” to finishing a bad meal hard sometimes, but the ultimate goal is happiness and fulfillment not making it obligations.

Thank you for reading!






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