You began watching a web series and enjoyed the first few episodes, but the later episodes aren't as interesting as the earlier ones. Instead of stopping to watch it, you try to watch the entire series even though you didn't enjoy it. You do this for the sake of "Let me finish it since I've watched this far.”
Unknowingly, a buddy of mine invested in a bad financial product. After paying his premiums for the previous two years, he observed that the profits were meager. Now, he is aware that the investment will yield low returns, but he chooses to hold onto it for the following four years to avoid exit load charges.
This is known as the "sunk cost fallacy”: anchoring to your past decisions even after knowing they were incorrect.
It's equal to a stranger making a major decision for you and you following through on it.
A different person (past you) made the decision. Rather than clinging to it, you must acknowledge your mistake and alter your course.
If you see anything wrong, stop there and redirect your focus in the direction of your interests.
Many bad decisions will be made in our lives, whether it be entering into a toxic relationship, making a poor investment, buying an unnecessary item at a 50% discount, and so on.
You don't have to remain with your decision just because you invested the time, money, and effort to make it. Move on if it isn't working.
Until next time,
Peranesh xx ☘️
🖤My Favorites things about this week
20 books in 20 minutes - I’ve written a post on the books I read in the year 2022 and my takeaways from each one as short as I can. For book lovers, this would be a fantastic book recommendation.
How Nykaa’s Genius Financial Strategy Backfired? - An excellent explanation of how an IPO and stock split function can be found in this Think School YouTube video. Additionally, explained how Nykaa's clever stock split technique damaged its reputation.
Resurfaced from the book “Show Your Work”
“The impulse to keep to yourself what you have learned is not only shameful, it is destructive. Anything you do not give freely and abundantly becomes lost to you. You open your safe and find ashes.” —Annie Dillard
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