Sunk cost: let it go

Lesson 8 of 12 in our free Money Mindset guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Money Mindset is free for everyone.

Questions you'll answer

You paid £40 for a gig ticket. On the night you're ill and miserable. What does sunk-cost-free thinking say?

Myth: “If you've paid for a gym membership you never use, keeping it 'so you don't waste it' saves money.” — Every month you keep it costs MORE. Cancel (or actually go).
Fact: “Sunk cost thinking can keep people in bad investments or bad deals.” — Holding on to 'get back to even' is one of the most expensive feelings in money.
Fact: “It's fine to change your mind when new information arrives.” — That's not flaky. That's smart.
"I've watched 3 seasons, I have to finish this awful show" → Sunk cost talking. Your evenings are worth more than past evenings.
"The course I started isn't right — I'll talk to student services about switching" → Looking forward. Brave and forward-looking. Uni advisers help with this all the time.
"I've spent so much fixing this car, I can't sell it now" → Sunk cost talking. Ask: what will it cost from here vs the alternative?
"This subscription isn't worth £9 a month to me any more — cancel" → Looking forward. Judged on future value. Clean.