Pornsaran Rungcharoenkitkul. (2024, May), Sunk Cost Decisions : Gourmet & Cuisine : 114

            It's useful to be aware of whether your business or personal life has sunk costs. This is to prevent further damage due to past attachments.

            In the event that a decision has already been made to invest money, time, or effort But they cannot take advantage of that to compensate for the lost costs. This may be caused by an error or a change in the environment. No matter what we do now or in the future. cannot bring those resources back. We call things that have been invested in the past “sunk costs”. If we want to find a way to compensate by investing more. It should be considered how much additional investment will be required. And compare whether it is worth the benefits you will receive or not. Otherwise, if you invest money because you regret the costs already spent without considering future returns. The damage may be even greater because they refuse to give up because they want to compensate for what they invested. But when the project was completed, it was found that the loss was even greater than before.

            In living life as well We may collect many unnecessary items because we regret buying them. They are expensive, take up space, and cost money to maintain, even though there is no opportunity to use them again in the future. Or will you endure a job that doesn't make you happy? Because I think that I have spent many years in the profession and do not dare to change jobs. In these cases If we accept that it is a sunk cost Accept the loss that has already occurred. And looking for new opportunities in the future will be more worthwhile than life.

            However, sunk costs are an easy concept to understand. But it's more difficult in practice. Because when there has already been a lot of investment Some people may feel that it is wrong to give up for nothing. So it's still stuck. But in reality, there was nothing he could do about the investment, effort, or time he had put in in the past gone. What he can do is act on the information we currently have.

             The more we accept what has already happened, And by choosing to do what we can to make things better, the happier we will be.