It’s OK to Quit

 

I’ve already invested so much in this. It would be foolish to quit now when I’m so close. Have you said this or heard it?  Have you said this or heard it and you never got to the finish line or that project is still being worked on long afterwards? What you’re experiencing is the Sunk Cost Fallacy. 

This is a phenomenon where you’ve invested significant time and/or money into a project and believe that you must continue or lose your investment. This can often lead to a business or individual making irrational decisions and continue to pursue a project that won’t pay off or repair a car further because they’ve already spent so much on repairs. The best path forward is to strike out in a different direction but the thought of losing the investment causes more bad decisions. 

Examples of Sunk Cost

In Business: A business has invested thousands of dollars in developing a new toaster. While developing the toaster a competitor came to market with a superior toaster that has captured most of the market  the business believing they’ve already invested so much that it’s worth it to continue  the reality is that they will not be able to earn a return on their investment and would be better suited to halt product development and move on. 

Personal: You bought a gun membership after you set a New Years resolution to exercise more. Despite your resolution and the cost of the gym membership, you’ve only been to the gym a handful of times. You don’t have any desire to work out and actively avoid going to the gym. Despite this, you tell yourself that you’ve already spent 6 months on gym membership dues so it would be silly to quit now when you might use it. The reality is that you’re wasting your money every month and could get better value putting your money somewhere else.

What to do about it

Recognition: First you must recognize that the cost you’ve invested is no longer giving you the value you want  

Stop: Once you’ve realized that you’re no longer getting your money or time investment back you must stop  if it’s a business venture, cut your losses. If you have tickets to a game and no longer want to see it, don’t go  

Reflect: Look back at what happened. Ask yourself why you continued to press forward even when you knew you couldn’t get your time and money back out of it. Write down what happened and look back at it whenever you think you may be in the same situation  

Never be afraid to quit. It’s OK to quit  It’s right to say that this isn’t working out and I need to do something different. Have you ever pressed on with a project knowing you were never going to really get your value out of it? Tell me about it!