We all have limited resources
Today, I want to revisit a familiar topic that we’ve discussed in the past – the sunk cost bias. Biases play a crucial role in shaping our decisions.
Our brains employ a remarkable tool known as heuristics. This automated sorting mechanism categorizes the constant influx of information we encounter daily into manageable buckets, making us more efficient in our daily lives. However, there’s a catch – heuristics can sometimes mis-sort, leading to cognitive biases. A classic example is stereotyping, where we wrongly pigeonhole people due to preconceived notions wired into our brains.
The important thing to remember is that awareness is our best defense against biases. By recognizing their presence, we can start to counteract their effects and make better judgments.
One particular cognitive bias that gets us off track in our decisions is the sunk cost bias. We all have limited resources – our time, and money. The sunk cost bias tricks us into thinking that if we’ve invested a lot of time or money into something, it deserves more weight in our current decision-making process. Whether it’s a long-standing friendship or a problematic purchase, the sunk cost bias can impact our thinking.
To counteract this bias, ask yourself: “Even though I’ve invested time or money into something, would I choose it today?” By detaching from the time or money you’ve already invested, you gain a new perspective on what you want.“
If you struggle with the fear of making the wrong decision, want to get more of what you want out of your choices, or are just committed to becoming a better decision-maker, I have a straightforward solution for you. Our Decision Classroom offers an online, self-paced course that comes with a workbook and instructional videos. The course can be completed at your own pace.
In this course, we delve into cognitive biases, explore strategies for making high-quality decisions, learn how to take effective action, overcome decision-making roadblocks, and gain a deeper understanding of your desires when making choices.
Please don’t hesitate to reach out to me at firstname.lastname@example.org if you have any questions or need more information. We’re here to support you in your journey towards more informed and unbiased decision-making.
P.S. Don’t wait to get more of what you want out of life. Check out the Decision Classroom where you learn to create the life you want, through your next great decision. https://clarity4action.org/decision-classroom-enrollment/