Being open to change

I like this quote from Churchill – “To improve is to change; to be perfect is to change often”.


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Sunk cost

I think the idea of sunk cost is a concept that we need to get comfortable with to benefit all aspects of our life. Sunk cost is generally defined along the lines of a cost which has already been incurred which cannot be recouped no matter what we do. Therefore we shouldn’t take the money which is already spent into account when deciding whether to spend more money or cut our losses. An example would be if we have spent £50 on 5 spins of the roulette wheel and lost every time. The wheel does not take the previous spins into account when it is next spun so we shouldn’t be influenced by the fact we have already spent £50 when deciding whether to spend another £10. That is a completely new and separate decision. It is often said that “there is no point in throwing good money after bad” but the concept applies to so much more than just money and we can be mindful of it to our advantage.


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