The Psychology of Depression and Anxiety - Dr. Scott Eilers Why Do We Hold On To Things That Hurt Us? (Sunk Cost Fallacy Explained)
Oct 10, 2025
Explore why we often cling to harmful jobs and relationships due to the sunk cost fallacy. Discover how the emotional toll of realized losses can trap us, and learn the concept of inverse sunk cost, where we believe it's too late to start fresh. Through relatable examples from finance and dating, understand how our past experiences, even failures, provide valuable insights. Finally, get practical tips on overcoming these mental barriers and taking action today!
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Why Loss Feels Unreal Until You Quit
- Sunk cost fallacy makes us stay because loss doesn't feel real until we quit.
- We defer pain by hoping the investment will eventually matter again.
Apple Stock Example Of Sunk Costs
- Dr. Scott Eilers uses an Apple stock example to show sunk cost behavior with small vs large investors.
- The larger investor stays hoping to avoid the painful realized loss while the smaller investor cuts losses quickly.
Stop When Doubt Is Overwhelming
- If you're 80–90% sure something won't turn around, stop investing in it.
- Each day you wait increases the cost and pain of eventual exit.