Spots

Continuing a loss feels like staying disciplined

People often view sticking with a failing effort as commitment. In reality, treating past spending as an asset to defend just turns a small loss into a bigger one.

The mistake

We hate acknowledging a permanent loss

Admitting a project failed feels like wasting everything spent on it. Doubling down creates the illusion that the original investment might still pay off.

The trap

Money already spent cannot be recovered

Past costs are gone regardless of what you do next. Spending more only drains resources that could fund better opportunities ahead.

The cost

Decide based only on future returns

A project is worth continuing only if its future benefits exceed its future costs. If you would not start it today from scratch, walk away.

The shift

Idea

Throwing Money at a Loss Is Not Discipline

Continuing a failing project to protect past spending only increases your total loss.

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@spot #decision #spending #psychology #mindset

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