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LESSON 4 · What Makes Us Happy?

Sunk Cost Liberation

One of the hardest things to let go of is investment. You stayed in a bad relationship because of the years already spent. You finished a bad book because you started it. Economists call this the sunk cost fallacy — and it traps more lives than most people realize.

The past investment is gone regardless of what you do next. Every moment spent continuing something that does not serve you is a new cost, not a recovery of the old one. Letting go of sunk costs is not admitting failure. It is refusing to let past decisions hold your future hostage.