GLOSSARY · BUDGETING, SPENDING & SAVING

Sunk cost fallacy

The tendency to keep spending on something because of what has already been spent on it, even though that money cannot be recovered whatever you decide next. A sound decision looks only at future costs and benefits. Asking whether you would buy the thing today, at today's price, is a simple way to set sunk costs aside.

Also called: sunk cost effect, sunk cost trap
COMPUTE IT WITH YOUR NUMBERS
Subscription cost audit →How much am I really paying for subscriptions per year?
LEARN IT PROPERLY
CHAPTER · SUBSCRIPTION & RECURRING COST OPTIMIZATION · DEEP DIVEJudging What Each Subscription Is Worth
RELATED TERMS
Cost per useSubscription creep
SOURCES
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