Sunk Cost
Franc Lost
“Sunk costs are those which have already been incurred and which are unrecoverable.”
We all experience raw moments where we sank deep in sunk cost. Why does it induce guilt or incur pain? What are fascinating solutions? Well, ironically, for starters, do you have a ‘Coin’?
Coin Toss Anyone?
If you didn't get it, that was entirely rhetorical. However, on a more serious note, we often reach a fork in our lives and yield as we ponder which is the most desirable route for either the immediate future or further down tomorrow?
As silly as it sounds, you flip a coin. What if I showed you it was more profound than that. Imagine and follow along here, you come to a significant decision in your life, and you are genuinely stuck. You've played the scenario of both alternatives repeatedly and still can't conclude. Is the stress worth it? The pressure is never the answer, yet alas, as humans, we fall back on it out of naturally ill-minded trained behavior. Is your decision as simple as flipping a coin? If you chose 'Heads' and your answer was 'Tails,' then there is no changing it. Because you cannot go in the past and undo the flip, you must now go with full passion for 'Tails'. Fall in love with this choice, never look back at 'Heads,' or where 'Head' could have lead you, or if 'Heads' would have been a better option. Eradicate all existence of 'Heads' options and all that remotely connected with it. IT WORKS.
Contradictory to my advice, I completely misremembered this strategy in application to a recent monetary purchase. Now, how ludicrous is that? This pandemic superseded a horrendous schedule that frequently we forget to STOP, BREATHE, and RECOLLECT ourselves. With a moment of clarity, I would have remembered my long-time mastered skill. Yet, here I was, at a fork of guilt and incurred pain over a recent, what I felt rushed decision and a hefty purchase.
I am currently renovating and updating my Spa for a further secluded luxury and an escape from the world ambiance. Due to the nature of renovations, the contractor told me to arrange a sink before plumbing installation.
Amidst a pandemic and in the middle of extreme focus on my most essential and meaningful autoimmunity blog, one I procrastinated writing for six months; I had to choose a sink. Like any normal being, I instantly began to stress and began an absurd internet search.
I paused and went out for fresh air and thought I should not rush this. I studied my situation and considered, "Okay Aneela, you cannot really go shopping to all stores in a pandemic. Home Depot and Loews hold zero options for your spa vision so what will you do?" A friend recommended a shop a few blocks from my home. It's never crowded there due to hefty prices and the pandemic. So I thought, rest assured, this is a good place. The sales rep was kind and helpful, and I truly relished my first experience customizing a special order sink for my lovely clients. Where I originally intended to spend three to four hundred, I ended up paying twelve-hundred. However, I was pleased with it and excited for my clients to show a jaw-dropping reaction. Well, that is until we as a family decided to make a spontaneous trip to IKEA out of desperation of going nowhere in this pandemic and cooped up for an entire year.
As we walked by the vanity area in IKEA, I noticed a sink that would have worked just as acceptable, and it was under by original three-hundred dollar budget. I fell into deep disappointment and felt the pain of a nine-hundred dollar loss.
The next morning when I posted about this loss, a lovely woman sent me the preceding link to 'SUNK COST.' Immediately after reading this quote, I felt better, and my mind drifted into its clarity position, and my flip-a-coin strategy came back to me like a blow of wind.
And that's that: no more regret, no pain. The truth is I did enjoy my purchase according to my circumstances, the pandemic, proximity, the joy of designing my sink for my luxury feel Spa, and a personal sales rep. IKEA could not provide me this. So I never looked back, and I await the installation of my lovely designed sink.
See images below of my choice versus IKEA.
My Choice Vessel Sink
IKEA Vessel Sink
Shuffling Money
Here's another alternative I fall back on automatically to get over 'sunk cost.' I call it 'Shuffling Money,' AKA random budgeting. I edit my future expenditures to restricted guidelines and up to a specific date. For example, if I desired to compensate nine-hundred dollars, I would adhere myself a realistic date and uphold it with no leniency. I will abide by not spending on frequent purchases (manicure, pedicure, hair styling, jewelry, makeup, shopping, eating out, or spontaneous purchases), whatever it takes till I soothe my pain. I am pretty successful at it. Although after recently learning that the term 'sunk cost' actually exists, it's a flaw in my strategy as the money is still unrecoverable, and this shuffling money for a preceding expense could also be considered newfound savings. However, I prefer to see the glass half full, and I will proceed to shuffle money. Because in reality, it is challenging not to spend or save for an extended amount of time, this will only aggravate your pain. So next time, opt for 'shuffling' rather than 'suffering.'
Growing Money
Last but not least, 'Grow money.' Increase your income. If you hold a stable job, apply for overtime hours. If you're an entrepreneur, increase your knowledge in social media marketing and attain more clientele, up to your gain by upping your game. If you cannot do either, go through old belongings and assess what you do not need or not used in a while and auction it on eBay, social media platforms, or the many other avenues of sale. If you do not possess anything you can sell, search for free items on the internet, and then list them for sale (assuming it is abiding by the rules of the giver.) Lastly, if none of these work, ascertain your skill and start a small side job on the side as a hobby. It will help you feel you contribute, earn money, and feel you accomplished a goal.
Sunk Cost
What Is a Sunk Cost?
A sunk cost refers to money that has already been spent and which cannot be recovered. In business, the axiom that one has to "spend money to make money" is reflected in the phenomenon of the sunk cost. A sunk cost differs from future costs that a business may face, such as decisions about inventory purchase costs or product pricing. Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.
KEY TAKEAWAYS
Sunk costs are those which have already been incurred and which are unrecoverable.
In business, sunk costs are typically not included in consideration when making future decisions, as they are seen as irrelevant to current and future budgetary concerns.
Sunk costs are in contrast to relevant costs, which are future costs that have yet to be incurred.
Gained Wisdom
What Is Gained Wisdom?
Gained wisdom refers to new knowledge and emotions acquired through the experience of undesired emotions. In life, the point is to live and learn not to live and regret. So what is done is done. A new perspective is "spend money and make money." Life is short; rather than scowling in misery, follow your gut. If you spent where you felt valid at the moment, then never regret your decision. If you would not repeat it, you learned something, and you grew wisdom.
KEY TAKEAWAYS
Sunk costs aren’t the worth regret and pain. Use the suggested tips and move on.
Scientifically there is no pain no gain. It just is and you just are. Emotions only make you ponder an undoable past. Forget past concerns.
Woulda, Shoulda, Coulda, Blah, Blah, Blah…
Coin Tossed Yours,