Sunken Costs
Posted by Tad Johnson - Feb 13th, 2008 at 20:02Expanding on a previous post about the psychology of investing, here’s another human psychology defect : the fallacy of the sunk cost. Reading at My Money Blog, here are some common examples of foolish decisions driven by sunken costs:
Don’t Be Fooled By Sunken Costs » My Money Blog via kwout
Have you ever found yourself making a foolish financial decision based on sunken cost? I know I have. Another great example is automobiles–is it worth spending $3,000 to fix up a $6,000 car? Maybe. But only if the replacement cost is greater than $9,000!
Outsmart yourself. Don’t fall for the sunken cost fallacy.
digg
del.icio.us
reddit
facebookNo Comments yet »
RSS feed for comments on this post. TrackBack URI
Leave a comment
Recent Posts
- Push Pause
- Meta Post : 5 great comments
- Do this today : back up your financial data
- Today’s Mandatory Reading
- Consumer Confidence
Recent Comments
- disadvantages Advantages The on Do this today : back up your financial data
- cash payday til loan on Meta Post : 5 great comments
- Roslyn Cross on Spending too much? Try cash
- Deanne Chan on Leverage in a Global Economy
- Luann Boyle on Bear Stearns
Categories
- banks
- debt
- economics
- employment
- investing
- online
- personal finance
- real estate
- retirement
- savings
- shopping
- uncategorized
- vicenarian
Blogroll
Archives
Powered by WordPress with GimpStyle Theme design by Horacio Bella.
Entries and comments feeds.
Valid XHTML and CSS.