The Sunk Cost Effect — When to Quit vs. When to Push Through
MINI #6
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We’ve all been there—pouring time, money, and energy into something that just isn’t working. Psychology calls this the sunk cost effect (sometimes called the sunk cost fallacy). It’s the tendency to stick with an investment simply because we’ve already put so much into it, even when the future payoff doesn’t justify the effort.
But here’s the twist: while the sunk cost effect often holds us back, it can also be a powerful force for perseverance, motivation, and meaning—if you know how to use it.
In this episode, Brent explores the surprising upside of sunk costs, how to recognize when they’re hurting you, and how to reframe them so they drive growth instead of regret.
What you’ll learn in this episode:
- The psychology behind the sunk cost effect and sunk cost fallacy
- How to recognize when you’re stuck in past investments
- When perseverance pays off—and when it doesn’t
- Why meaning transforms pain into growth instead of suffering
- How to use sunk costs as motivation for your goals and long-term vision
Why This Matters
The sunk cost effect isn’t just about wasted money or time—it’s about how we make decisions, how we find meaning, and how we grow through struggle. By understanding it, you’ll be able to make clearer choices, stop repeating unhelpful patterns, and harness past investments as fuel for success.
🎧 Listen to the full episode now to learn how to tell the difference between holding on too long—and holding on just long enough.
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Next Steps
🔗 Related Episodes & Resources:
- A short personal story on the danger of playing it safe – Don’t Waste Your Life: The Karo Syrup Story – mini 04
- More personal lessons on knowing when to let go – What a Feral Cat Taught Me About Letting Go of Toxic Habits – mini 01
Listen now

Brent Diggs is not an expert. As a video producer, humorist, compulsive reader, ex-marine, writer and performer, he is a generalist with a strangely broad set of interests, experiences, and skills. He is passionate about cognitive bias, social psychology, and all the irrational forces that convince us we are rational. His work has been featured in The Ominous Comma, Mind Over Memphis, and over 1400 product tutorials.
Oh yeah, he’s also the host of the Full Mental Bracket podcast.