Jumpstart Your Dream Life

Sunk Cost Fallacy: Why We Keep Throwing Good Money After Bad

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We are incredibly picky about where we spend our time and money.

When someone wants to meet, we evaluate the usefulness of the meeting before agreeing to their request. If a store sells items that aren’t of interest to us, we leave and take our money elsewhere. We naturally veer towards activities that give us the highest returns.

Every day, we make mental calculations on what we’re doing, what we’re getting out of it, and alternative options out there. Then, we make incremental adjustments to optimize our lives.

In short, we are smart when it comes to deciding how to use our finite resources.

So why is it that once we’ve started something and realized it’s a bad opportunity – knowing full well that it’s draining our time, money, and energy – do we find it hard to stop?

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How To Tell When a Conversation is About to End

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Ending conversations is a tricky business, no matter which side you’re on.

As the listener, you find yourself daydreaming while the other person drones on. You want nothing more than to run far, far away. Unfortunately, you’re trapped within the jaws of social propriety, afraid to cut the discussion and come off as rude.

As the speaker, you’re not sure if the other person is fully engaged in what you’re saying, or whether you should cut your losses and go elsewhere. After all, you don’t want to socially embarrass yourself by talking long after the person has lost interest.

There’s a tricky balance between time and courtesy. You want to give enough time so that both of you feel good about the social interaction, but not so much that you feel like you wasted it.

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Bad Things Happen When You Ignore Warning Signs

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In January 2002, a lone man predicted a natural disaster that would impact the lives of hundreds of thousands of people.

Local expert Dieudonne Wafulah had been studying Mount Nyiragongo, a volcano in Congo, for 15 years without pay. He tracked the activity of Nyiragongo and another nearby, smaller volcano for signs of change. Although his equipment had been stolen and vandalized over the years, he persisted in his work.

Then, he saw it. Based on the patterns Wafulah witnessed, Mount Nyiragongo was about to blow. There had been a series of tremors in the earth some months before. Black smoke rose from the mountain. The lava pool inside the crater had shifted and was getting higher.

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Slow Down and Take a Deep Breath

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We normally think perfection is the final stage in a process. But it’s not. There’s another step that comes after: speed.

When you first learn a skill or create something, you struggle. You go through trial and error, trying to figure out what went wrong. The going is slow.

Then, you start seeing small glimmers of success. You receive positive feedback. You begin to feel more confident as you get closer to where you want to be.

Finally, you have it. The ideal prototype. Your technique nailed down. A system in place. Now that the structure is in order, the next step is to go faster, and faster… and faster.

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10 Things That Will Matter a Lot More in 10 Years

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Can you imagine your life in 10 years’ time?

It’s hard, isn’t it? There are so many variables, so many unknowns, it’s nearly impossible to predict what’s in store. Chance events happen, and you end up in situations that no one could foresee.

But then you look at people ahead of you for reference. They’re a decade or two older than you. You notice how their lives have panned out.

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Before You Judge, Seek to Understand

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Have you ever looked at something and thought, “That’s crazy!”?

Maybe someone paid exorbitant amounts of money to buy a jacket when you could have gotten something similar for a fraction of the price. Or a company launched a product that seemed so strange, so unlike anything you had seen before, that you wondered what they were thinking. To you, it seemed illogical, maybe even stupid.

But to them, it made perfect sense.

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8 Subtle Signs You’re Settling for Comfort Instead of Embracing the Unknown

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Does it ever feel like you’re waiting?

Waiting for something to happen. Waiting for the fog to clear, so you can see what lies ahead. Waiting for the moment the pieces come together, culminating in the perfection you spent your entire life waiting for.

If you’re still waiting, here’s news: you’re wasting your time.

Waiting is dangerous. It gives the false illusion that if you’re patient enough, time will reward you with everything you hoped for. It causes you to sit there and let things fall into place rather than doing something yourself.

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How to Release Draining Relationships and Foster the Ones That Matter

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How long does it take to predict whether or not a marriage will succeed? One year? Two years?

How about 15 minutes? In the 1970s, Dr. Gottman and Robert Levenson performed a series of studies on the difference between happy and unhappy couples. To do so, they videotaped couples attempting to resolve a conflict in their relationship for 15 minutes.

At the end, they reviewed the tapes and predicted which couples stayed together and which ended up divorced. Nine years later, they followed up with the couples. Their predictions were over 90 percent accurate.

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You Only See the Tip of the Iceberg: Lessons on the Invisibility of Success

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It’s believed that any dispute, big or small, can be settled through a game of rock-paper-scissors.

It’s simple, really. Like flipping a coin or drawing straws, rock-paper-scissors (otherwise known as RPS) is a fair decision-making method between various parties. There’s equal footing since everyone has the same, equally random chance of winning.

Or is it?

The $20 Million Auction Dilemma

In 2005, Takashi Hashiyama was in a bind. As CEO of the Japanese television manufacturer Maspro Denkoh, he decided to auction off the corporation’s collection of Impressionist paintings, including works by Cézanne, Picasso, and van Gogh.

Hashiyama contacted the two premier auction houses, Christie’s and Sotheby’s, for proposals. Although both auction houses provided extensive plans on how they would market the collection and maximize profits, Hashiyama still couldn’t pick. Finally, he asked the two houses to make a decision using rock-paper-scissors.

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Why Likability Matters More Than Competence

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Malpractice lawsuits are every doctor’s nightmare.

Once a doctor gets sued for malpractice, the implications reach far and wide. Patients distrust their doctor. Self-doubt creeps in. Some doctors even take it as a sign to leave the medical profession altogether. Even though many cases are dismissed or settled outside court, the effects of receiving that dreaded notice letter can last a lifetime.

A study using a malpractice database in Florida found that 6 percent of obstetricians accounted for over 70 percent of all malpractice-related expenses over a 5-year period. Further research showed that claims at all levels, from unpaid claims to large paid claims, played a predictor in whether a doctor was sued in the past.

Basically, some doctors get sued repeatedly, while others hardly ever get sued. There’s clearly a difference between the two. But what is it? Why do malpractice lawsuits happen in the first place?

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