Comments on: Sunk Cost and Getting Your Money’s Worth http://thefinancebuff.com/2009/03/sunk-cost-and-getting-your-moneys-worth.html like a friend telling you about money ... Fri, 19 Mar 2010 08:02:47 -0500 http://wordpress.org/?v=2.8 hourly 1 By: mudfud http://thefinancebuff.com/2009/03/sunk-cost-and-getting-your-moneys-worth.html/comment-page-1#comment-1763 mudfud Tue, 24 Mar 2009 18:08:53 +0000 http://thefinancebuff.com/2009/03/sunk-cost-and-getting-your-moneys-worth.html#comment-1763 Interesting! The notion of sunk loss was not self-evident to me, until I read about it. Since then I have made multiple "rational" decisions based on sunk loss, and I think it has become so deeply ingrained in my psyche, that it easily overcomes what seems "intuitive". So I think it's a matter of practice and reinforcement. Interesting! The notion of sunk loss was not self-evident to me, until I read about it. Since then I have made multiple “rational” decisions based on sunk loss, and I think it has become so deeply ingrained in my psyche, that it easily overcomes what seems “intuitive”. So I think it’s a matter of practice and reinforcement.

]]> By: Pelon http://thefinancebuff.com/2009/03/sunk-cost-and-getting-your-moneys-worth.html/comment-page-1#comment-1760 Pelon Mon, 23 Mar 2009 17:35:49 +0000 http://thefinancebuff.com/2009/03/sunk-cost-and-getting-your-moneys-worth.html#comment-1760 The rationality of a decision depends on our perspective. From a financial point of view, it may have been an irrational decision because it cost you additional time and money for something that did not have a lot of value to you. From an emotional perspective, however, I would say that the emotional value to you of "getting your money's worth" was greater than the value of the additional cost in time and money. This must have outweighed the financial considerations, or you wouldn't have gone. Either that, or you were temporarily insane. :) In short, money isn't everything. The rationality of a decision depends on our perspective. From a financial point of view, it may have been an irrational decision because it cost you additional time and money for something that did not have a lot of value to you.

From an emotional perspective, however, I would say that the emotional value to you of “getting your money’s worth” was greater than the value of the additional cost in time and money. This must have outweighed the financial considerations, or you wouldn’t have gone. Either that, or you were temporarily insane. :)

In short, money isn’t everything.

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