When you’re an entrepreneur, the emotional labor you put into the project is a sunk cost. So is the time you spent on not getting a deal. The coffees and dinners that you paid for are also a sunk cost.

When you’re experiencing a divorce, the twenty years of marriage is a sunk cost. So are the kids that you raised together and the house that you bought together. The money that you spent on gifts, trips and other items is a sunk cost.

When you’re going through a lawsuit, the respect that you once had from neighbors, co-workers, friends, and relatives is a sunk cost. So is the peace and quiet you worked so hard to achieve in the face of what was metastasizing under your nose.

When you’re fired from work, the mistakes you made at work and recovered from are a sunk cost. The emotional engagements that didn’t work out. The twenty years with an organization and the self-worth that you exchanged for a paycheck—these are all sunk costs.

Continuing to invest time, money, attention, emotional labor, caring, and other investments in a conflict situation, because you’ve been doing it anyway, even after the conflict proves to be intractable, unsolvable, and the other party is unwilling to work, is a fallacy.

It’s understandable. After all, time, emotional labor, attention; these are finite resources from a human perspective that, once they are spent, can seemingly no longer be recovered.

There are two options in a conflict then: lament the fact of the sunk costs and seek to ameliorate the impact of the cost in terms of future gains. Or, just write it off and let it go.

The choice is yours.



Administrator for Jesan Sorrells