Motley Fool Money - “The rest of your life begins now.”

Episode Date: October 6, 2020

Ever buy a ticket to something, not enjoy yourself, and stay anyway? Sunk costs can be a powerful force, but Professor Richard Nisbett says the smarter move is to resist them and walk out.   Learn more about your ad choices. Visit megaphone.fm/adchoices

LinkedIn is pretty amazing at helping you grow your small business. We cannot stop your new clients from emailing you at 3 a.m. We can help you sell, market, and hire in one place. We cannot help you be in three places at once. And while we can't help you organize your calendar, LinkedIn can help you land more clients so you have a calendar to organize. Grow your small business on LinkedIn. Learn more at LinkedIn.com slash small business.

With a monthly full money extra, I'm Chris Hill. You're probably not familiar with Richard Nisbet and his work, but Malcolm Gladwell is. Nisbet is a social psychology professor at the University of Michigan, and Gladwell once called Nisbet the most influential thinker of his lifetime. A few years ago, I talked with Professor Nisbet about the principle of sunk costs. It's something that investors deal with, but it's also something we encounter as consumers. The idea that if you buy a ticket to something and you're not enjoying yourself, you stick with it because, hey, you paid good money for that ticket. It's understandable to think that way, but it's probably not the right decision. I think how economists, I mean, all game, and you have to walk.

Economist motto, which is very freeing, I think, is the money back. You can pay twice. You put a lot of time, energy, or money into. And they're right about that. If you want more insights from the good professor, check out his book Mindware, Tools for Smart Thinking. I'm Chris Hill. Thanks for listening. We'll see you next time.