Episode 180: Sunk Costs, Opportunity Costs, and Thinking in Terms of Expected Value

Send us Fan MailHave you ever kept going with something—even when you knew it wasn’t worth it—just because you’d already invested so much time, money, or effort? That’s the sunk cost fallacy at work.In this episode of The Grow Your Wealthy Mindset, Dr. Elizabeth Chiang explores how sunk costs, opportunity costs, and expected value shape our financial and life decisions. Drawing insights from Annie Duke’s Quit: The Power of Knowing When to Walk Away, you’ll learn how to make more rational choices—whether it’s deciding to attend a rainy concert, stick with a struggling investment, or stay in an unfulfilling job.You’ll learn:What the sunk cost fallacy is—and how it sneaks into your investing and daily choicesWhy we often “throw good money after bad” and how to stop doing itHow opportunity costs help you see what you could be gaining elsewhereHow to use expected value thinking to make smarter, more objective decisionsReal-life examples from investing, research projects, and career choicesUnderstanding these concepts can help you step back, evaluate your options more clearly, and walk away from what’s no longer serving you—financially or personally.Mentioned in this episode:Quit: The Power of Knowing When to Walk Away by Annie DukeThinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie DukePlease subscribe and leave a review on your favorite Podcasting platform. Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakesIf you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbookDr. Elisa Chiang is  a physician and money coach who helps other doctors reach their financial goals by mastering their money mindset through personalized 1:1 coaching .You can learn more about Elisa at her website or follow her on social media.Website: https://ww.GrowYourWealthyMindset.comInstagram https://www.instagram.com/GrowYourWealthyMindsetFacebook https://www.facebook.com/ElisaChianghttps://www.facebook.com/GrowYourWealthyMindsetYouTube: https://www.youtube.com/c/WealthyMindsetMDLinked In: www.linkedin.com/in/ElisaChiang Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast...