Page 150 - Morgan Housel - The Psychology of Money_ Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)
P. 150
Sunk costs—anchoring decisions to past efforts that can’t be refunded—are
a devil in a world where people change over time. They make our future
COBACOBA
selves prisoners to our past, different, selves. It’s the equivalent of a
stranger making major life decisions for you.
Embracing the idea that financial goals made when you were a different
person should be abandoned without mercy versus put on life support and
dragged on can be a good strategy to minimize future regret.
The quicker it’s done, the sooner you can get back to compounding.
Next, let’s talk about compounding’s price of admission.
