Monday Meditation: Sunk-Cost Fallacy

Definition: “The phenomenon whereby a person is reluctant to abandon a strategy or course of action because they have invested heavily in it—even when it’s clear that letting go would be more beneficial.”

When I began to take myself seriously as a Life Coach this past fall and invested in my own coach, one of my biggest inner obstacles was letting go of performing. I had poured so much time, energy, and money into that path—my whole life, really.

What I couldn’t see for a long time was that my dream had changed. And it was costing me far more—emotionally and financially—to cling to the old one. That’s the sunk-cost fallacy at work. I felt I had something to prove, and that only success as an actor would justify all I had invested.

But this isn’t just about acting.

One of my clients is letting go of a 19-year career as a paramedic to pursue her new dream of becoming a real estate agent. Being a paramedic was her childhood dream. It gave her so much—and it also took a lot. She stayed in it probably ten years too long because of the sunk-cost fallacy.

I see this all the time as a coach, and as a friend.

And I understand why. Letting go of old dreams isn’t just about the dream itself—it’s about releasing an identity that once kept us feeling safe and known in the world. To our families, our friends, our partners.

But here’s what I know now:

The cost of staying with something (or someone) that’s run its course—no matter how much you’ve invested—is often far greater than the risk of leaping toward the dreams you hold now.

If this speaks to you, leap.

And if you’re scared to leap alone, send me a DM.

Let’s hop on a call and see what we can create together.

With Love,

Gillian

PS. This is one of my clients releasing her old dream.