126. Why we make bad career decisions.
When it comes to making career decisions, I have noticed that professionals fall into the sunk cost fallacy when they continue a career track event when they are not interested in it anymore. This is especially true when they have already invested years working or studying towards a degree. This behavior happens for many reasons, none of them rational!
Sunk cost, in economics and finance, is a cost that has already been incurred and that cannot be recovered. In economic decision-making, sunk costs are treated as bygone and are not considered when deciding whether to continue an investment project.
For example, My friend bought a ticket to a concert and then started having doubts about going. She noticed the music was not really her style, and the weather was going to be horrible that weekend. This is a true story but it/s also a textbook example of sunk cost fallacy. What happened? She felt guilty for spending the money and committing to go with her friends, so she went anyway, even though she was sure it wasn't for her. I am sure you can relate, and maybe even have done something similar, yes?
Listen to this episode to learn how Sunk Cost Fallacy can cause you to get stuck in your career and learn five strategies you can use to help you make better decisions to achieve your job hunting and career goals.
[02:19] What is Sunk Cost Fallacy?
[04:36] Why we're all prone to Sunk Cost Fallacy.
[05:26] One of the biggest risks to your happiness and wellbeing is sticking to a career you aren't happy with.
[06:21] Sticking with a course of study just because you've paid for it.
[09:00] First thing to consider: Only take future costs into consideration.
[09:54] Second thing to consider: Stop making irrational decisions.
[11:04] Third thing to consider: Don't feel guilty.
[11:38] Fourth thing to consider: Reflect and review constantly.
[12:09] Fifth thing to consider: Focus on future benefits instead of past commitments.