How to Kill Sunk Costs Before They Drain You Dry
- Updated: July 9, 2025
You know exactly what needs to die. That project nobody buys but you keep pouring cash into. That partnership you defend because it once looked good on paper. That version of you — the over-functioning fixer — who’d rather drown than admit the thing is dead.
Sunk costs aren’t just numbers on a spreadsheet. They’re the lies you keep funding so you don’t have to face the truth: you’re not stuck because you’re out of ideas — you’re stuck because you’re too loyal to the ghosts you built.
This post ain’t about budgets. This is a mirror. Ready or not, you’re here to bury something. Good. Let’s dig.
Quick Definition On Sunk Loss
The sunk cost trap is simple: you keep feeding a dead thing because you already paid the price. In business, it’s the product nobody wants. In life, it’s the relationship you’re too ashamed to admit expired.
This isn’t just bad math — it’s self-betrayal dressed up as commitment.
If you’ve ever bragged about how hard you work while ignoring how little it’s working — you’ve met the sunk cost trap. Call it what it is: you’re clinging to a corpse because you fear the funeral.
Too many of us choose careers, relationships, or places to live simply because we never challenge the thoughts we have around those ideas.
— Denise G. Lee (@DeniseGLee) November 20, 2024
For example, we might think, "I need more freedom in my work," and decide that becoming a business owner is the answer. Then, we see others…
Real Examples of Sunk Costs— Business & Life
This isn’t theory — I’ve done it. Maybe you’re doing it too.
The Bait Content Trap: I rebuilt my entire business once around a lie — that anyone can be “warmed up” if you just throw them a free PDF, a quick webinar, or drip out generic fluff. Meanwhile, your real work sits buried while you hand out samples to freeloaders who’ll never buy.
The Adult Toddler on Payroll: You keep a team member who whines, misses deadlines, acts like a child — but you tell yourself they “deserve loyalty” because they’ve been with you since day one. No. You’re parenting an employee instead of leading. Read this if it stings.
The Money Pit on Wheels: You refuse to sell that house or car draining your bank account with constant repairs — because the idea of letting it go feels like failure. Newsflash: keeping it is the real failure.
The Filthy Secret Lover: You know your partner is DMing your cousin half-naked photos — but you swallow it because they “get along great with your parents.” Let’s not pretend. That’s not loyalty — that’s self-betrayal in bed.
If you think this only shows up outside the office, think again. You rationalize sunk costs everywhere. Here’s how you lie to yourself.
Your calendar isn’t full — it’s cluttered. Your loyalty isn’t pure — it’s a leash. Ready to cut it?
Why Smart People Cling — The Psychology
You’re not stupid. You’re just wired to stay stuck. One study by Arkes and Blumer (1985) found that over 80% of people will throw more time or money at a failing project rather than cut their losses — simply to avoid feeling wasteful (source).
Loss Aversion: Your brain would rather keep a dead thing alive than admit it’s gone. You think losing it makes you the failure — so you keep paying the ghost.
Ego Armor: You built this. You sold it. You told the world it mattered — so walking away feels like peeling your name off the door. The pride cost hurts more than the money.
Identity Hooks: Sunk costs don’t just drain your wallet — they drain your sense of who you are without the thing you won’t quit. You’d rather be consistent than free.
Signs You’re Feeding It
How do you know you’re funding a corpse? Look for these tells:
You call it loyalty when it’s really fear. You keep a dead team, dead product, or dead partner alive because cutting it makes you feel cold — so you pretend it’s noble.
You brag about the grind but hide the math. You’re quick to talk hustle, late nights, “nobody works harder” — but if you looked at the numbers, you’d see you’re losing. So you don’t.
You build excuses faster than results. There’s always a new angle, a fresh tweak, a pivot plan — but the truth is, you’re just repackaging dead weight in prettier wrapping.
You ignore new evidence that contradicts the story. You see the reviews, the feedback, the gut-check — but you file it away and double down. Quitting feels worse than bleeding out slowly.
You’re waiting for a ‘sign.’ Here it is: the fact that you’re reading this.
How to Kill It — The Pivot
No, you don’t need to hire me — unless you want this gutted straight to the bone.
Here are 5 steps to cut the dead weight — for real:
But listen: cognitive distortions are real. Your people like you trapped because they don’t have to do the work themselves while you’re busy over-performing for everyone else.
And humans? Wired to run from discomfort. So don’t kid yourself — you’ll circle back to these more than once.
1️⃣ Name the corpse. Be brutally specific. The project, the plan, the person — what’s dead but you keep feeding?
2️⃣ Set a funeral date. Pick a kill switch moment. “If this isn’t profitable by X,” “If they ghost again by X,” — no wiggle room.
3️⃣ Run the real numbers. Pride is not ROI. Count the cost in time, energy, trust, peace — not just dollars.
4️⃣ Get feedback you can’t spin. Bring in someone who doesn’t benefit from your excuses. Let them poke holes. Listen.
5️⃣ Cut — then cut again. Expect grief. Expect regret. Expect old scripts to bait you back. That’s fine. Stay cut.
Final Cut — Your Move
Most people will read this, nod along, and keep dragging the corpse.
Quitting isn’t weakness — clinging is.
You already know what needs to go. The question is: will you do it alone, or will you get the spine to gut it properly?
If you’re done funding dead weight and ready to lead for real — we’ll do it my way: honest, sharp, no coddling.
👉 Apply here when you’re ready to bury what’s killing you.
Not before.
