Case Studies and bedtime stories

The EMBABE Diaries

Sunk costs and updates to the website

on March 4, 2013

Ok, so what’s the deal with sunk costs? And first of all, what are they? According to our faithful friend Wikipedia, sunk costs are “costs that have already been incurred and cannot be recovered”. Pretty depressing so far, but wait: the great thing about sunk costs is that, because there’s nothing you can do about them, you should just ignore them in your decision-making. What does that have to do with happiness, you ask? Everything, if you are an (ever so slightly) guilt-ridden mother of two who is commuting to London for three days every two weeks. Ever since I first came across sunk costs in session two of ME (Managerial Economics, but we MBA types lurrve our acronyms), it hit me how relevant this concept is to my life. I have agreed to not see my children for six days a month for the next year and a half. It’s done, that time away from my kids its a sunk cost – I’ve incurred it and I can’t recover it. Which means I should just ignore it, let go of this stupid, useless guilt and make the best of every second I spend in London. And that, my friends, is very much what I intend to do. Long live sunk costs!

Before I forget – I’ve updated most of the EMBABE’s Survival Kit, so please have a look at the new tips and let me know how you like them!

And…[drums]…we have our first EMBABE of the Month, Elizabeth Bramson-Boudreau! Read her answers to the EMBABE questionnaire and get inspired.

As always, I welcome your comments, suggestions and contributions. Happy spring everyone!

Source: via Alexandra on Pinterest


2 responses to “Sunk costs and updates to the website

  1. Shibani says:

    Well-said, Alex! And fun updates to the survival kit too. Keep ’em coming!

  2. Crisina says:

    Good for you Alex! Beautiful photo..;)

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