Akash Jain

“Why would intelligent, capable British and French government officials continue to invest in what was clearly a losing proposition for so long? One reason is a very common psychological phenomenon called “sunk-cost bias.” Sunk-cost bias is the tendency to continue to invest time, money, or energy into something we know is a losing proposition simply because we have already incurred, or sunk, a cost that cannot be recouped. But of course this can easily become a vicious cycle: the more we invest, the more determined we become to see it through and see our investment pay off. The more we invest in something, the harder it is to let go. The sunk costs for developing and building the Concorde were around $1 billion. Yet the more money the British and French governments poured into it, the harder it was to walk away.3 Individuals are equally vulnerable to sunk-cost bias. It explains why we’ll continue to sit through a terrible movie because we’ve already paid the price of a ticket. It explains why we continue to pour money into a home renovation that never seems to near completion. It explains why we’ll continue to wait for a bus or a subway train that never comes instead of hailing a cab, and it explains why we invest in toxic relationships even when our efforts only make things worse. Examples”
― Greg McKeown, Essentialism: The Disciplined Pursuit of Less

“As it happens, Cynthia’s father was the management thinker Stephen R. Covey (author of The Seven Habits of Highly Effective People) who had”
― Greg McKeown, Essentialism: The Disciplined Pursuit of Less

“We can apply these five questions to our own attempts at building buffers. Think of the most important project you are trying to get done at work or at home. Then ask the following five questions: (1) What risks do you face on this project? (2) What is the worst-case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience? Your”
― Greg McKeown, Essentialism: The Disciplined Pursuit of Less

“We are unprepared in part because, for the first time, the preponderance of choice has overwhelmed our ability to manage it. We have lost our ability to filter what is important and what isn’t. Psychologists call this “decision fatigue”: the more choices we are forced to make, the more the quality of our decisions deteriorates.5 TOO MUCH SOCIAL PRESSURE It is not just the number of choices that has increased exponentially, it is also the strength and number of outside influences on our decisions that has increased. While much has been said and written about how hyperconnected we now are and how distracting this information overload can be, the larger issue is how our connectedness has increased the strength of social pressure. Today, technology has lowered the barrier for others to share their opinion about what we should be focusing on. It is not just information overload; it is opinion overload.”
― Greg McKeown, Essentialism: The Disciplined Pursuit of Less