Sunk cost bias is the tendency for people to continue an endeavor or stick to a decision based on the cumulative prior investment (time, money, or effort) rather than on the current rational assessment of the situation. This often leads individuals to make irrational choices, keeping them tied to failing projects or relationships due to the fear of losing their previous investment.
For example, an entrepreneur might continue to pour money into a failing business because they have already invested a significant amount, despite evidence suggesting that it would be more beneficial to cut their losses and move on.
To overcome the sunk cost bias, focus on the potential future benefits and costs of your decisions rather than past investments. Remind yourself that past expenditures cannot be recovered, and make decisions based on current and future value instead.