Sunk costs

If things go wrong, don’t go with them. Roger Babson 1875 – 1967 Over the past few weeks, some of you may have received holiday gifts you don’t like, and you might be thinking about selling them on eBay or Craigslist. There’s an important business principle called sunk costs that you ought to consider; it’s actually useful in any number of life situations, so it’s a good lesson to learn and understand. The idea of sunk costs is fairly simple: any past costs associated with a decision are irrelevant, because you can’t change the past; you should only consider current and future …
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The high price of avoidance

If you are not willing to risk the unusual, you will have to settle for the ordinary. Jim Rohn 1930 – 2009 It’s unfortunate, but most people tend to avoid doing the things which will have the biggest impact on their lives. We’ve been taught since childhood to be careful, to avoid failure, and to stay away from danger. We’ve become conditioned to steer clear of conflict and problems and to avoid threats to our sense of self. But avoidance comes with a price. All worthy goals in life require us to try something new, to explore unknown territory, to …
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The layaway plan

It is unreasonable to think that we can earn rewards without being willing to pay their true price. Epictetus 55 – 135 A.D. Do you remember when buying bigger, more expensive items on layaway was a common thing? At one time, most department stores offered a layaway plan. While a few stores still offer these plans, for the most part, they’re a thing of the past. The widespread availability of credit cards has greatly diminished the need for layaway plans. I don’t think I mind the layaway plan fading away, but I’m troubled by the shift in mindset that’s come …
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