2 Economic Concepts That Changed My Life

I hated Econ in school

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My Economics teacher sucked.

She used to pick on me every day and belittle me for not understanding concepts.

If only she could see me leveraging the concepts in Economics that are actually important and leaving my dream life.

These two powerful Economics concepts have changed my life completely.

1. Sunk cost fallacy

When a person is reluctant to abandon a strategy or course of action because they have invested heavily in it, even when it is clear that abandonment would be more beneficial

• I cut people out of my life who had no business being there, I’d simply stayed tolerated them because we were ‘old friends’
• I quit internships and clients when it became clear to me that we weren’t aligned. Needless to say, I’ve lost a lot of money through this. But I’ve gained happiness
• I took difficult decisions like distancing myself from some of my loved ones because they loved me but were making my mental health worse
• I’ve pulled the plug on projects even after wasting a lot of money, time, and energy on them because a dime wasted yesterday is two dimes wasted tomorrow