Absolutely but sunk costs are easily forgotten when you have a job to re earn the income easily. On a fixed income early retirement - wasted sunk costs can kill you.
Sunk cost affects many aspects of our lives, including stuff we accumulate over the years. A good way to think about “things” is to ask yourself “would I buy this thing today, if I didn’t already own it.” In many situations the answer is no, yet we hang on to things unnecessarily due to sunk cost.
Such situations arise frequently in my life. I simply change my plans as new circumstances arise and write off the sunk cost as “cost of doing business”. Freedom has a price tag. I refuse to be a slave to money. For me, the best part of travel is making new friends and hanging out with family and old friends. These times are truly priceless to me. They are the times we remember for a lifetime long after the money was spent.
Honestly, I think the angst around "sunk costs" is related to control. Humans and their experiences in the world are going to generate messy, unexpected and unintended costs all the time. With hindsight bias, when things go well, 'according to plan' we block out the messy irritations- that still occur. We can also generate a bias about the future- that those irritations can be mitigated (with enough planning or money etc) I include in our "expected" expenses a buffer of 'life is laughing at your 'plans' for it' and/or the 'its always ok to change course because life is too short'- which can be freeing and empowering.
Hey Jmac, hope you are well! Absolutely 100% and well articulated. Humans are good at complicating things and also telling themselves a totally different dialogue in their heads to what is really going on. Great comment thank you.
@@2GoRoam What an adventure you have been on! It seems everytime you make plans, life (and death) add messiness. We are experiencing some of that before we truly launch- things that would have prob been less disruptive if we were planning on living more conventionally. We are learning it's a bit of a trade-off whichever path you choose- grateful to have a choice tho! Glad your health is better- time and the health to experience it- is everything!
We have gone on at least three different weekend trips where the accommodations were so bad we ended up leaving early and just lost the money for the nights we didn't stay. It came down to a choice of stay and be miserable or go home early and get a good night's sleep. Sleep always wins with me! lol
Mel! We have done exactly the same just a few months ago and it was so bad we decided to not make a video of the experience... We're like you, cut and run if it is too bad.
LOL Forcing yourself to stay in a bad place somehow reminds me of my dad at a buffet - even if it made him nauseous, he was determined to ‘get his money’s worth’ and always over ate! 😂 Its not worth the pain!
Wow great topic! Honestly hadnt seen this topic discussed elsewhere! I'm 1 1/2 months out from retirement. Can't wait to have this issue😂 Love to you both!
I had a recent sunk cost similar to your example where we had purchased tickets to a play several months before and my son in law ended up having to have outpatient surgery that day. At the end of the day, we decided to all skip the play and stay home with him and the several hundred dollar tickets went unused. But, it was the best decision.
Hey DA! Hope you are well. That is the right decision for the circumstances and probably at the time didn't feel difficult to do. It is part of life isn't it.
OMG yes. Our travel plans in the last two years have blown up for the most part. We learned a lot from that. Thinking we know what life will bring instead of living day to day. We are making fewer and fewer future travel plans.
This is such an interesting topic. I'm actually keenly aware of it and as a result suffer from what I consider commitment anxiety. We are currently in Mexico and I think we'll be heading home for a few months at the end of next month but I've yet to buy our tickets home. Because of the airlines penchant for taking more or all of your money if you need to change a flight I pretty much won't buy tickets more than a month in advance. Our current apartment stay ends in two weeks and I still don't know where we're going next. I don't like to rent AirBnB's until a week or so before I go. I may not always get the best deal but it's my crazy version of travel insurance. When I was working there was a greater need to make more detailed plans but having retired I see no need to make long term commitments. As slow travelers I think AirBnB's and plane tickets are the biggest area we can lose money should plans change and they are both the least flexible for change. Again, this was a great topic to bring up.
I'm with you on the commitment anxiety. I've lost a few bookings in the last three years. Now I have to use some airline credits from covid canceled European trips, and I'm afraid to book, especially since I've had some sunk costs in the last year due to my husband's health.
There is an impact either way you go- spend more money by booking closer to the departure (and supposedly increase certainty and the potential decrease of airb&b selection). So you could say you (maybe) avoided a potential sunk cost, in return for a (potential)daily experience of less nice airb&b.
Good discussion Subaru, Kirsten and Jmac.... I agree with you all! I suffer the same way as Subaru... I want to book Airbnb's as close to the time I want to use it as possible but as Jmac says, you do that and may end up spending more on lower quality accommodation. It is a balance we always seem to get wrong....
@@2GoRoam I guess the third option is booking shorter stays that can be refundable -even if the cost is higher than the month discount. We’ve booked a few of those- swallowed the higher cost in busier locations just to have the right airb&b for us. Some were booking a year in advance!
"Trying to correct a purchasing mistake I've already made ". Oh, let me count the ways! This vid is resonating big time. It's always an exercise in swallowing my pride and accepting that money (or opportunity or whatever) is GONE. Sometimes it's my fault, sometimes it's not, but either way, I'm slowly learning to cut ties with the paths that have dried up under my feet and get back to steering where i want it to go (pardon the mixed metaphors). Very mature video. I really found it valuable. In fact, i have to go now bec youve made realise there's one or two things i should have done years ago and im going to go do them now...(in a good way, I add!) 😊
In January was travelling around Thailand for 6 weeks and headed down to Koh Chang thinking it would be perfect from my research, but once there it just didn't click. Had pre-booked two weeks and every day regretted my decision until I decided to head to another nearby island (Koh Kood) for my second week and it felt like "home" as soon as I got there. Didn't regret losing out on the money sunk into my first choice because of feeling like I was enjoying where I was staying for my second choice! Have a good time in Australia!
Welcome to Australia, I live 140 kms from Sydney in Newcastle (but originally from Scotland 40 years ago) not sure if it's your first visit but you could spend months here and still not see everything!. Very interesting video, life is never static and best laid plans can come unstuck. Love how you put it behind you and moved forward. Enjoy this wonderful part of the world.
Yes, My last night in Bali, I was booked in a Villa and when I arrived it just didn't feel right. So I checked out and booked at a beech resort. And it was the best decision.. And worth the sunk cost of the Villa.
Oh my goodness… I used to buy tickets to an annual arts festival to see various “things” over a period of 6 weeks or so.. I’d book and pay for the tickets in one go in early October, and the festival was mid Feb to end of March. Every year, without fail, one of us would fail to show up to an event, and also every year without fail, I would catch up with my bestie for a quick drink before the event and stay with her rather than go to the event together…. Not quite the same sunk costs that you’re talking about, but the same idea… I say that life should be lived, and if something better comes along go for it!! It could be a financial loss, but more often than not, it will be an emotional/mental gain! Great video… I have never heard the expression “sunk costs” before… Love it!!
Hey Cathy, I think that is very similar to what I spoke about in this video so this is really good example. The nice thing is that although you sunk the cost, you decided to do what you wanted to do, i.e. spend time with your bestie... good decision!
I think a lot of people see their house and car and possessions as the sunk cost that’s holding then back, so the fact that you sold everything certainly makes you much more nimble, in that regard, than most. Fun video. Enjoy Australia! On our to do list for 2024 or 2025.
Great video- very thought provoking. Last year I bought tickets to see two favourite TV chefs in New York City. I thought my husband would be so happy to go! He wasn’t as keen and I decided to just shelve the plans. Why spend all that money to fly to New York, stay in a hotel etc., if he wasn’t particularly in to it? Lesson learned - he isn’t as keen to travel post-COVID.
I think, wanting to be on Everest Base Camp for my 40th birthday really changed the way I travelled in my first year. Plans had to change left right and centre just to make that happen. There were plenty of sunk costs in that pursuit but looking back, I made the right decision. However, in the pursuit to make that happen, I was tallying up all the sunken costs and told myself I would try my best not to have commitments so far out. That one commitment dictated my whole first year of travel. Safe travels guys.
Hey guys, I just wanted to thank you for giving us the idea of the self defence visa for Thailand. I had never heard of it. Would love to see a video on other tips like that for other countries if you have any. Happy and safe travels. xx
Well, I’d say to avoid sunk costs - don’t plan TOO far in advance as stuff can happen, and try to get deals that are refundable. If there’s a deal that seems too great to pass up, you have to think about the chances of if you will have to cancel. It won’t be a deal if it’s non refundable and you have to cancel 😉.
Great video Neil and welcome to Sydney Australia….my home city. We’re at the base of the Blue Mountains, if you find yourself out our way we’d love to catch up for a beer or cuppa. Oh and try to make a trip to the Blue Mountains they are absolutely stunning!
Hey Annette, sorry we didn't get to meet but we did visit the Blue Mountains on this trip (video will come out in a couple of months) we stayed in Blackheath and loved it!
I’ve considered this issue! I put a a deposit down on a cruise 12 months in the future. Luckily it’s only $250 at this point. I’m ok loosing the deposit if we need to make a change.
Hey Erin, Yes that is a good example and probably with that, by putting the deposit down it gave you a good future price so... if you did follow through on the booking it would have worked out at a greater saving than the loss if you don't use it? Nice work :-)
We never saw our boat as sunk cost. Even though we purchased it thinking we would sell our condo and live in this 47’ vessel. We were young with no children. Never happened. We had the boat for 5 years living in Florida and went out on it up and down the east coast with family and friends. Several trips to the Florida keys. At least 4 trips to the Bahamas and the beautiful Atlantis hotel and casino. Weekly trips to sand bar parties and little Florida marinas. Was it more money that we should have put out in 5 years. Yes. Was the upkeep horrendous? Yes. Did we lose money on the sale through depreciation. Yes. Did it delay our retirement by 5 years. Yes. But, all said and done, our “fabulous” plan to save money by selling the expensive condo with high condo fees and frugally living on the boat (as frugal as that can possibly be) Didn’t work out. But the lifelong memories made it all worth it. Our extended families, friends and even some employees still reminisce about that time. And it was 25 years ago.
@@Mexicobeanpole My comment was a little tongue-in-cheek. We had our boat for 5 years and could see its mooring from the back window of our house. It sold for the same price we bought it for, having "sunk" lots of money into it. It was a bucket list item, lots of memories and we're looking forward to the Japanese twins 🤔🤣. It was a Beneteau Flyer 7 on the Med 🇨🇵. ❤️😘
Great video, we bought a Land Rover Car and it had a DPF issue, we spent and spent and spent on that car had nothing but breakdowns and lost all trust in it, but not enough to recognise the issue wasn’t going to go away and didn’t want to acknowledge that it was a bad purchase. Eventually did sell it but at a loss. Also I think back to Fastjet shares, backed by Stelios it was destined to bring low cost modern travel across Africa, except major regulatory and other issues meant the shares dropped and dropped, “buy the Dip” more good money after bad. Same thing with JJB sports! Lost it all in the end. Index funds next time!
Sunk cost seems to be a creative term for “spent and wasted money” which as a slow traveler I have definately experienced. How about a “sunk cost” of $790. US? Turns out I won’t be flying back to the US from southeast Asia after all. I want to stay! It was 6 months ago that I researched and found a good price to LA in the US and a connecting flight to the city a few states away that I wanted to end up in. The price was great and there was only a 90-minute layover in one stop before the US, so I booked the flight. The flight departs in 3 days and I won’t be going. This is a true and painful “sunk cost” and before you ask… no, the tickets were not refundable. 😢
Our sunk costs? Cancelling a return flight Manchester to Ho Chi Minh just as covid broke out. (Finally going in a few weeks) You have to know when to cut your losses. Great short video.
Guilty of the movie scenario. Lol. Australia should make for a very interesting series of videos. Hope you do a cost breakdown at the end. Hope you and Sarah are happy and enjoying yourselves
Hey M Ladetto! Haha we also sink cost when we go to the Cinema and Sarah falls asleep.... waking up and saying she doesn't like the movie :-) We will indeed do a full cost breakdown at the end of Australia but that will be in a couple of months. Watch this space. We are doing really good and hope you two are too. Very best wishes Neil & Sarah
Thank you Louise! Australia as good for me, a place where walking and exercising is easy! We dropped into NZ a couple of times too but more of that in a future video!
GDAY MATES... really interesting video ... definitely makes me think for the future if I make a non refundable purchase and plans change.. what is it im really wanting and not letting the finances rule over that .. good luck in OZ
Budget your trip and add 15-25% more as we always spend more no matter what. Booking the X-Boutique instead of the X-Hotel with a non-refundable Agoda booking…kiss that $45 goodbye and don’t even think about it as it’s part of your 15-25% cost for learning and for living. I don’t think about it all except to learn the lesson quickly as to book the Hotel and not the Boutique next time.
Often take cheap flights to Bali and then fly elsewhere from there. That van in the background would be the best way to see Oz, get work up north during the dry season for something different and keep going around. I met one couple in a bus, camped on the Murray near Renmark who'd been around Oz seven times.
An aside, but do you not buy refundable airline tickets for some reason? Haven’t been watching long, so apologies if you’ve addressed this prior. And what a great explanation, thanks! I’m really enjoying your channel! Listing my house in a couple of weeks and heading out!! 🎉
Hello. I have a basic question. I am wondering what is the best site to find what types of visas/immunizations/COVID requirements are needed for a month or more stay as you travel from one country to the next. There are several business websites- but not sure that I trust those. Thanks. And I really enjoy your TH-cam channel, great content. L. Powers
Living includes walking away from sunk costs. Hello life. Oh. I actually watched the entire Gordon Ramsey ad so as to get a handle on cooking a good burger.
Slow travel seems fun but with at least half the AirBnBs I book, I can barely stand them for 3 days, never mind a month. People are far more charitable on ratings than they would be with hotels.
I have sunk cost into earnest money multiple times for real estate investments. I wasn't able recoup the money (usually $5,000 to $8,000) if I didn't proceed with the purchase of the property. For one reason or another proceeding with the purchase just wasn't attractive anymore. I had to just walk away from the money and pursue the next opportunity. I just consider it an expensive lesson for the future.
Knew you were here, but couldn't quite pick between Sydney and Melbourne. What ever you do - do NOT miss Melbourne! (Having lived in Sydney, Melbourne and Brisbane several times each...Melbourne is my favourite city in the World to live in).
Hey Cheynelle! We are doing a bit of a roadtrip and seeing as much as we can in a month or so. We'll give the Kangaroo boxing a miss Phil... Only Sarah would have a chance there.
... my 30 years on the road backpacking the world were at the cheaper end of your financial spectrum, sunk costs were very rare and small in comparison
Sadly not this ticket... they are only distributing on the day of the event on the door (small venue) and you need the credit card it was booked on. So not in the case of Love & Rockets in Portland OR.
Hi Jimmy, indeed. But you know in the previous couple of videos where we explain our strategy of using Low Cost locations to enable us to see some High Cost locations... This is one of those times :-)
I think the best illustration of the sunk cost fallacy is the university student who enrols in an expensive programme only to discover, after a few months, that this was not the right thing. "Well", (s)he says, "now that I have wasted so much money on this, I must waste my time over the next few years as well." And then, when the degree is completed, (s)he enters a profession - potentially for life - that brings no job satisfaction... Burnout at an early age guaranteed.
As a long term traveler spontaneous is the key. No more planning too hard ❤
Agreed... although we have bucked that approach in 2023 lol.
I think back on a few sunk costs from my past and see them as educational, like a class fee to learn what I really need/want. A crash course in life.
Nice one Francie, that is something you have to pay but it will pay you back in the future. Good example!
Absolutely but sunk costs are easily forgotten when you have a job to re earn the income easily. On a fixed income early retirement - wasted sunk costs can kill you.
Sunk cost affects many aspects of our lives, including stuff we accumulate over the years. A good way to think about “things” is to ask yourself “would I buy this thing today, if I didn’t already own it.” In many situations the answer is no, yet we hang on to things unnecessarily due to sunk cost.
Such situations arise frequently in my life. I simply change my plans as new circumstances arise and write off the sunk cost as “cost of doing business”. Freedom has a price tag. I refuse to be a slave to money. For me, the best part of travel is making new friends and hanging out with family and old friends. These times are truly priceless to me. They are the times we remember for a lifetime long after the money was spent.
Great examples of how we life often doesn't turn out the way we wish it would and money is only "money."
Thanks John and thank you for taking the time to comment.
Honestly, I think the angst around "sunk costs" is related to control. Humans and their experiences in the world are going to generate messy, unexpected and unintended costs all the time. With hindsight bias, when things go well, 'according to plan' we block out the messy irritations- that still occur. We can also generate a bias about the future- that those irritations can be mitigated (with enough planning or money etc) I include in our "expected" expenses a buffer of 'life is laughing at your 'plans' for it' and/or the 'its always ok to change course because life is too short'- which can be freeing and empowering.
Hey Jmac, hope you are well!
Absolutely 100% and well articulated. Humans are good at complicating things and also telling themselves a totally different dialogue in their heads to what is really going on.
Great comment thank you.
@@2GoRoam What an adventure you have been on! It seems everytime you make plans, life (and death) add messiness. We are experiencing some of that before we truly launch- things that would have prob been less disruptive if we were planning on living more conventionally. We are learning it's a bit of a trade-off whichever path you choose- grateful to have a choice tho! Glad your health is better- time and the health to experience it- is everything!
We have gone on at least three different weekend trips where the accommodations were so bad we ended up leaving early and just lost the money for the nights we didn't stay. It came down to a choice of stay and be miserable or go home early and get a good night's sleep. Sleep always wins with me! lol
Mel! We have done exactly the same just a few months ago and it was so bad we decided to not make a video of the experience... We're like you, cut and run if it is too bad.
@@2GoRoam Oh that's too bad. It might have made an interesting video though!
LOL Forcing yourself to stay in a bad place somehow reminds me of my dad at a buffet - even if it made him nauseous, he was determined to ‘get his money’s worth’ and always over ate! 😂 Its not worth the pain!
Wow great topic! Honestly hadnt seen this topic discussed elsewhere! I'm 1 1/2 months out from retirement. Can't wait to have this issue😂 Love to you both!
Hey YorkPa, pleased you found this though provoking!!! OMG so close to retirement!!! Welcome to the other side!
I had a recent sunk cost similar to your example where we had purchased tickets to a play several months before and my son in law ended up having to have outpatient surgery that day. At the end of the day, we decided to all skip the play and stay home with him and the several hundred dollar tickets went unused. But, it was the best decision.
Hey DA! Hope you are well. That is the right decision for the circumstances and probably at the time didn't feel difficult to do. It is part of life isn't it.
You can sell the tickets on internet!
OMG yes. Our travel plans in the last two years have blown up for the most part. We learned a lot from that. Thinking we know what life will bring instead of living day to day. We are making fewer and fewer future travel plans.
This is such an interesting topic. I'm actually keenly aware of it and as a result suffer from what I consider commitment anxiety. We are currently in Mexico and I think we'll be heading home for a few months at the end of next month but I've yet to buy our tickets home. Because of the airlines penchant for taking more or all of your money if you need to change a flight I pretty much won't buy tickets more than a month in advance. Our current apartment stay ends in two weeks and I still don't know where we're going next. I don't like to rent AirBnB's until a week or so before I go. I may not always get the best deal but it's my crazy version of travel insurance. When I was working there was a greater need to make more detailed plans but having retired I see no need to make long term commitments. As slow travelers I think AirBnB's and plane tickets are the biggest area we can lose money should plans change and they are both the least flexible for change. Again, this was a great topic to bring up.
I'm with you on the commitment anxiety. I've lost a few bookings in the last three years. Now I have to use some airline credits from covid canceled European trips, and I'm afraid to book, especially since I've had some sunk costs in the last year due to my husband's health.
There is an impact either way you go- spend more money by booking closer to the departure (and supposedly increase certainty and the potential decrease of airb&b selection). So you could say you (maybe) avoided a potential sunk cost, in return for a (potential)daily experience of less nice airb&b.
Good discussion Subaru, Kirsten and Jmac.... I agree with you all! I suffer the same way as Subaru... I want to book Airbnb's as close to the time I want to use it as possible but as Jmac says, you do that and may end up spending more on lower quality accommodation. It is a balance we always seem to get wrong....
@@2GoRoam I guess the third option is booking shorter stays that can be refundable -even if the cost is higher than the month discount. We’ve booked a few of those- swallowed the higher cost in busier locations just to have the right airb&b for us. Some were booking a year in advance!
"Trying to correct a purchasing mistake I've already made ". Oh, let me count the ways! This vid is resonating big time. It's always an exercise in swallowing my pride and accepting that money (or opportunity or whatever) is GONE. Sometimes it's my fault, sometimes it's not, but either way, I'm slowly learning to cut ties with the paths that have dried up under my feet and get back to steering where i want it to go (pardon the mixed metaphors). Very mature video. I really found it valuable. In fact, i have to go now bec youve made realise there's one or two things i should have done years ago and im going to go do them now...(in a good way, I add!) 😊
I’m so excited you’re in Australia! Can’t wait to follow your adventures there 🎉
Excellent video, great topic to ponder and discuss. Look forward to seeing your Australia videos!
Cheers Paul, appreciate it.
Hey you two. Good topic to discuss, not that many of us do just that! Glad to see you are in Australia 🇦🇺
In January was travelling around Thailand for 6 weeks and headed down to Koh Chang thinking it would be perfect from my research, but once there it just didn't click. Had pre-booked two weeks and every day regretted my decision until I decided to head to another nearby island (Koh Kood) for my second week and it felt like "home" as soon as I got there. Didn't regret losing out on the money sunk into my first choice because of feeling like I was enjoying where I was staying for my second choice! Have a good time in Australia!
That sums it up perfectly Kirk! We feel the same way.... ignore the sunk cost and move on. Good work :-)
Hi from a Sydneysider….who came here at the age of 2 from the UK! Hope you’re enjoying our fantastic city and beautiful country!
Anita, frankly.... Australia as stunning, we have loved our time here.
Welcome to Australia, I live 140 kms from Sydney in Newcastle (but originally from Scotland 40 years ago) not sure if it's your first visit but you could spend months here and still not see everything!. Very interesting video, life is never static and best laid plans can come unstuck. Love how you put it behind you and moved forward. Enjoy this wonderful part of the world.
We have loved Australia so much, we are already planning our return.
Yes, My last night in Bali, I was booked in a Villa and when I arrived it just didn't feel right. So I checked out and booked at a beech resort. And it was the best decision.. And worth the sunk cost of the Villa.
We've had just the same experience. We'd say you made the right decision there.
Welcome to Australia enjoy your time here.
Thanks Adventurous! :-)
Oh my goodness… I used to buy tickets to an annual arts festival to see various “things” over a period of 6 weeks or so.. I’d book and pay for the tickets in one go in early October, and the festival was mid Feb to end of March. Every year, without fail, one of us would fail to show up to an event, and also every year without fail, I would catch up with my bestie for a quick drink before the event and stay with her rather than go to the event together…. Not quite the same sunk costs that you’re talking about, but the same idea… I say that life should be lived, and if something better comes along go for it!! It could be a financial loss, but more often than not, it will be an emotional/mental gain! Great video… I have never heard the expression “sunk costs” before… Love it!!
Hey Cathy,
I think that is very similar to what I spoke about in this video so this is really good example. The nice thing is that although you sunk the cost, you decided to do what you wanted to do, i.e. spend time with your bestie... good decision!
Tell your friend about the concert and invite him to buy a ticket?
I think a lot of people see their house and car and possessions as the sunk cost that’s holding then back, so the fact that you sold everything certainly makes you much more nimble, in that regard, than most. Fun video. Enjoy Australia! On our to do list for 2024 or 2025.
I’ve not only bought a ticket to a movie that I walked out on, I also complained to the management and got my money back! :-)
Great video- very thought provoking. Last year I bought tickets to see two favourite TV chefs in New York City. I thought my husband would be so happy to go! He wasn’t as keen and I decided to just shelve the plans. Why spend all that money to fly to New York, stay in a hotel etc., if he wasn’t particularly in to it? Lesson learned - he isn’t as keen to travel post-COVID.
Interesting Joanne! We guess that is a lesson learned and a small price to pay to find out some new information :-)
I think, wanting to be on Everest Base Camp for my 40th birthday really changed the way I travelled in my first year. Plans had to change left right and centre just to make that happen. There were plenty of sunk costs in that pursuit but looking back, I made the right decision.
However, in the pursuit to make that happen, I was tallying up all the sunken costs and told myself I would try my best not to have commitments so far out. That one commitment dictated my whole first year of travel.
Safe travels guys.
I'm so excited about you being in Australia. Congratulations. And great topic this time.
Thank you Heidi! Hope you are well.
Hey guys, I just wanted to thank you for giving us the idea of the self defence visa for Thailand. I had never heard of it. Would love to see a video on other tips like that for other countries if you have any. Happy and safe travels. xx
Well, I’d say to avoid sunk costs - don’t plan TOO far in advance as stuff can happen, and try to get deals that are refundable. If there’s a deal that seems too great to pass up, you have to think about the chances of if you will have to cancel. It won’t be a deal if it’s non refundable and you have to cancel 😉.
Great video Neil and welcome to Sydney Australia….my home city. We’re at the base of the Blue Mountains, if you find yourself out our way we’d love to catch up for a beer or cuppa. Oh and try to make a trip to the Blue Mountains they are absolutely stunning!
Hey Annette, sorry we didn't get to meet but we did visit the Blue Mountains on this trip (video will come out in a couple of months) we stayed in Blackheath and loved it!
I’ve considered this issue! I put a a deposit down on a cruise 12 months in the future. Luckily it’s only $250 at this point. I’m ok loosing the deposit if we need to make a change.
Hey Erin,
Yes that is a good example and probably with that, by putting the deposit down it gave you a good future price so... if you did follow through on the booking it would have worked out at a greater saving than the loss if you don't use it? Nice work :-)
For $250, that must be a 3 day cruise...to nowhere. 🥴🥴
Great video guys, hope you have a blast in oz.
Get St Christopher down here, you three would absolutely love it!!!!
Very well stated. Made me think and that is good. Best wishes.
Thank you Phil! Appreciate the comment.
Great topic and reminder. Safe travels!
Thanks Janell! Hope you are well.
Those two pizzas being carried past you will be sunk cost by now 🍕🍕. Owning a boat is sunk cost even if it doesn't sink. 🎉+1
Best two days in a boat owners life is the day you buy the boat and sell the boat.
We never saw our boat as sunk cost. Even though we purchased it thinking we would sell our condo and live in this 47’ vessel. We were young with no children. Never happened. We had the boat for 5 years living in Florida and went out on it up and down the east coast with family and friends. Several trips to the Florida keys. At least 4 trips to the Bahamas and the beautiful Atlantis hotel and casino.
Weekly trips to sand bar parties and little Florida marinas.
Was it more money that we should have put out in 5 years. Yes. Was the upkeep horrendous? Yes. Did we lose money on the sale through depreciation. Yes. Did it delay our retirement by 5 years. Yes.
But, all said and done, our “fabulous” plan to save money by selling the expensive condo with high condo fees and frugally living on the boat (as frugal as that can possibly be)
Didn’t work out.
But the lifelong memories made it all worth it.
Our extended families, friends and even some employees still reminisce about that time.
And it was 25 years ago.
@@Mexicobeanpole My comment was a little tongue-in-cheek. We had our boat for 5 years and could see its mooring from the back window of our house. It sold for the same price we bought it for, having "sunk" lots of money into it. It was a bucket list item, lots of memories and we're looking forward to the Japanese twins 🤔🤣. It was a Beneteau Flyer 7 on the Med 🇨🇵. ❤️😘
Nice on Andrew & Stitchie! All about what gives you pleasure isn't it.
@@2GoRoam That's right.
Great video, we bought a Land Rover Car and it had a DPF issue, we spent and spent and spent on that car had nothing but breakdowns and lost all trust in it, but not enough to recognise the issue wasn’t going to go away and didn’t want to acknowledge that it was a bad purchase. Eventually did sell it but at a loss.
Also I think back to Fastjet shares, backed by Stelios it was destined to bring low cost modern travel across Africa, except major regulatory and other issues meant the shares dropped and dropped, “buy the Dip” more good money after bad. Same thing with JJB sports! Lost it all in the end. Index funds next time!
Jimmy, we all learn and you have done there! Good work :-). It is all part of life isn't it... thing is to look forward not backwards.
Welcome to Australia, hope you have a great time
Thank you Deb!!!
Sunk cost seems to be a creative term for “spent and wasted money” which as a slow traveler I have definately experienced. How about a “sunk cost” of $790. US? Turns out I won’t be flying back to the US from southeast Asia after all. I want to stay! It was 6 months ago that I researched and found a good price to LA in the US and a connecting flight to the city a few states away that I wanted to end up in. The price was great and there was only a 90-minute layover in one stop before the US, so I booked the flight. The flight departs in 3 days and I won’t be going. This is a true and painful “sunk cost” and before you ask… no, the tickets were not refundable. 😢
Our sunk costs? Cancelling a return flight Manchester to Ho Chi Minh just as covid broke out. (Finally going in a few weeks) You have to know when to cut your losses. Great short video.
Absolutely! Question.... are you with Nutty on Crypto??? :-)
@@2GoRoam have no idea what that is 😁
Ah.... That's TH-cam comments not working properly lol. It's another of our viewers. To be clear, we certainly are not into crypto!
Guilty of the movie scenario. Lol. Australia should make for a very interesting series of videos. Hope you do a cost breakdown at the end. Hope you and Sarah are happy and enjoying yourselves
Hey M Ladetto!
Haha we also sink cost when we go to the Cinema and Sarah falls asleep.... waking up and saying she doesn't like the movie :-)
We will indeed do a full cost breakdown at the end of Australia but that will be in a couple of months. Watch this space. We are doing really good and hope you two are too.
Very best wishes
Neil & Sarah
You’re looking very trim Neil, hope you’re feeling better and enjoy Australia. Hi from NZ
Thank you Louise! Australia as good for me, a place where walking and exercising is easy! We dropped into NZ a couple of times too but more of that in a future video!
30 seconds in. I think you're in Australia - Sydney. Let's see if I'm correct :)
GDAY MATES... really interesting video ... definitely makes me think for the future if I make a non refundable purchase and plans change.. what is it im really wanting and not letting the finances rule over that .. good luck in OZ
Absolutely. You got to live your life at the same time.
Hope you guys are well
Thanks Kevin, doing well.
Budget your trip and add 15-25% more as we always spend more no matter what. Booking the X-Boutique instead of the X-Hotel with a non-refundable Agoda booking…kiss that $45 goodbye and don’t even think about it as it’s part of your 15-25% cost for learning and for living. I don’t think about it all except to learn the lesson quickly as to book the Hotel and not the Boutique next time.
Often take cheap flights to Bali and then fly elsewhere from there. That van in the background would be the best way to see Oz, get work up north during the dry season for something different and keep going around. I met one couple in a bus, camped on the Murray near Renmark who'd been around Oz seven times.
Nice tip Daniel!
An aside, but do you not buy refundable airline tickets for some reason? Haven’t been watching long, so apologies if you’ve addressed this prior. And what a great explanation, thanks! I’m really enjoying your channel! Listing my house in a couple of weeks and heading out!! 🎉
I hope you enjoy Australia and I hope you visit Adelaide (my home town) as its a great place.
Hey Merridy, sadly not this time but we are planning a longer trip to Australia in the future where Adelaide will be a part of that.
If you’re in Sydney then you must do the bridge climb. It’s not cheap but it’s well worth the expense.
Yes I chose to keep my money.
And now think I may have made a mistake
Hi Stuart! We planned to but ran out of time... we will be heading back to Sydney though and we'll get to it next time. Hope you are well mate.
Hello. I have a basic question. I am wondering what is the best site to find what types of visas/immunizations/COVID requirements are needed for a month or more stay as you travel from one country to the next. There are several business websites- but not sure that I trust those. Thanks. And I really enjoy your TH-cam channel, great content. L. Powers
Living includes walking away from sunk costs. Hello life. Oh. I actually watched the entire Gordon Ramsey ad so as to get a handle on cooking a good burger.
Haha. thanks for watching the Ad :-).
Slow travel seems fun but with at least half the AirBnBs I book, I can barely stand them for 3 days, never mind a month. People are far more charitable on ratings than they would be with hotels.
Don't forget about Ayers Rock...Good luck on your adventures...BTW Are you going to New Zealand too?
We won't make it to Ayers Rock this time but we are going to be popping into NZ for a very short stint this time (but already planning a return).
I have sunk cost into earnest money multiple times for real estate investments. I wasn't able recoup the money (usually $5,000 to $8,000) if I didn't proceed with the purchase of the property. For one reason or another proceeding with the purchase just wasn't attractive anymore. I had to just walk away from the money and pursue the next opportunity. I just consider it an expensive lesson for the future.
Really difficult to do but clearly the right decision. You are making smart money decisions there.
Knew you were here, but couldn't quite pick between Sydney and Melbourne. What ever you do - do NOT miss Melbourne! (Having lived in Sydney, Melbourne and Brisbane several times each...Melbourne is my favourite city in the World to live in).
Hey Daniel, hope you are well.
You'll see that all the above made it onto our itinerary! Videos to follow :-)
Thanks for the explanation. Welcome to Australia. What are the plans for Australia??
Kangaroo boxing…they have been training.
Hey Cheynelle! We are doing a bit of a roadtrip and seeing as much as we can in a month or so. We'll give the Kangaroo boxing a miss Phil... Only Sarah would have a chance there.
... my 30 years on the road backpacking the world were at the cheaper end of your financial spectrum, sunk costs were very rare and small in comparison
Good work Alan. Best way to avoid Sunk Cost is to not spend the money in the first place. A lot of people could learn from you.
Welcome to Oz😊
Thank you Sonia!
You can re-sell a concert ticket, you know... So you can get a portion of that money back 😀
Sadly not this ticket... they are only distributing on the day of the event on the door (small venue) and you need the credit card it was booked on. So not in the case of Love & Rockets in Portland OR.
Hi Where is Sydney are you ? I would love to see you and spend time with you
Hi Pat, we were in Camperdown, alas we have now moved on. But we'll be back sometime in the future as we loved it so much.
Im so sorry I missed you guys
let me know when your back i would love to meet you
Love Perth
Sadly we didn't make it to Perth this time but we will in the future for sure!
Not sure why anyone thinks sunk cost is a fallacy. It is what it is...
I thought it looked like you were in Australia 🇦🇺
Nice one James!
Are you in🇦🇺🇦🇺🇦🇺🇦🇺 looks like inner Sydney. If so, welcome👍🏻
Spot on Kate :-). Camperdown.
So you are not going to see Rammstein in Europe?
Maria! Fear not.... we ARE going to see Rammstein in Europe, the gig I spoke about in this video was for Love & Rockets in the US next month :-)
Australia ? That's a very Expensive Country to Tour .
Hi Jimmy, indeed. But you know in the previous couple of videos where we explain our strategy of using Low Cost locations to enable us to see some High Cost locations... This is one of those times :-)
I think the best illustration of the sunk cost fallacy is the university student who enrols in an expensive programme only to discover, after a few months, that this was not the right thing. "Well", (s)he says, "now that I have wasted so much money on this, I must waste my time over the next few years as well." And then, when the degree is completed, (s)he enters a profession - potentially for life - that brings no job satisfaction... Burnout at an early age guaranteed.
That is a really good example! That sounds horrific lol!
Spend more and take the friend to the movies.
I think you have started attracting scammers in your messaging
Yep... we always try to delete them as we see them. Extremely frustrating.
Women are sunk costs
We won't get drawn on that one.... Don't give Sarah fuel to talk about my massive Record Collection :-)
Interesting topic on traveling thank you😊
Thanks Michael. Hope you are well!