I'm as subject to the " Sunk Cost fallacy " as anyone--witness the red sweater shown in my earlier blog that I have yet to give away. This is the idea that once you've made an initial investment, say in an article of clothing, you feel you have to stay committed to that investment in order to get your money's worth - even if said article of clothing looks terrible on you and you never wear it. Keeping Clothes We Don't Wear Our common response, according to both my personal experience and the experience of friends, is that we keep the piece in our closets for a year or two, and then give it away at our next Goodwill run. This is rather ridiculous, if you think about it - you don't wear it, it's taking up space in your closet, and every time you see it, you feel that little jolt of "ugh - what a mistake!" What's the remedy? In my role as a financial advisor, I would ask my clients who had invested in a losing stock if they would buy that ...
Dressing well while saving money