Sunk Cost and Decluttering Your House

The dilemma of trying to decide what to do about the items you've invested time, money, effort, and space can make it difficult to declutter. Here's how to sort out the difference between the cost of items and the value of them.

When you start to declutter your home, you focus on the results you want. You envision guests sitting around the dining table instead of piles of mail and laundry covering that table. So, you grab a couple of trash bags and fill them quickly.

But then the process slows down. You find yourself debating the use of items … you haven’t used this in ages … but maybe you’ll need it someday. And you could use that thing. When you prod at your doubt, you realize you dislike the idea of decluttering things that you spent money on.

Even though you know you could donate these possessions so someone else could use them, you still hesitate. You feel like you should get more use out of these things before donating them. You know, justify buying them in the first place.

Getting Your Money’s Worth

You know you don’t use this or that thing, but you feel that you should hold onto it because of what you spent on it. Or maybe you didn’t buy it, but you asked someone else to get it for you. Or you found it for free through your local Buy Nothing group. Or maybe someone you know was getting rid of it and they offered it to you … you didn’t want to hurt their feelings, so you accepted it.

Even if you didn’t spend money acquiring it, someone did, and now you own it. And although you’re decluttering your home, choosing the things you can let go of, part of you focuses on the effort that went into getting these things.

Instead of thinking, “Oh, I can’t remember the last time I used this,” and popping the item into a box of things that you’ll donate, you get caught up in thoughts about the effort and expectations that went into getting that thing in the first place.

Sunk Cost and Decluttering

Sunk cost refers to your original investment in an item; an investment that can’t be recovered. Your investment can be more than money, it may also involve the time and effort it took you to choose the item or to raise the funds to purchase it.

And maybe your investment in the item extended to putting up shelves or buying something else to store or display the item. You gave this item space in your home which could have been home to something else … or simply have been an empty spot in your home.

And if you spent time keeping the item clean or reorganizing where you stored it, you may be subconsciously tallying those investments in time and effort to its cost. Sunk cost and decluttering can play a tug-o-war between past decisions and your desire to live a less cluttered life.

Even if you recognize that this item is not benefiting you, you may still feel an emotional attachment to it. This attachment ends up creating a barrier to decluttering. You’re caught in a tangle of knowing it’s unlikely you’ll use it but because of the time, money, space, and effort you’ve invested in it, you can’t easily let go.

Keep in mind that it doesn’t matter if an item cost you $20, $200, or $2,000, your emotional investment in the item is the real stumbling block.

When you first chose to get the item, you were focused on how you would use it in the future. Ironically, now that you’re considering getting rid of it, you’re focused on the item’s past, and what you’ve invested in owning it.

Why You Acquired the Item

When you got the item, it was something that you saw yourself using in that present moment as well as in the future. You saw the thing as bring enjoyment, ease, and the achievement of goals to your life.

At this point, you may not be consciously aware of your emotional investment in this item, but that is acting as a barrier to letting go of the item. Unfortunately, it’s unlikely that you can make an umbrella statement about the things cluttering your closets and cabinets. Don’t expect an, “I’ve been holding onto all of this stuff because of x” epiphany.

Instead, you’ll have to consider why you acquired each item individually (although some things may be connected to other items through a use or category grouping). However, don’t waste your time thinking about items you currently use or those things you have no issues with getting rid of.

If you know you don’t use something, but you feel like you should hold onto it, consider if sunk cost is creating a barrier.

Did you get the item because –

• Everyone had one and you wanted one too, even if it was a fad.

• It was an investment in your future. (Owning a treadmill will help me stay in shape.)

• You deserved a splurge.

• It was an impulse purchase that felt right in the moment.

• You were convinced that you’d use the thing all the time.

Are you holding onto an item because –

• Someone told you not to get it, but you got it anyway and now you don’t want to admit they were right.

• You sacrificed your time, effort, or money to get this thing and now you feel obligated to keep it out of respect for your sacrifice.

• You bought the item with some hesitation but told yourself you could return it if you changed your mind in a few days. But you didn’t use it … or return it. Holding onto the thing feels like penance for your procrastination.

• You chose to buy this thing instead of something else, expressing your commitment to this item.

Other Reasons You Can’t Let Go

When you declutter, you’re focusing on what you are getting rid of. Since our minds are inclined to give more attention to losses than gains, because of a psychological phenomenon known as loss aversion, you may be inclined to hold onto stuff to avoid this emphasis on what you are losing (the money, space, and effort invested in the item … not to mention the idea of giving up the item itself).

You can focus on the benefits of decluttering and what you’ll gain by dealing with less stuff, but your mind will still focus on what you’re giving up. (But it will get used to the changes.)

Commitment bias has us persist in following past decisions, even when life changes and those previous choices aren’t the best ones for us now.

Letting go of things doesn't mean you're letting go of your memories of people, activities or events that brought you joy. Instead, you're realizing that the person you are today is built on your past, the achievements and the aspirations.

Do you need all the clothing, books, knickknacks, and materials that got you to this point ... or can you see that they are no longer necessary parts of your journey forward?

Breaking Free of the Sunk Cost Fallacy

The sunk cost fallacy involves allowing your past investments in time, effort, and money to drive your decisions for the future.

(Don’t discount your investment of time and effort in making it difficult to let go of something. I’d spent so much time creating file folders and organizing my papers into them, that I ignored I didn’t need seventy-five percent of those documents. It took me ages to whittle down those files because I’d put so much energy into making them look essential because they were organized.)

One thing to consider is separating the cost and the value of an item. The money, time, space, and effort invested in an item is what that item cost you. On the other hand, the value of an item is what you get from owning it.

• Cost = what you give to an item.

• Value = what the item gives to you.

How do you want to base your decisions when decluttering your home?

Something you use all the time is more valuable to you, regardless of what you paid for it. When it comes to making a decision to keep something, you want to consider its value, what you are getting from owning this object.

Keep or Let Go?

Remember, decluttering isn’t about randomly getting rid of things just because that’s what you’re “supposed” to do when you’re decluttering. Instead, decluttering is an intentional decision to improve your life by bringing your home in line with the life you are currently living.

If your thoughts are focused on how you acquired the item in the past and how you hoped to use it, step into what the item means to you today. (Not to make your head hurt, but today is yesterday’s future. When you consider how you use the item today, you are comparing reality to the past’s imaginary tomorrow.)

1. Consider how an item is currently serving you. The emphasis is on its value, not what it cost.

2. Remember that holding onto an item doesn’t give you back the time, money, space, or effort you’ve invested in it.

3. Keeping an unused or unusable item claims more time, effort, and space from you. How will keeping an item be a negative point in your life? This goes beyond the initial investment in the item.

4. Holding onto an item that isn’t benefiting you, is a reminder of indecision that will drain you.

Professional organizer Kathy Vines has you ask the question, “Does the current value outweigh the current cost to my life?”

When decluttering, this question can help you better understand how something has earned a place in your life.

Takeaways

The harsh reality of decluttering is that you can never get back the time, space, effort, or money you’ve invested in your possessions. Holding onto things that don’t benefit your life further deepens their cost, leaving you with less space, time, and energy for the people, things, and events that matter to you now.

Acknowledging that this sunk cost into your possessions is creating an obstacle to letting go is a first step in questioning the value you are getting from these things today. You’ll not only create a less cluttered home, but you’ll free up your thoughts and actions to focus on the things that are important to you now.