You're listening to life kit from NPR.
Hey, everybody.
Marielle Seguera here.
Have you ever found yourself toiling away at work, feeling completely burnt out and thinking, you know, what if I just quit, could I do that?
Or maybe your work situation isn't dire.
Like, it's fine, but you're ready for something new.
You want to try another kind of job or start your own business.
Or maybe you want to leave a marriage or move from your cold, dreary home state to a tropical climate that also happens to be more expensive.
So often these callings feel impractical and out of reach.
And you might feel like, how could.
I leave something I've invested so much into?
This is called the sunk cost effect.
It's actually like behavioral economics, and it's actually pretty dangerous because just because you've sunk some time, energy, and money into something doesn't mean that's the best thing for you to continue doing.
That's Jill Schlesinger, a business analyst at CB's news and author of the book the great Money Reset.
She says if you're considering a reset, it helps to crunch the numbers, see what your finances look like, what might be possible for you, and when.
And so part of the idea of taking this good, hard look and accounting for what's going on is to allow yourself the freedom to think beyond where you are currently.
Schlesinger lays out a financial framework in the book, a set of steps you can use to make these decisions in this episode of Life Kit, we'll walk you through it.
Okay, let's talk about the financial reset framework.
There are five steps, right?
I know, and it's kind of kitschy.