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The power of mental accounting...great approach and super insightful as every single piece of content you share, thanks!

https://en.wikipedia.org/wiki/Mental_accounting

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Love this mindset shift -- we could all benefit from thoughtful budgeting.

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Love this - Could you maybe expand a bit on the mechanics of your budget? Do you budget for these in a ball park way as in 5% -10% of projects will fail this year or do you get more specific and say 1 or 2 of these projects planned for this quarter/half will be a dud?

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I think about it as part of portfolio planning, so it's basically a ballpark number. Eg, "if I had to assume ~20% of projects won't go perfectly, which are the ones to make sure are *not* in that 20%? What systems should I set up to track what falls into that 20%?" If I know that a specific project is not going to work well, of course, I try to adjust that project right away to make it more likely to be successful.

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I believe your post gets at this concept already, but I feel a really valuable aspect of this approach is to avoid sunk cost fallacy. Which can kick in when failure is not an option i.e. budgeted for

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Enjoyed the failure series. Thanks for sharing yout thoughts

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