4. Restrict your demand as the supply is still the same: Suddenly when you start demanding more, you should understand the fact that the supply is the same or constant, which means that prices are still the same. Change or increase in demand doesn’t change the prices, only when the supply increases, prices fall. So you have to learn to hedge your demand and understand that it will cost and affect your pocket. This supply demand chain has a lot to do with our income as well. An employee with high skills (supply) can always negotiate with his employer (who demands). On the other hand, a lot of people have moderate qualities, the employer’s demand from them is also limited; hence the incomes are also likely to be stunted.

5. Don’t waste your good money after bad: The expenses that have already been incurred are known as “Sunk Costs” and can’t be recovered at any circumstances. “Sunk cost Fallacy” means an illogical belief that a further investment of money, effort and time will recover your invested money. A stock investor lost his shares on a company which is not doing well. Definitely he will not buy any more shares from the same company for a while, but he should not buy more shares from any other company in a hope of recovering the loss he already made. He may also get an offer to set at least a break-even (no profit-no loss) point, but he shouldn’t fall in such traps and invest anywhere else as it will not fetch anything. Hence one should not invest more money to recover the loss he already made.