The Sunken Cost Fallacy of Clothes: Why Letting Go Is the Most Liberating Thing You Can Do

Struggling to Let Go of Clothes You Don’t Wear? Here’s Why—and How to Move On

If you’ve ever stood in front of your closet, overwhelmed by clothes you no longer wear but can’t seem to part with, you’re not alone. From unworn dresses with tags still attached to jeans that haven’t fit in years, many of us feel paralyzed by the emotional and financial investment we’ve made in our wardrobes. But keeping these items doesn’t serve us—it keeps us stuck in the past due to the sunken cost fallacy.

This article will break down why we hold onto clothing, how the sunken cost fallacy plays a role, and practical strategies for finally letting go. By the end, you’ll have a fresh perspective on your closet and feel empowered to create a wardrobe that reflects your present, not your past.

What Is the Sunken Cost Fallacy?

The sunken cost fallacy is a psychological concept that explains why we hold onto things we’ve already invested in, even when they no longer serve us. Studies, such as one published in the Journal of Consumer Research, show that people often struggle to let go of items because of the money or time already spent.

This applies to clothes in a big way. According to a survey by ClosetMaid, over 50% of people admit to keeping clothes they don’t wear due to guilt over the money spent. But here’s the hard truth:

• The sunken cost fallacy tricks us into believing we must keep an item simply because we spent money on it.
• A cluttered closet can lead to decision fatigue and stress.
• Letting go frees up space—physically and mentally—for what truly matters.

Why Does the Sunken Cost Fallacy Affect Our Wardrobe?

1. Emotional Attachment

Maybe a piece reminds you of a special time, was a gift, or symbolizes a version of yourself you once were. A study from the University of Texas, published in The Journal of Positive Psychology, found that sentimental attachment makes it difficult to part with items, reinforcing the sunken cost fallacy.

2. Aspirational Thinking

Ever kept something because you think, I’ll fit into this again someday or I just need the right occasion? While it’s great to have goals, holding onto unrealistic wardrobe pieces can make getting dressed more frustrating and deepen the sunken cost fallacy.

3. Guilt Over Money Spent

This is the core of the sunken cost fallacy—you spent $200 on that jacket, so you feel obligated to keep it. But an expensive mistake is still a mistake. The best thing you can do is learn from it and move on.

4. Fear of Waste

You don’t want to be wasteful, so you keep items “just in case.” However, according to the EPA, donating clothes to charity or recycling them significantly reduces landfill waste, as textiles make up about 5% of total landfill volume. Understanding that waste is sometimes unavoidable can help combat the sunken cost fallacy.

Related Read: Cost Per Wear: Maximizing Value from Your Wardrobe

How to Break Free from the Sunken Cost Fallacy in Your Closet

1. Shift Your Mindset

Instead of focusing on past spending, focus on what you gain by letting go: a stress-free closet filled with pieces you love. Overcoming the sunken cost fallacy means acknowledging that past investments do not dictate future happiness.

2. Ask the Right Questions

• Does this item work for my life right now?
• Does it fit my current body, style, and lifestyle?
• If I saw this in a store today, would I buy it again?

If the answer is no, it’s time to move on and break free from the sunken cost fallacy.

3. Give Your Clothes a Second Life

If guilt is holding you back, donating or selling your items can offer emotional closure. Apps like Poshmark, ThredUp, and Facebook Marketplace make selling easy, while charities ensure your clothes benefit someone in need—helping you move past the sunken cost fallacy.

4. Create a System to Maintain Your Closet

• The One-In, One-Out Rule: Every time you buy something new, donate or sell one item to avoid falling into the sunken cost fallacy again.
• Seasonal Audits: Regularly reassess your wardrobe and let go of items that no longer serve you.

5. Practice Gratitude Instead of Guilt

Instead of resenting past purchases, thank the item for what it taught you—whether that’s recognizing a style that doesn’t work for you or learning to be more intentional with future purchases. By doing so, you actively release the sunken cost fallacy from your mindset.

This mirrors the KonMari method, which emphasizes gratitude before letting go, making the process more positive and less guilt-ridden.

A Liberated Closet, A Liberated Mind

Letting go of clothes tied to the sunken cost fallacy isn’t just about decluttering—it’s about releasing emotional and mental burdens. When you free yourself from guilt, attachment, and clutter, you create space for a wardrobe that reflects who you are now, not who you were or who you think you should be.

Imagine opening your closet and seeing only pieces you love and wear regularly. A simplified wardrobe saves time, reduces stress, and helps you feel more confident in your daily choices. By releasing what no longer serves you, you’re making room for what truly does.

Ready to Take the First Step?

Start small. Pick five items right now and decide their fate—donate, sell, or recycle. You’ll be amazed at how freeing it feels to break free from the sunken cost fallacy.

What’s your biggest struggle with letting go of clothes? Share in the comments!