Opportunity cost is the value of an alternative that could have been chosen in the place of the choice you actually make.
We experience this every time we make a decision.
Whether we choose to take an action or not, there is an opportunity cost.
“If I choose to stay at home, the opportunity cost is the value of what I could do if I go out (i.e. get ice cream). But if I do go out, the cost is what I could achieve by staying home (i.e. stay in bed and watch Netflix).”
Often this decision-making process is done unconsciously. We don’t give much thought to the opportunity cost; we make the decision in a split second.
The question we must ask is whether the choice we make will give us the best outcome. We need to weigh up what outcome we want more, and take action.
Our own unique world-view, narrative, assumptions, biases and experiences define how we make decisions. I might be more inclined to go out rather than stay at home because I know from experience that I love ice cream…
The way we make decisions, our subtle preferences and inclinations, will over time determine the trajectory of our life. Of the story that we write.
Are the decisions that you make serving you? Is the opportunity cost worth giving up?
You hold the pen.
Consider the opportunity cost. Write the story that leads you to where you want to go, and become the person you want to be.