Opportunity Cost

This is one of the most helpful concepts I’ve learned as an adult. It’s an economic principle. It makes perfect sense, and I think you can understand it and use it almost daily.

Opportunity cost is the next best action you would do otherwise.

Here’s an example. I’m writing this blog at the moment. I’ve chosen to complete this one action as opposed to a number of others. I could be grading, conversing with the wife, mowing the lawn, or doing course coordinator work. Opportunity cost consists of the one of these that I would most benefit from instead of writing this blog. At this present moment, the opportunity cost of this particular blog is planning for changes coming to my classes next school year.

To consider a more applicable example for you, let’s say that your friend wants to video chat about something important. This could be a very easy decision! Your friendship is high on your priority list, and being there for your buddy (or whatever gals call their friends) is always a joy for you to do.

Your opportunity cost might be little: time reading a book, or time scrolling the internet. But it also may be high: getting homework done, attending youth group, or even sleep. As you can see, the timing also matters with your opportunity cost. Saying yes to talk with a friend is very easy sometimes, and other times you just need to say you will talk later.

Every decision you make has an opportunity cost. Even the very good decisions you make cost you something. One goal in your life should be to minimize your opportunity costs. Choose to spend your time with things of value, rather than scrolling (for instance).

Summer break is a great time to turn a new leaf. Make a list of your roles, prioritize that list, then choose to complete actions that move you toward improving in your roles. It’s not rocket surgery.

So, what will you do now? And almost more importantly, what could you be doing otherwise?