As we work towards mastering the simple so that we can become the expert, it’s vitally important that we change the way that we think about everything, especially about our time! This is what I’m learning to do. I like to think of myself as a creative person, but it is soooo easy to get stuck in a rut. Training your mind to think differently about a problem or topic is difficult. Especially when you’re tired.
I’m tired right now and have had a heck of a time coming up with creative wording. Anyways.
So we’re going to start working on approaching life (and decisions in particular) differently.
What I want you to consider today is the cost that you likely haven’t been conciously considering in most decisions.
That is opportunity cost (I actually learned about it in Economics 1100 and remembered it —yay, college).
What is this intangible cost you speak of?
Opportunity cost is something I talked about in my recent post “Why I Don’t Live a Life of Great Faith” and my book Graduated and Clueless. Essentially, opportunity cost is the opportunity you lose when you choose one activity over another. Or when you buy one product instead of another. It applies to literally any decision you or I make.
Here’s an example from my life.
We love examples
I work 45 minutes away from where we live. Every day, there is an opportunity cost of driving that 45 minutes one way instead of finding a job closer by. That is one and a half hours of time in the car that I could spend on something else if I moved closer to work or if I got a job closer to home.
Likewise, if I only listen to music in the car on my 45-minute drive, the opportunity cost is that I didn’t use the time to learn from an audiobook.
Or when my wife, Bailey, goes grocery shopping and buys green beans. The opportunity cost is not buying donuts (because we’re on a budget people!).
Everything has an opportunity cost and I encourage you to ask yourself today what you are giving up by doing one thing over another. I struggle with spending too much time on social media. The opportunity cost is that I don’t get to grow personally by reading a book instead.
I also like drones more than most people. When I purchase a drone, I’m losing the opportunity to invest that money for retirement. But I love flying drones so much.
Alas, life is a give and take and I must take drones.
Don’t get me wrong, rest and relaxation is a necessity when it comes to time well spent! But when you spend all that time playing on your phone or watching Studio C videos on YouTube (okay, so I did binge all their videos in one semester once), what are you losing the opportunity to do?
What is the opportunity cost of what you do?
How can you change the ways you spend your time and money to positively impact your future? Personally, I can use my time in the morning before work to read my Bible instead of watch videos while I scarf down breakfast. I want to hear from you in the comments below!
-Caleb
Bale Financial Coaching 