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Opportunity Cost
Saying 'yes' to something automatically means saying 'no' to other possibilities. This is known as Opportunity Cost. It translates into the potential benefits that we miss by choosing one option over another.
Subconsciously we are aware that we can't do everything we want at the same time. However, when we are more aware of this concept, we can make better decisions.
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Risks of Ignoring The Opportunity Cost
It's easy to overlook the cost of hypothetical opportunities. But if neglected, opportunity costs will negatively impact your life, career, and relationships.
- Working on autopilot means you put in the hours and get paid, but you end up with nothing: no important knowledge, experience, or assets. If you want to have a satisfying career, you can't afford this.
- Missed Return On Investments (ROI). Our time and resources are investments. Ask yourself if you could be spending your time on something more effective.
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Prioritize Your Options
If you want to become more aware of opportunity costs in your career, prioritize the important work.
Make a list of your top 5 priorities, keep it in a visible place, and live according to those priorities.
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Eliminate Options
Our first ideas are not always the best. At any given time, we have multiple options when it comes to spending our time.
We can't do everything. We have to make choices. When we get clear on our priorities, we will be able to eliminate many options and in the process, make better decisions.
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For every question, there is an answer. For every problem, there is a solution. For everything else, there is an explanation.
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