Tradeoffs: The Currency of Decision Making
A tradeoff is inevitable in almost every decision we take, as we usually forego some opportunity or benefit in our choices.
Many people strive for everything and believe there are no tradeoffs.
Focussing on less can get you something but focusing on everything may get you nothing.
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We seem to think that the people around us have everything in life.
Tradeoffs in others take time to become apparent. Everyone lets go of something, making a sacrifice, to be able to focus, investing time and energy in what is important to them.
It becomes impossibly hard to completely fine-tune and balance your work, family, health, relationships, friends and hobbies.
We may have to let go of one of the areas to be able to fulfill the others.
The necessity of making trade-offs alters how we feel about the decisions we face; more important, it affects the level of satisfaction we experience from the decisions we ultimately make.
SIMILAR ARTICLES & IDEAS:
Before making a decision, considers how you’ll feel about this decision in 10 minutes, 10 months, and 10 years.
It’s easy to make short-term decisions that may be beneficial 10 minutes...
In anything we do, there’s always ~20% of activities that will deliver 80% of our desired results.
It’s easy to be wrapped up in ‘busy’ work without ever getting anything done. Pareto’s Law is a useful mental model to be more effective, rather than just be efficient.
Work expands so as to fill the time available for its completion. So try placing artificial time limitations.
If we’re given three hours to complete a task that normally would take an hour, we’ll find a way to fill those three hours. However, when we’re down to the final thirty minutes, we’re suddenly feeling the pressure to get things done.
It starts with knowing what your time is worth. For instance:
We all have some idea of how much our time is worth. On extreme ends, it is easy to know if a task is worth your time. For instance, if someone offers you $0.07 per hour and another $7,000 per hour, you would have no problem to decide.
However, in the middle of the time-value spectrum, it is less clear if a particular task is worth your time. While everyone has an hourly value, few people know the exact amount.
Use the Realized Income Methods to calculate the value of your time. It is based on the income you received and will help you make better decisions on how to spend money day-by-day. You need two numbers for your calculations.
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