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Opportunity Cost: Master Your Options—Master Your Career - Darius Foroux
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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Ways to Say No
- The Indirect “No."Say no without feeling uncomfortable by explaining the reasons why you can't.
- The “Let me get back to you.”Buy yourself time to think...
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Curiosity: The Key To a Happy Life
The key to a long, happy and successful life is to be like a river, everflowing and curious. One has to keep learning new things and keep innovating.
Staying an eternal st...
The Enemy of Curiosity: Busyness
If one is too busy, the gates of curiosity, wonder and serendipity become forever closed. We have to take time out to do something new, exploring life, and what all it has to offer.
Our desk job followed by our home responsibilities will rob us of a good life if we are too busy to be curious.
Curiosity Keeps Life Novel
Life is about the new, and curiosity keeps life novel. Doing new things, learning new stuff and innovating in your field of interest.
Doing things that you are curious about will make your life full of joy, giving you a long, satisfying life experience.
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Key Ideas
Opportunity Cost
It is the estimated value of the best alternative or the best option that one misses out as a consequence of picking one particular option.
Example: Spending a limited resource, lik...
Opportunity Cost in Non-financial Situations
Opportunity cost in non-financial situations is more difficult to quantify. The loss or gain with choosing an option while foregoing another can be subjective and not readily comparable.
Example: While deciding on which job offer to take, we may consider job satisfaction, brand name, commute time, long-term growth, and the salary offered. While finalizing, we have to forego the other best offer. While deciding on a career, we have to consider options like prestige, impact and the work sector.
Calculating Opportunity Cost
The way to calculate the opportunity cost is to subtract the value of the option from the value of the alternative that is foregone.
Opportunity Cost = Return on the best foregone alternative - Return on the chosen option.