WE LOSE EVERY DAY
Yes, I said it. Even if it’s difficult to admit, every day we all lose something. Let’s take you as an example… You are reading this, but by deciding to read this, you automatically invest four minutes of your time doing this rather than anything else. Still, you chose to read because you felt compelled to. Now, before you immediately close this and run off to play with your dog, give me those four minutes so that in the future, you will make decisions more consciously.
A couple of days ago, I was drinking coffee with one of my closest friends and we were talking about some tough decisions we were struggling to make. The conclusion we arrived at was that sometimes it is not hard for us to choose between options, but it is difficult to comprehend what is easier to lose.
Hold on my scientific friends, this is not just a philosophical speech. I will explain to you what I mean with a simple economic concept: opportunity cost. Economists refer to opportunity cost as the “real cost” of a decision, and it is essentially the value of the next-best forgone alternative when making a choice.
If we take our previous example, the moment you decided to read this article, you were unconsciously evaluating that the time spent reading was worth the trade-off of losing a few minutes doing another activity. At this point it is easy to see the connection between this economic principle and our daily lives: from “silly” choices, like deciding whether to read an article or play with your dog, to the monumental ones, such as deciding which career path to undertake or where to live, opportunity cost is always there. It’s about recognizing that every choice we make has a hidden cost…
Let’s take another simple example in 98% of people’s daily routine: hitting the snooze button every single morning. By doing so you are not just opting for a few more minutes of sleep, but you are also giving up the chance to have a leisurely breakfast. I do not want you to feel overwhelmed by the things I have shared with you during this reading and this is why I have used basic, almost funny, examples but I deeply hope that you will find this stuff useful especially in your hardest times. Indeed, by being aware of what we are giving up, it is often easier for us to choose consciously what we believe is the best option for us.
This does not mean that we should agonize over every single decision, but rather develop a habit of considering the potential alternatives and their respective values. Let’s go back, one last time, to the example of reading this article versus playing with your dog: if spending time with your dog brings you immense joy and strengthens your bond, then perhaps the opportunity cost of reading this article is too high. On the other hand, if gaining new insights from this article can improve your decision-making skills and add value to your life, then the time spent reading might be worth it.
In a broader context, understanding opportunity cost can help us prioritize our goals and allocate our resources more effectively. For instance, when choosing a career path, it is important to weigh the opportunity cost of one option against another: a high-paying job might come with long hours of work and stress, while a lower-paying job might offer more work-life balance and more personal satisfaction. Recognizing these trade-offs can lead to more fulfilling and balanced life choices.
At the end of the day, every decision we make is about leaving something apart. However, you will never look back at what you lost as long as you respect your values, priorities and wills. This awareness can help prioritize what truly matters to you and ensure that you are investing your time and resources in the most valuable way possible. So, the next time you are faced with a decision, take a moment to consider what you’re giving up and if that really matter to you or not.
And now that those four minutes have officially gone, I want to thank you for the time you dedicated to this and I hope that it was well spent, providing you some sort of reflection for your future decisions.
