Opportunity Costs

One of the fundamental truths I remember from my graduate studies in economics is the concept of opportunity costs. This means there is a cost to everything—be it in monetary terms, in time, in relationships—really in anything.

The Nobel Laureate, Milton Freedman, summarized economics with the same idea: “There is no such thing as a free lunch.”

Here is a challenge. For the next week, ask yourself the following question before taking any action: “WHAT PRICE WILL I BE PAYING?”

Situations can include:
Going to bed late
Going to bed early

Arising late
Arising early

Watching TV
Reading a book

Eating that second piece of pie
Not tempting the taste by not eating the first piece

Demanding something
Asking for something

Ignoring my mate or child when entering a room
Smiling when someone enters the room

The benefit of reflecting on the question, “WHAT PRICE WILL I BE PAYING?” is that you will have a tendency to perform that which is in your best interests.

Basically, this amounts to the fact that you have the freedom to pay the price. Just become aware of the price you are paying.