Opportunity Costs: A Simple Tweak that Will Improve Your Decision Making by 95%

A life that is plagued with poor decisions is like a watch with dead batteries – the times are more awry than it needs to be.

If you are serious about improving the quality of your life, you need to be more conscious of one simple thing that everyone overlooks 90% of the time.

You wanna know what it is?

It’s Opportunity Costs.

So, what are Opportunity Costs? This is best explained with an example.

Suppose you have the option of choosing between vegetables and chocolate. If you opt for the chocolate, your opportunity cost is not just the vegetables, but the flat tummy and healthier body you’ve always wanted.

The same thing happens when you have to choose between scrolling mindlessly on Instagram and taking action on the online program you just purchased. As before, if you choose Instagram, your opportunity cost is not just the time you would have spent on the online course, but also the rewards the specialized knowledge could have brought you in the future.

As you can see, in spite of our best intentions, as humans, we find a way to not act in our best interests. As a result, the quality of our lives continues to plummet.

But it is not all tales of doom.

You can improve the quality of your life, and one way to do that is to be more conscious of opportunity costs when you make decisions.

So, how then can you be more conscious about opportunity costs to improve your decision making?

Be Ruthless in Your Planning to See Opportunity Costs Better

opportunity cost,can opportunity cost be negative,can opportunity cost be zero,can opportunity cost be positive,can opportunity cost be money,can opportunity cost ever be zero,can opportunity cost decrease,can opportunity cost be equal to zero,can opportunity cost be avoided,can opportunity cost be transferred,can opportunity cost be less than one,can opportunity cost be objectively measured,can opportunity cost,can opportunity cost vary,how can opportunity cost be measured,how can opportunity cost affect behavior,why can't opportunity cost exist without scarcity,how can opportunity cost be defined,can you calculate opportunity cost,can we measure opportunity cost,opportunity cost can best be defined as,when opportunity cost is zero,when opportunity cost is positive economic profit,when opportunity cost is high,when opportunity cost is constant,when does opportunity cost increase,when is opportunity cost negative,when can opportunity cost be zero,when the opportunity cost of holding money increases,when do opportunity cost,when describing the opportunity cost of two producers,when is the opportunity cost of holding money higher,when computing the opportunity cost of attending a concert,when does constant opportunity cost occur,when does increasing opportunity cost occur,when economists measure opportunity cost,when is an opportunity cost,opportunity cost when buying a car,when do you calculate opportunity cost,what opportunity cost means,what opportunity cost in economics,what's opportunity cost,what's opportunity cost example,what's opportunity cost of capital,what opportunity cost of a decision,what opportunity cost of holding money,what opportunity cost is good,how opportunity cost is calculated,what does opportunity cost mean,what is opportunity cost give example,what is opportunity cost quizlet,what is opportunity cost in hindi,what is opportunity cost in economics with example,what is opportunity cost in business,what is opportunity cost in accounting,what is opportunity cost principle,what is opportunity cost in finance,what is opportunity cost in microeconomics,what is opportunity cost pdf,will opportunity cost be negative,when will opportunity cost be zero,when will opportunity cost change,what circumstances will opportunity cost be zero,under what circumstances will opportunity cost be zero,opportunity cost will decrease,opportunity cost will be,opportunity cost will rise,that's opportunity cost,who defined opportunity cost,where is increasing opportunity cost,where is an opportunity cost,where to find the opportunity cost,which opportunity cost does this cartoon address,what's opportunity cost,what opportunity cost in economics,what's opportunity cost example,what opportunity cost means,what's opportunity cost of capital,what opportunity cost of a decision,what opportunity cost of holding money,what opportunity cost is good,which statement about opportunity cost is true,which is the opportunity cost of an investment,why opportunity cost is important,why opportunity cost is an important concept for producers,why opportunity cost is the best forgone alternative,why opportunity cost increases,why opportunity cost is important in economics,why opportunity cost is an important concept for economists,why opportunity cost arises,why opportunity cost is studied in economics,why opportunity cost is relevant to the allocation of resources,why opportunity cost increase with ppf,why opportunity cost,why opportunity cost is a ratio,why opportunity cost of capital,why does opportunity cost vary,why does opportunity cost increase,why is opportunity cost constant,why does opportunity cost mean,why is opportunity cost good,why does constant opportunity cost occur,why must the opportunity cost always be desirable,are opportunity cost and sacrifice the same thing,is opportunity cost always financial,is opportunity cost,is opportunity cost a ratio,is opportunity cost negative,is opportunity cost constant,is opportunity cost a cash flow,is opportunity cost important,is opportunity cost money,is opportunity cost a decision,is opportunity cost be zero,is opportunity cost of capital,is opportunity cost of an action,what are opportunity cost and scarcity,what are opportunity cost and examples,how opportunity cost is calculated,how opportunity cost affects students,how opportunity cost is different from actual cost,how opportunity cost related to the definition of economics,how opportunity cost help in decision making,how opportunity cost affects decision making,how opportunity cost related to scarcity,how opportunity cost,what opportunity cost in economics,what's opportunity cost example,what opportunity cost means,what's opportunity cost of capital,what opportunity cost of a decision,what opportunity cost of holding money,what opportunity cost is good,how does opportunity cost vary,how does opportunity cost relate to economics,how does opportunity cost relate to scarcity,how does opportunity cost influence decision-making,how does opportunity cost increase,opportunity cost without spending money,opportunity cost without spending any money,an opportunity cost incurred without an expenditure of money is,opportunity cost with example,opportunity cost with diagram,opportunity cost with time,opportunity cost with ppf,opportunity cost with graph,opportunity cost with hours,opportunity cost with table,opportunity cost with three choices,opportunity cost with numerical example,opportunity cost with money,opportunity cost with investment,opportunity cost with definition,opportunity cost with meaning,opportunity cost in economics,opportunity cost of capital,opportunity cost in a sentence,opportunity cost of going to college,opportunity cost in accounting,opportunity cost of holding money,opportunity cost in hindi,opportunity cost to go to college,opportunity cost to the government,opportunity cost to a firm,opportunity cost to society,opportunity cost to attend college,opportunity cost to individual firm and government,opportunity cost to,opportunity cost to meaning,opportunity cost to capital,opportunity cost to investment,opportunity cost to scarcity,opportunity cost to the decision,opportunity cost in economics,opportunity cost in a sentence,opportunity cost in accounting,opportunity cost of holding money,opportunity cost in hindi,opportunity cost of capital formula,opportunity cost in economics definition,opportunity cost of production,opportunity cost for a firm,opportunity cost for government,opportunity cost for consumers,opportunity cost for workers,opportunity cost for kids,opportunity cost for dummies,opportunity cost for college,opportunity cost for producers,opportunity cost for a business,opportunity cost for individuals,opportunity cost for eating pizza,opportunity cost for buying a car,opportunity cost for economic growth,opportunity cost for farmers,opportunity cost for holding money,opportunity cost for starting a business,opportunity cost for a nation,opportunity cost for capital,opportunity cost for going to university,opportunity cost for mcdonald's,opportunity cost can be defined as,opportunity cost can best be defined as,opportunity cost can be zero,opportunity cost can also be defined as the cost of a decision,opportunity cost can also be thought of as,opportunity cost can be negative,opportunity cost can be defined as quizlet,opportunity cost can be called as,opportunity cost can best be described as,opportunity cost can be measured as the,opportunity cost can best be defined as quizlet,opportunity cost can also be called,opportunity cost can only be measured in $,opportunity cost can be described as,opportunity cost can not be measured,the concept opportunity cost can be best described as,the notion of opportunity cost can be represented graphically by the,can opportunity cost be positive,the concept of opportunity cost can be applied to the analysis of,can opportunity cost be money,opportunity cost is defined as,opportunity cost is best defined as,opportunity cost is the,opportunity cost is quizlet,opportunity cost is calculated by which of the following,opportunity cost is the value of,opportunity cost is a measure of,opportunity cost is calculated by which of the following apex,opportunity cost is a key consideration in determining,opportunity cost is also called,opportunity cost is best described as the,opportunity cost is what must be,opportunity cost is best defined as quizlet,opportunity cost is a term which describes,opportunity cost is a measure of quizlet,opportunity cost is best defined as the value of,opportunity cost is illustrated on the ppf diagram by,opportunity cost is most similar to,opportunity cost is usually,opportunity cost is based on the principle of,opportunity cost like,opportunity cost and scarcity,opportunity cost and ppf,opportunity cost and trade off,opportunity cost and comparative advantage,opportunity cost and sunk cost,opportunity cost and marginal cost,opportunity cost and ppc,opportunity cost and actual cost,opportunity cost and benefit,opportunity cost and trade,opportunity cost and example,opportunity cost and money cost,opportunity cost and comparative advantage worksheet,opportunity cost and scarcity relationship,opportunity cost and implicit cost,opportunity cost and outlay cost,opportunity cost and choice,opportunity cost and consumers,opportunity cost and accounting cost,opportunity cost and marginal analysis,opportunity cost or alternative cost,opportunity cost or scarcity,opportunity cost of capital,opportunity cost of going to college,opportunity cost of holding money,opportunity cost of capital formula,opportunity cost and trade off,opportunity cost and comparative advantage,opportunity cost of attending college,opportunity cost of production,opportunity cost of college,opportunity cost and production possibilities,opportunity cost of time,opportunity cost of economic growth,opportunity cost of money,opportunity cost and ppf,opportunity cost of buying a car,opportunity cost of investment,opportunity cost of unemployed resources,opportunity cost of capital definition,opportunity cost vs trade off,opportunity cost vs accounting cost,opportunity cost versus out-of-pocket cost,opportunity cost vs marginal cost,opportunity cost vs sunk cost,opportunity cost vs implicit cost,opportunity cost vs monetary cost,opportunity cost vs outlay cost,opportunity cost vs economic cost,opportunity cost vs trade off example,opportunity cost vs cost,opportunity cost vs actual cost,opportunity cost vs opportunity loss,opportunity cost vs money cost,opportunity cost vs marginal benefit,opportunity cost vs discount rate,opportunity cost vs relative price,opportunity cost vs true cost,opportunity cost and imputed cost,opportunity cost vs incremental cost,opportunity cost vs trade off,opportunity cost vs accounting cost,opportunity cost vs marginal cost,opportunity cost vs sunk cost,opportunity cost vs implicit cost,opportunity cost vs monetary cost,opportunity cost vs outlay cost,opportunity cost vs economic cost,opportunity cost vs trade off example,opportunity cost vs cost,opportunity cost vs actual cost,opportunity cost vs opportunity loss,opportunity cost vs money cost,opportunity cost vs marginal benefit,opportunity cost vs discount rate,opportunity cost vs relative price,opportunity cost vs true cost,opportunity cost and imputed cost,opportunity cost vs incremental cost,opportunity cost vs financial cost,opportunity cost xls,opportunity cost of x in terms of y,opportunity cost of x,opportunity cost of good x,opportunity cost of good x in terms of y,opportunity cost of the x-axis,xkcd opportunity cost,opportunity cost youtube,opportunity cost yaitu,opportunity cost yahoo answers,opportunity cost yourarticlelibrary,youtube opportunity cost,opportunity cost year 6,opportunity cost new york times,opportunity cost in your own words,opportunity cost 4 year college,opportunity cost example youtube,opportunity cost to you of attending college,opportunity cost to you of an action is,opportunity cost of your decision,opportunity cost of your college education,opportunity cost example yahoo,opportunity cost of your degree,opportunity cost of your purchase,opportunity cost of starting your own business,opportunity cost of getting your degree,opportunity cost is what you sacrifice to get something,opportunity cost zero,opportunity zone cost basis,opportunity zone cost,opportunity cost equal zero,opportunity cost is zero if,can opportunity cost zero,opportunity cost not zero,zero opportunity cost graph,zero opportunity cost ppc,zimbabwe's opportunity cost of one hairbrush is,zero opportunity cost example,zero opportunity cost definition,zero opportunity cost ppf,zero opportunity cost curve,can opportunity cost be zero in economics,zero opportunity cost per unit graph,zero opportunity cost ppc graph,zero opportunity cost production possibilities curve,za opportunity cost,opportunity cost of production is zero,opportunity cost worksheet,opportunity cost wiki,opportunity cost with example,opportunity cost word problems,opportunity cost with diagram,opportunity cost with time,opportunity cost with ppf,opportunity cost what is it,opportunity cost with graph,opportunity cost wall street journal,opportunity cost when starting a business,opportunity cost worksheet economics,opportunity cost with hours,opportunity cost with table,opportunity cost was given by,opportunity cost worksheet answers chapter 6,opportunity cost worked example,opportunity cost webquest,opportunity cost when buying a car,opportunity cost with three choices,opportunity cost vs trade off,opportunity cost video,opportunity cost vs accounting cost,opportunity cost vs marginal cost,opportunity cost vs sunk cost,opportunity cost vs implicit cost,opportunity cost vs monetary cost,opportunity cost vs outlay cost,opportunity cost vs economic cost,opportunity cost vs trade off example,opportunity cost vs cost,opportunity cost vs actual cost,opportunity cost value,opportunity cost vocabulary,opportunity cost vs opportunity loss,opportunity cost vs money cost,opportunity cost vs marginal benefit,opportunity cost vs discount rate,opportunity cost versus out-of-pocket cost,opportunity cost vs relative price,opportunity cost ppf,opportunity cost ppf graph,opportunity cost practice problems,opportunity cost per unit formula,opportunity cost principle,opportunity cost ppc,opportunity cost pdf,opportunity cost ppt,opportunity cost picture,opportunity cost pmp,opportunity cost practice questions,opportunity cost per unit,opportunity cost project,opportunity cost problem,opportunity cost powerpoint,opportunity cost problem examples,opportunity cost principle example,opportunity cost poster,opportunity cost principle in hindi,opportunity cost pricing,opportunity cost simple definition,opportunity cost synonym,opportunity cost scarcity,opportunity cost sentence,opportunity cost simple example,opportunity cost short note,opportunity cost slope,opportunity cost slideshare,opportunity cost section 2,opportunity cost simulation,opportunity cost song,opportunity cost symbol,opportunity cost short definition,opportunity cost savings,opportunity cost sunk cost,opportunity cost svenska,opportunity cost simple,opportunity cost simple meaning,opportunity cost summary,opportunity cost supply curve,opportunity cost ratio,opportunity cost real life examples,opportunity cost refers to,opportunity cost rate,opportunity cost refers to quizlet,opportunity cost risk,opportunity cost represents,opportunity cost real estate,opportunity cost real world example,opportunity cost reddit,opportunity cost rate of return,opportunity cost related words,opportunity cost relationships,opportunity cost research papers,opportunity cost rumus,opportunity cost reading,opportunity cost rule,opportunity cost revenue,opportunity cost review,opportunity cost reflected on a production possibilities curve is,opportunity cost tutor2u,opportunity cost table,opportunity cost theory,opportunity cost theory of international trade,opportunity cost tagalog,opportunity cost trade,opportunity cost trade off,opportunity cost time,opportunity cost transfer pricing,opportunity cost that aren't monetary include,opportunity cost types,opportunity cost table example,opportunity cost theory given by,opportunity cost theory in hindi,opportunity cost test questions,opportunity cost test,opportunity cost tamil meaning,opportunity cost trade examples,opportunity cost three choices,opportunity cost theory ppt,opportunity cost used in a sentence,opportunity cost upsc,opportunity cost usually,opportunity cost using ppf,opportunity cost uses,opportunity cost usually quizlet,opportunity cost university,opportunity cost using ppc,opportunity cost utility,opportunity cost unit,opportunity cost using tables,opportunity cost urban dictionary,opportunity cost untuk suatu unit tambahan,opportunity cost upsc 2018,opportunity cost unit labor requirement,opportunity cost questions,opportunity cost quiz,opportunity cost quotes,opportunity cost questions and answers,opportunity cost questions multiple choice,opportunity cost quizlet,opportunity cost quiz quizlet,opportunity cost quora,opportunity cost questions and answers pdf,opportunity cost quiz questions,opportunity cost questions quizlet,opportunity cost questions pdf,opportunity cost question upsc,opportunity cost question example,opportunity cost quizlet economics,opportunity cost quizlet microeconomics,opportunity cost questions and solutions,opportunity cost khan academy,opportunity cost kahulugan,opportunity cost kid definition,opportunity cost kahoot,opportunity cost kya hota hai,opportunity cost kahulugan tagalog,opportunity cost kahulugan sa ekonomiks,opportunity cost kahulugan at halimbawa,opportunity cost kya hai,opportunity cost kahulugan sa tagalog,opportunity cost key terms,opportunity cost kahulugan brainly,opportunity cost kahulugan wikipedia,opportunity cost keywords,opportunity cost kelas 10,opportunity cost key,opportunity cost kitchen,opportunity cost ki definition,opportunity cost kasus,opportunity cost answer key,opportunity cost of capital,opportunity cost of going to university,opportunity cost on ppf,opportunity cost of clean air,opportunity cost of capital formula,opportunity cost of hs2,opportunity cost of investing in capital goods,opportunity cost of money,opportunity cost of breathing,opportunity cost of being an entrepreneur,opportunity cost of production,opportunity cost of insurance,opportunity cost of economic growth,opportunity cost of buying a car,opportunity cost of holding cash,opportunity cost of attending a lecture,opportunity cost of brexit,opportunity cost of capital and npv,opportunity cost of opening a new branch,opportunity cost of starting a business,opportunity cost news,opportunity cost news articles,opportunity cost nhs,opportunity cost news articles 2019,opportunity cost nedir,opportunity cost neglect,opportunity cost notes,opportunity cost non examples,opportunity cost npv,opportunity cost numericals,opportunity cost numerical example,opportunity cost negative,opportunity cost new york times,opportunity cost ncert,opportunity cost nederlands,opportunity cost notes pdf,opportunity cost nghia la gi,opportunity cost net present value,opportunity cost norsk,opportunity cost next best alternative forgone,opportunity cost meaning,opportunity cost meaning in business,opportunity cost meaning in economics,opportunity cost model,opportunity cost multiple choice questions,opportunity cost means that something needs to be,opportunity cost meaning in hindi,opportunity cost macroeconomics,opportunity cost may be defined as the,opportunity cost meaning in urdu,opportunity cost meaning in tamil,opportunity cost method,opportunity cost meme,opportunity cost meaning in marathi,opportunity cost must be considered in decisions involving,opportunity cost microeconomics definition,opportunity cost managerial accounting,opportunity cost meaning and example,opportunity cost meaning in telugu,opportunity cost macroeconomics definition,opportunity cost lyrics,opportunity cost lesson plan,opportunity cost là gì,opportunity cost loss,opportunity cost lost,opportunity cost law,opportunity cost low or high,opportunity cost lesson plan high school,opportunity cost limitations,opportunity cost lessons,opportunity cost line,opportunity cost layman's terms,opportunity cost loss over gain,opportunity cost lecture,opportunity cost legal definition,opportunity cost life examples,opportunity cost lecture notes,opportunity cost lyrics g,opportunity cost labor hours,opportunity cost lies in the eyes of the beholder,opportunity cost journal,opportunity cost jokes,opportunity cost jacob clifford,opportunity cost journal articles,opportunity cost jelentése,opportunity cost junior cert,opportunity cost journal entry,opportunity cost jlcollinsnh,determining opportunity cost juanita,opportunity cost of joining the military,opportunity cost of job search,opportunity cost academic journal,opportunity cost of job,opportunity cost in japan,opportunity cost lyrics jerome,opportunity cost of jeans,opportunity cost wall street journal,opportunity cost of changing jobs,opportunity cost between two jobs,opportunity cost of quitting job,opportunity cost health economics,opportunity cost hindi,opportunity cost high or low,opportunity cost healthcare,opportunity cost hindi meaning,opportunity cost how to find,opportunity cost high,opportunity cost halimbawa,opportunity cost history,opportunity cost hugot,opportunity cost hesaplama,opportunity cost help,opportunity cost housing development,opportunity cost haberler,opportunity cost homework assignment,opportunity cost harvard business review,opportunity cost highest valued option forgone,opportunity cost hospital,opportunity cost haiku,opportunity cost graph,opportunity cost g eazy,opportunity cost gcse business,opportunity cost government example,opportunity cost game,opportunity cost grid,opportunity cost given by,opportunity cost graph maker,opportunity cost google scholar,opportunity cost going to college,opportunity cost good or bad,opportunity cost graph explained,opportunity cost g eazy meaning,opportunity cost going to a movie,opportunity cost guns and butter,opportunity cost government spending,opportunity cost graph questions,opportunity cost guided reading and review,opportunity cost government definition,opportunity cost generator,opportunity cost in economics,opportunity cost in business,opportunity cost in a sentence,opportunity cost in accounting,opportunity cost in french,opportunity cost in healthcare,opportunity cost in economics definition,opportunity cost is defined as,opportunity cost is best defined as,opportunity cost is quizlet,opportunity cost in hindi,opportunity cost is calculated by which of the following,opportunity cost in malay,opportunity cost in managerial economics,opportunity cost in microeconomics,opportunity cost in finance,opportunity cost is also known as,opportunity cost increase,opportunity cost importance,opportunity cost is a measure of,opportunity cost example,opportunity cost economics,opportunity cost equation,opportunity cost explained,opportunity cost economics definition,opportunity cost exam questions,opportunity cost economics a level,opportunity cost easy definition,opportunity cost example business,opportunity cost economics help,opportunity cost example problems,opportunity cost example with graph,opportunity cost examples tutor2u,opportunity cost economics tutor2u,opportunity cost exists because,opportunity cost econ,opportunity cost econ definition,opportunity cost exercise,opportunity cost economics quizlet,opportunity cost essay,opportunity cost formula,opportunity cost for a firm,opportunity cost for government,opportunity cost for consumers,opportunity cost formula ppf,opportunity cost from ppf,opportunity cost finance,opportunity cost for workers,opportunity cost formula economics,opportunity cost for kids,opportunity cost for dummies,opportunity cost for college,opportunity cost forgone,opportunity cost facts,opportunity cost finance definition,opportunity cost from a table,opportunity cost formula example,opportunity cost from graph,opportunity cost fallacy,opportunity cost forces consumers and producers to make,opportunity cost calculation,opportunity cost curve,opportunity cost concept,opportunity cost comparative advantage,opportunity cost can be defined as,opportunity cost calculation exercises,opportunity cost chart,opportunity cost calculator econ,opportunity cost cartoon,opportunity cost college,opportunity cost class 11,opportunity cost clipart,opportunity cost can best be defined as the,opportunity cost current events,opportunity cost characteristics,opportunity cost contoh,opportunity cost capital budgeting,opportunity cost chart example,opportunity cost curve example,opportunity cost current events 2019,opportunity cost definition,opportunity cost definition business,opportunity cost definition economics,opportunity cost diagram,opportunity cost def,opportunity cost definition business studies,opportunity cost definition simple,opportunity cost definition foregone,opportunity cost definition and real world examples,opportunity cost definition tutor2u,opportunity cost decision making,opportunity cost defined,opportunity cost definition and example,opportunity cost decision,opportunity cost drawing,opportunity cost decrease,opportunity cost define economics,opportunity cost definition easy,opportunity cost definition in accounting,opportunity cost discount rate,opportunity cost and scarcity,opportunity cost a level economics,opportunity cost accounting,opportunity cost articles,opportunity cost and ppf,opportunity cost activity,opportunity cost a level,opportunity cost and trade off,opportunity cost arises because,opportunity cost analysis,opportunity cost articles 2019,opportunity cost adalah,opportunity cost as an economic tool,opportunity cost and comparative advantage,opportunity cost and sunk cost,opportunity cost approach,opportunity cost antonym,opportunity cost and marginal cost,opportunity cost assignment,opportunity cost and ppc,opportunity cost business,opportunity cost business definition,opportunity cost bbc bitesize,opportunity cost business example,opportunity cost bitesize,opportunity cost business a level,opportunity cost buying a car,opportunity cost brexit,opportunity cost benefit,opportunity cost between two goods,opportunity cost between three choices,opportunity cost brainly,opportunity cost between two countries,opportunity cost book,opportunity cost benefit analysis,opportunity cost best relates to the concept of,opportunity cost budget line,opportunity cost bias,opportunity cost best defined as,opportunity cost business studies,opportunity cost definition,opportunity cost meaning,opportunity cost formula,opportunity cost example,opportunity cost of capital,opportunity cost economics,opportunity cost definition business,opportunity cost definition economics,opportunity cost tutor2u,opportunity cost calculation,opportunity cost diagram,opportunity cost graph,opportunity cost ppf,opportunity cost business,opportunity cost equation,opportunity cost of going to university,opportunity cost questions,opportunity cost meaning in business,opportunity cost explained,opportunity cost in a sentence

Stephen Spiller, associate professor at the University of Califonia, Los Angeles, conducted a study to examine how sensitive people were to opportunity costs in their decision making. In his study of 242 people, Spiller discovered that respondents who planned how they spent their income were more likely to consider opportunity costs than their counterparts who did not plan.

What’s the point here?

If you want to improve your consciousness to opportunity costs, you need to plan ahead of time when you’re not under any pressure to choose! While this obviously applies to money, you can see the same effect in various aspects of life. For instance, when you plan your day ahead of time, you’re less likely to ‘waste’ time on activities and choices that can derail you from your desirable destination

Impose Constraints on Yourself Simplify Opportunity Costs

In the same study, Spiller discovered something interesting.

Among the respondents that did not plan, those whose salaries came in every month thought more about opportunity costs than those who got their wages every week.

This means that, even though the monthly salary earners did not want to think about it, the conditions of their pay still constrained them to think about opportunity costs. Naturally, the results would be quadrupled if planning was involved, but this is much better than nothing!

So, how can you set up constraints? A good example is leveraging on technology.

I’ll explain with a personal example.

Some months ago, I noticed that I spent a lot of time mindlessly surfing the internet. To help constrain my tendencies, I installed an app on my phone that blocked me from accessing my favorite sites for a large chunk of the day.

The result? My productivity skyrocketed because I constrained myself from having to choose between mindless surfing and projects I had on my desk!

Change the Frames and Opportunity Costs Become Clearer

Many times, we fail to consider opportunity costs because of the way the options are framed (i.e., presented to us).

Some researchers conducted a study where they offered a group of students the opportunity to by a DVD.

For some of the participants, the researchers presented the opportunity as a choice between buying the DVD and not buying it. Other participants received the opportunity as a choice between buying the DVD and ‘keeping the money for other purchases’.

Needless to say, the first group made 20% more DVD purchases than the second group.

This goes to say that the way the options are presented to you will determine how easily you will consider opportunity costs.

If you want to improve decision making, you need to learn how to deliberately change the frame.

So, when everyone is seeing the sale as “just 40% off”, you are changing the frame and realizing that you’re still paying 60%!

In the same vein, when everyone else is seeing the extra work as an opportunity to make extra money and advance your career, you’re changing the frame to see it as a means by which you lose valuable time with your significant other.

In Conclusion…

Just as it’s never too late to change dead batteries out of a clock, you can dramatically improve the quality of your life by improving the quality of your decisions.

All you need to do is to be more sensitive to opportunity costs by planning ruthlessly, imposing constraints on yourself, and actively changing frames presented to you.

Opportunity Costs: A Simple Tweak that Will Improve Your Decision Making by 95%

Be Ruthless in Your Planning to See Opportunity Costs Better

Impose Constraints on Yourself Simplify Opportunity Costs

Change the Frames and Opportunity Costs Become Clearer

In Conclusion…

Related

Published by

Promise

Be Ruthless in Your Planning to See Opportunity Costs Better

Impose Constraints on Yourself Simplify Opportunity Costs

Change the Frames and Opportunity Costs Become Clearer

In Conclusion…

Share this:

Related

Published by

Promise