What seems like an opportunity can cost you dearly
DO YOU go for a walk and clear your mind, or do you visit your grandmother and make her day? (If your grandmother can’t walk, you can’t do both at the same time.)
Or if you’re sitting in a restaurant and you have to choose between the fish and the steak—is the fish healthier, and only in season for a short while? But you’re dying for some meat, and the chips it is served with.
We’re making choices all day long, but as the website forbes.com quotes the super investor Warren Buffett, you’re not just choosing something. You’re also losing out because you’ve given up a different choice—and that is how you should calculate what you’re losing.
‘Opportunity cost’ is a well-known term for those who have attended an eco-nomic lecture. The official definition, according to the same website, is “the value of what you lose when you choose from two or more alternatives”.
Choose the chips, and you’re compromising your health; choose the…
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