Opportunity Cost and Self Sabotage
Tuesday, November 22, 2011
I've been working towards my Accounting degree online. This past week I started my Personal Finance class. It brings up the concept of Opportunity Cost and how it pertains to your finances. Basically Opportunity Cost is what you give up when you take advantage of an opportunity. Here's an example. When you put Money into a savings account, you lose the opportunity to spend the money now on something you want. Conversely if you spend the money now, you lose the interest that would have been earned on the money. Each opportunity has a cost. This can also be stated by the better known "Every action has an equal and opposite reaction."
Would you believe this concept slapped me in the face not on a financial level, but on a weight level. When I choose an unhealthy snack, I lose the benefits I would have received from the healthy snack. When I choose to get up and run, I lose the extra time to sleep or getting a little extra work or studying done. The main thing that I realized is that I don't think about the Opportunity Costs of my choices at all. This is where the self sabotage comes into play. There's a quote that I've heard that basically states that not making a decision is making a decision. You're choosing to do nothing.
So by not thinking of the Opportunity Cost and how it's affecting my weight, I'm really doing nothing and letting the costs pile up on me, all the while feeling like I have no power and no control.
I can be organized and have fantastic plans, but until I get my head in the game and make the decisions that have the lowest negative opportunity cost, I will forever stand still and choose to do nothing. In effect sabotaging myself! It's time for me to seriously think about the costs of my choices and to make mindful decisions and to get my head in the game.
I intend to do this in a very basic and easy way. Think before I act and ask myself 2 questions: 1) What is the healthiest choice I can make? 2) What is the Opportunity Cost?
My goal is to stay present and on track and make the healthiest choices that will lead to a more fit and healthier me.