We often fail to consider opportunity costs from "summary" of Predictably Irrational, Revised by Dan Ariely
Consider a scenario where you are faced with a decision about how to spend your evening. You have two options: you can either stay in and catch up on work, or you can go out with friends for dinner. Many people might weigh the immediate costs and benefits of each option - the work that needs to be done versus the enjoyment of socializing with friends. However, what often gets overlooked in this decision-making process is the concept of opportunity cost. Opportunity cost refers to the potential benefits that are lost when one alternative is chosen over another. In the example above, the opportunity cost of going out with friends is the work that could have been completed if you had stayed in instead. By choosing to go out, you are essentially giving up the opportunity to be productive and get a...Similar Posts
Always consider the consequences of your actions
When faced with a decision, it is crucial to pause and reflect on the potential outcomes that may result from our actions. Each...
Creating a todon't list is a helpful tool for identifying and avoiding non-essential tasks
By creating a "todon't" list, one can effectively weed out tasks that are not essential. This simple yet powerful tool allows i...
Selfcontrol can be difficult to maintain
Maintaining self-control can be challenging for many people. When faced with temptation, it is all too easy to give in and aban...
Experimentation is key to discovering new approaches
The process of discovering new approaches is inherently tied to experimentation. By engaging in various experiments, individual...
Create a decisionmaking feedback loop
The idea behind a decision-making feedback loop is to continuously evaluate and adjust our decisions based on feedback from the...
We often underestimate the power of social influences
We have a tendency to believe that we are in control of our own decisions and actions, that we are rational beings who make cho...
Mastering the art of logical thinking
Logical thinking is an essential skill that can be developed and honed through practice and dedication. It involves the ability...
Strategic thinking involves continuous learning
Strategic thinking is not a fixed set of skills that one can simply acquire and then use indefinitely. Instead, it is an ongoin...
Belief perseverance can prevent investors from accepting new information
When investors have a belief about a particular investment, they tend to persevere with that belief even when faced with new in...
Develop a mindset that values experiences over possessions
The essence of life lies not in the things we own, but in the experiences we accumulate. Possessions are fleeting, but memories...