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Entries in choices (1)

Thursday
Apr182013

opportuniticity

Last night, in week four of Dave Ramsey's Financial Peace University, one of the things we discussed was "opportunity cost." I've heard of the concept before, but in light of the things that have been on my mind lately, and the changes that are happening in my life, it struck a chord with me on more than just the level of financial education.

Here's a simple definition to start with:

Opportunity cost  n. The loss of potential gain from other alternatives when one alternative is chosen.

In other words, what are you giving up when you make the decision to buy or do something else? 

From a money perspective, this is a handy way to talk yourself out of making a significant, pricey purchase of something that doesn't add value to your life. "If I buy this television, I lose the opportunity take a trip to Disney World." Or maybe "If I buy this car, I lose the opportunity to put a down payment on a house." Or maybe "If I spend $30 on lunch at this restaurant I'll lose the opportunity to take my wife to a movie tonight." 

This idea makes great sense to me. I'm a "consequences" kind of guy. I know that every action has a consequence, and the secret to having a good and happy life is to decide, in advance, the types of consequences you want to cultivate. So thinking in terms of opportunity costs works well for me.

It isn't limited to money, of course. Everything in life is an opportunity, and most of the time accepting one means losing out on another.

If you date this cute girl, you miss out on the opportunity to date her best friend—so which girl do you like or connect with better? 

If you choose to gossip about someone, you miss out on the opportunity to build a strong friendship with them—so do you want to be their friend?

If you choose not to exercise, and instead eat lots of junk food and do nothing but watch TV, you miss out on the opportunity to be fit and attractive and have lots of energy and strength—so do you care more for chicken wings and the latest episode of "Complete Trash: The un-Reality Show" than for your own body? 

If you cheat on your wife, you miss out on an opportunity to have a loving and trusting marriage—so do you love your wife more than the affair?

Looking at life from the perspective of "opportunity cost" can change your perspective on daily decisions, big and small. This is long-tail thinking, far-reaching perspective. This is you looking ahead at the life you want, rather than the life you have.

I'm a believer, so I see this from the perspective of God's will for my life. I think that one of the best ways to weigh opportunity costs for my daily decisions is to pray for wisdom and increased faith and to be filled with the Holy Spirit. With God's Word as my guide, I have something to weigh my choices against. It gives me a compass point, a life to aim for.

Maybe for you, that isn't the case. Maybe you value family values or professional success or personal integrity more. I respect that, because I know how powerful those things can be as motivations. I think, personally, you'd get all of those as part of a strong relationship with God, but I understand if you see it differently.

This is life-changing advice, and it's advice I'm following myself. Look at every decision in your life from the perspective of opportunity cost, and ask yourself if what you're choosing is leading you away from or toward your goals.

Which begs the question: Have you set any goals?

You can't weigh your opportunity costs without knowing where you're trying to go. This tool only works if you have a plan. So sit down, right now, and jot down three things you want to accomplish with your life. They can be anything, from "Lose 20 pounds in six months" to "Win a Pulitzer Prize before I turn 30."  Just make sure they're specific and that they have a timeline for completion. 

Once you have those three goals, use them to determine the opportunity costs of your decisions. Will Choice A get you closer to or further away from your goals? Will Choice B? Go with the choice that gets you closer, and you'll never regret the choice.

Last parting advice—choose the opportunity God has opened up for you. This is a chance to have a life that outlasts your time on Earth. It's a chance to have joy that makes your best memories seem like the least of your good days. It's a chance to experience love that goes deeper, farther, higher, and wider than any you've ever experienced, or ever thought you could. 

If you need help or advice about reaching this opportunity, let me know. I want to help you see it, if you're curious. And maybe I can help you see some other opportunities in your life, too. Sometimes we need someone who loves us to point out what's right in front of us, hiding in plain sight.