Say No To Anything That’s Not A Priority
“There is surely nothing quite so useless as doing with great efficiency what should not be done at all.”
Whenever you say yes to something, you’re automatically saying no to other possibilities and potential benefits. It’s called, “Opportunity Cost.”
Most of us have heard of it or are aware of this concept on a subconscious level. We realize that we can’t do everything we want at the same time. But opportunity cost is more important to your life and career than you think. In recent years, I’ve been more aware of this phenomenon, and as a result, my career has improved massively.
In this article, I share how you can use the concept of opportunity cost to make better decisions. But first, let’s talk about what opportunity cost is.
Simple definition of opportunity cost
It’s a major concept in economics. Simply, opportunity cost represents the potential benefits that we miss by choosing one option over another.
There are two types of opportunity costs: Explicit and Implicit. Explicit costs, also called Accounting costs, are often used in business and economic terms. We’ll focus on the latter.
Implicit costs are often invisible. Time, for example, is an intangible cost. I could be creating a YouTube video right now, instead of writing this article. I have to decide: Which action gives me better results for my blog? More on that later.
Risks of ignoring opportunity cost
Since there’s usually no concrete price, it’s easy to overlook the cost of hypothetical opportunities. But we’re always faced with these costs everyday, even if we’re not aware of it. If neglected, opportunity costs will negatively impact our life, career, and relationships. There are two main risks.
1. Working on autopilot
A career that’s on autopilot means you’re working without getting anywhere. I’ve been there, and it feels hopeless. You show up, put in your hours, go home, and get paid. Rinse, wash, repeat. But you end up with nothing: No important knowledge, experience, or assets.