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The hidden costs of every decision

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Everything you buy or do comes at a cost. You pay the price with your money, your time, or your energy. Some costs you pay without thinking because you believe you have no choice. You pay the rent or the mortgage, for example, because bad things will happen if you don’t.

But you may have other options.

You might negotiate a lower rate. You might move to lower-cost digs. If you never consider these options, you might pay more than necessary. Over time, a lot more.

Decisions come with another hidden cost. The opportunity cost.

The opportunity cost is what you give up when you decide to buy or do one thing instead of another.

When you spend a dollar to buy something, that dollar cannot be spent on anything else. Similarly, when you spend an hour doing an activity, you can’t spend that hour on any other.

What you give up by doing one thing instead of another could eventually cost you a fortune.

An hour spent on a client file might bring you hundreds of dollars. That same hour spent on attracting a new client, however, might ultimately generate hundreds of thousands or millions of dollars.

Yes, you have to do the work. But don’t do it–or pay your rent–without considering the hidden costs.

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