Opportunity Cost

How much does it cost to help your friend move on a Saturday?  What if you had planned to take your son to a ballgame?  What if you had planned to work overtime?

There’s a cost to everything you do, even if that cost isn’t immediately obvious.

Lawyers know this better than just about anybody.  Taking on that questionable case for your buddy may be the friendly thing to do, but it might cost you serious money if it means you need to turn down an important and/or high paying job.  For the same reason, if you charge $100 an hour and are turning away work, it makes little sense to paint your office or mow your lawn, even if you have to pay someone $75 an hour to do it for you.

Now that more and more people are charging for their time, it’s important to realize that saying “yes” to things can cost you just as much money as saying “no”.

Be Sociable, Share!
This entry was posted in Advice, Art, Business, Choice, Money, Productivity and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *