Your opportunity cost

Our 20s and 30s have incredible opportunities, but it can be overwhelming choosing which opportunity to pursue.

Part of this overwhelm comes from grouping the value of all your options together. We feel that if we choose one option, we miss out on “everything” else.

If you want to make more effective decisions, it’s helpful to understand what your true opportunity cost is.

Your opportunity cost is a term used in economics which represents the benefits that you miss out on by choosing one option over another.

The key to applying this concept effectively is understanding that your opportunity cost is only the value of the next best option. It’s not the value of every other option you could have chosen.

As a really simple example, let’s say you have three options: A, B and C.

A is valued at $30, B is valued at $50 and C is valued at $20.

What is your opportunity cost if you chose A?

Well, if A is valued at $30, the next best option is B, because it’s the highest value of $50. Your opportunity cost isn’t $70 (which combines B and C). And it’s definitely not $20, because Option B is a higher value than Option C.

So in this example, Option C shouldn’t be a consideration for you at all. You shouldn’t be feeling any FOMO because you’re missing out on Option C. Though you should be feeling a little FOMO because you didn’t choose Option B.

When you’re weighing up a hard decision, try to place a value on every option, and then choose the option that has the highest payoff to you.

And if you’ve already chosen a path, it’s helpful to reflect on the value of the other paths available to you. If one has a payoff that’s higher than the path you’re currently on, should you consider changing?

Life Coaching For Your 20’s and 30’s
Our team would love to hear from you! Simply complete the Contact Form on our website.

Join Our Mailing List

We post insights to help you on your journey EVERY DAY! Join our mailing list for daily guidance on all things career, health, relationships and life!

In light of Deloitte’s AI report to the Government…

Yesterday’s Opinion Dominion asked: In light of Deloitte’s AI report to the Government, should AI-powered work be priced the same as HUMAN-powered work? Yes –

What’s better? A long weekend OR a shorter work week?

Yesterday’s Opinion Dominion was a fun one: What’s better? A long weekend: 45% A shorter work week: 55% I like these questions as there’s definitely

What’s MORE important to your career?

Friday’s Opinion Dominion asked: What’s more important to your career? Network: 63% Skills: 37% I went with Skills. I am a big advocate for your

Here's why we love what we do

Ben and Bec have taken me through the QLA Framework over the past 12 months. They have a unique understanding of what twenty-somethings are seeking - clarity, purpose and systems to achieve what they want in life (to name a few). It is with sobering gratitude that I can reflect on the past year and say wholeheartedly that I've managed to gain all of the above with QLA’s help.

The Quarter Life Framework is so simple, yet so powerful. I tend to overcomplicate things and burden myself with a lot of different problems to make sure everything is working. The Framework allowed me to simply get clear on what I actually wanted. A lot of the things that were stressing me and bothering me fell away when I realised they didn't really matter or they didn’t affect what I was aiming for. It allowed me to be more laser-focused on the actions that would help me get to where I want to.

Initially, my goals for the next few years were fuelled by fear of running out of time, but through regular discussions with QLA surrounding my life plan, goals, passions and ideal lifestyle, I was able to pursue the right projects with purpose and clarity. QLA took away a lot of the pressure and stress I was feeling, and helped me understand if my interests were just whims or if they were the right paths for me to take.

Quarter Life Academy not only enabled me to gain clarity in what I want for myself now and in the future, but also empowered me and grounded me with a confidence that I can achieve all I set out to do. Ben not only provides his insights and thought provoking questions, but he is supportive and encouraging the whole way through. The structure was comprehensive and thorough and I felt inspired to lead the career journey with Ben's caring and considered guidance. For anyone who wishes to elevate their lives beyond where they’re currently at, I recommend the Quarter Life Academy wholeheartedly.

Working with QLA has enlightened the extent to which fear dominates me. Once I understood this, I’ve more easily considered and grown excited by the prospect of success, rather than focussing on the potential failure which my mind had decided would most definitely eventuate.

By following the steps outlined in the Quarter Life Framework, and with Ben’s help to consistently challenge my own thinking, I was able to map out what I really wanted my professional life to look like in the foreseeable future. For anyone who wants to take their career and life to the next level, I highly recommend Quarter Life Academy!