Hi Reader 🤓,

Ever feel like opportunities are just pouring in from every direction? New clients, exciting projects, fresh collaborations... It's like a feast with too many delicious options! Which one do you start with first?

But whoa there! Hold your horses.

Every 'yes' you utter is a silent 'no' to something else.

Intriguing, isn't it?

Enter the game changer - 'Opportunity Cost'. It's not just a fancy term, but a powerful tool to assess the value of the road not taken when you're busy making a decision.

Being mindful of your opportunity costs can drastically influence your business decisions. It helps you maximize your time and resources, and ultimately, guides you toward your long-term goals.

Here's a nifty formula to calculate your opportunity costs:

Opportunity cost = Value of the next best alternative - Value

Imagine this...

You're a freelance writer, and you're sitting on two job offers. One client is offering R1000 for a blog post, and the other client is offering R1500. You normally charge R1200 per hour, so you're scratching your head.

Which job should you take?

On the one hand, the R1500 job is more money. But on the other hand, the R1000 job is less work. So, what do you do?

Well, you could think about it in terms of opportunity cost. Opportunity cost is the value of the next best alternative when you make a decision. So, in this case, the opportunity cost of taking the R1000 job is the R500 you could have earned by taking the R1500 job.

And the opportunity cost of taking the R1500 job is the R200 you could have earned by taking the R1000 job.

So, which opportunity cost is worth the sacrifice?

Well, that's up to you. If you're really short on cash, then the R1000 job might be the better option. But if you have some time to spare, then the R1500 job might be the better option.

Ultimately, it's important to weigh the pros and cons of each option and make the decision that's best for you.

I challenge you to take the next 7 days to track your opportunity costs. Write down every decision you make, and the next best alternative you gave up. At the end of the week, review your list and see if there are any patterns. Are there any decisions you would have made differently if you had been more aware of your opportunity costs?

Warm African greetings

Robyn

Whenever you're ready, there are two ways I can help you:

​To find clarity in the work you offer the world |To grow your income with small habits and big plans.