Every decision forfeits all other opportunities we had before we made it. We can’t be two places at the same time. In their excellent management book Tradeoffs, Drs. Greiff and Munter discuss the difficult options that face us in all areas of our lives. One case in point illustrates a common opportunity cost. It’s a true anecdote they call, “Bicycle vs. Mother”:

John is a precocious eight-year-old boy. Both his parents work. His mother is a management consultant and travels frequently. After being away for several days, she arrived home late one night and hugged her son.

He said, “Mom, I missed you. Why were you away so long?”

She smiled and replied, “One of the reasons I was away was to make enough money to buy you the bicycle you wanted.”

Young John looked at her reflectively and stated, “Mom, I really did want the bicycle. But mothers are more important than bicycles. So please stay home more.”

Even though we all are aware of the tradeoffs of “quality time vs. quantity time” in our relationships, we are not used to thinking specifically about how our decisions cost us other opportunities. Without this understanding, our decisions will often be unfocused and unrelated to helping us achieve our most important goals.

This week be more aware of the “opportunity cost” and use this to help you make great decisions!