Saturday, 13 December 2014
Thinking of change? Applying the concept of Opportunity cost..
For some reason I have been obsessed with the concepts from finance, and thus here is another one that is borrowed from there. This emerges from the fact that besides every decision or action we take, there lies a cost of not taking an alternative course. This applies to our own lives when we think of acting on anything,, and my statement has a positive connotation.
When we write a new story for ourselves, we always face some inner resistance or inertia against that change and the comfort of our current story loom large on future possibilities and actions. In the light of the concept of opportunity cost, this course that gives way to the inertia comes with a huge opportunity cost, and I call it the cost of positive change. Denial, postponement, procrastination, fears, lack of commitment to a cause are some of the barriers that push people back and drift them from their potential success, and that is the opportunity cost of not moving in that direction.
This opportunity cost actually grows when seen in light of the concept of compounding and thus the individuals are unable to reap disproportionate benefits of such positive change, and lost, what could have been a great opportunity in an area. It is evident that rational decisions need not be withheld, and the opportunity behind what may look momentarily difficult, is not lost. ( www.thegrowthevangelist.com )