In the entrepreneur’s world, there’s a key concept that must be mastered early called Opportunity Cost.
The funny thing is that this concept should be taught to everyone in school. (We all come across this problem.)
Here’s the definition from Investopedia:
“Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.”
“Because by definition, they are unseen, opportunity costs can be easily overlooked if one is not careful. Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.”
We all have limited resources—namely:
- time
- energy
- and money
If someone spends hours pushing papers around, that prevents them from doing an hour of something valuable.
If someone uses their best energy to play video games, that might rob them from exercising.
And if someone spends $100 on a bogus supplement, that prevents them from spending $100 on something else—like on an eBook that finally revealed the gaping hole in their routine.
Don’t Fear Action But Be Smart
Now, obviously, we can’t get too fearful about taking action.
Being frozen with fear of making the wrong decision is a decision as well.
Anyways, you can apply this concept all throughout your life—how you earn money, what you do for workouts, etc.
For example, there’s nothing inherently wrong with someone spending their time watching Netflix or playing video games for an hour.
But that could be robbing them of a better alternative:
- An hour of connecting with their spouse one-on-one
- An hour of reading a book that could develop what they’re capable of
- An hour of sleeping they so sorely needed for good health
- An hour of catching up with an old friend on the phone
- An hour of brisk walking in the sunset
At the end of the day, we’re often pretty tired.
Someone doesn’t watch Netflix because they’re excited to—they watch it because it’s the only thing they feel they’re capable of at that point.
They’re just too tired to lift weights or to go for a walk. (Or do anything else at all.)
In that case, Netflix is the option when someone is low on energy (and perhaps novelty or excitement.)
Looking at opportunity cost—there’s another option—an option that actually restores their energy like sleep. (And if novelty/excitement is a consistent issue, a weekend trip often does wonders.)
There are ways that person could increase their energy reserve as well—through exercise, sleep, and nutrition.
It may cost them a bit upfront in energy, but it’ll pay itself off pretty quickly.
I found that after 30 days of overhauling my life by adding in weights and eating properly, it was no longer difficult and draining. It was already rewarding me (in health, energy, and looking better.)
Anyways, here are few situations many of us come across.
Opportunity Cost Examples With Health, Strength And Fitness
ENERGY:
- I only have so much energy to lift weights with—what are the best exercises to get the results I want? Should I be doing another set of my compound lifts or doing more isolation work?
- 6.5 hours of sleep with Netflix or 7.5 hours of sleep?
- Do 30 minutes of Bodypump or eat one less cookie? (150 cal—2015 study)
- To burn fat, should I do more sprinting, more jogging, or eat less calories?
PRICE:
- Should I buy a premium workout or pay nothing and spend time searching for a free one?
- Eating more beef is expensive—should I cut out beer/chips to pay for it?
- Should I buy supplements, better quality food, or coaching?
TIME:
- Should I drive/park/change at the gym or build a home gym?
- Prepare food three times a day for variety, or do intermittent fasting and cook once for dinner (and reheat leftovers for tomorrow’s lunch.)
- What are the most time-efficient exercises to get the body I want? (Deadlifts and most barbell movements score high for this.)
Anyways, once you understand opportunity cost—you see it everywhere—even when it comes to health and fitness.
In our program True Gains, we teach you everything you need to know to become strong, lean, and healthy as rapidly as possible. This will save you time searching the internet as we condense ten years of coaching into a simple program, save you money from buying bogus supplements, and give you more energy because you become healthier.
