If you understand Opportunity Cost you can easily help people to make better decisions.
All of us make decisions based on what we value. Every transaction is based on each party involved preferring what the other has more than what he/she has.
Good decision making is largely based on simply understanding all of the options that each of us has, considering the various scenarios, and then choosing which scenario is most ideal for our circumstances.
In today’s show I add some serious meat to this idea with a bunch of pertinent examples:
- Car-buying options
- College options
- Housing options
- Eating and moving options
- Options on where we live
- Family options
- And more!
At the end of the day, you control your own life. Consider your decisions carefully and simply make the decision that is best for you.
- Support the show on Patreon: http://radicalpersonalfinance.com/patron
- Russ Robert’s article on Opportunity Cost: http://www.econlib.org/library/Columns/y2007/Robertsopportunitycost.html
- 100 Countries or an SUV: http://chrisguillebeau.com/100-countries-or-an-suv/