On Opportunity Cost and finances

 


Last month or so, my interest was in Behavioural evolution and Biology

Now, I'm leaning towards Microeconomics. Talk about interdisciplinary student - innit 😂😂😂

But jokes apart, the professor said something that struck me. That one of most important concepts that businesses utilize is "Opportunity Cost" and this plays out predominantly during scarcity

And I'm immediately drawn back to the first time I heard the term - "Opportunity Cost." It was in my senior secondary school - Economics class

I'm reminded that opportunity cost is the backbone of my spending habits. From my JSS 2, when I mostly forfeited going to the tuck-shop (canteen), so I could save money for pictures.

Opportunity cost is the guiding principle for my expenses. So when I budget to spend "A" for this month, and something springs up. I weigh both options - always.

This is also where "wants" and "needs" play vital roles. I'd hardly buy a want, if the other is a "need"

If you're a spendthrift, you should consider Opportunity Cost 

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