Your Hourly Monetary Opportunity Cost – Examples

Make sure you are familiar with the concept of opportunity cost. If not, check out this and this. However you choose to approximate your hourly monetary opportunity cost, this amount is then to be weighted against outsourcing any of your outsourcable actions. Simply put – if you have things to get done and these could be [...]

Your Hourly Monetary Opportunity Cost – Intro

In your pursuit to live life optimally it helps a lot to know your hourly monetary opportunity cost. Here I will give a brief description of why this is good to know and how you go about calculating it. I assume you are familiar with the concept of opportunity cost – if not, check it [...]

A simple example of opportunity cost

To optimize your life, we believe it is necessary to incorporate opportunity cost thinking into your everyday life. First of all, we will look at the basic theoretical idea for calculating it. Say you want to spend one year in college and want to know how much that will cost you. Now, the normal way [...]

Thinking in Terms of Opportunity Cost

Opportunity cost is a key concept in economics. Being an economist myself and also being an active financial markets participant, I think in terms of opportunity cost everyday. However, it strikes me how few people actually know about this concept. Loosely defined, opportunity cost is a foregone alternative when a particular course of action is [...]