The Hidden Costs of Every Decision
A Guide to Smarter Choices
Inspired by Seth Godin
Everything we do carries a cost. But not all costs are the same, and understanding the distinctions can open doors to more thoughtful and intentional decision-making. Seth Godin has a knack for simplifying complex ideas, and his approach to the three types of costs — opportunity cost, sunk costs, and marginal cost — is no different. Here’s a breakdown of these costs and how, by understanding them, you can unlock new possibilities in both your personal and professional life.
1. Opportunity Cost: The Power of What We Don’t Do
Every choice we make eliminates another option. When you say “yes” to one thing, you’re saying “no” to something else. This might seem obvious, but in practice, we often forget to consider what we’re giving up. If you decide to binge-watch a show, you’re giving up the opportunity to read, learn, or create something new. Recognizing this trade-off isn’t about guilt — it’s about making conscious choices that align with your goals.
