Opportunity Cost

When Ignorance Isn't Bliss.

In Colossians chapter four Paul advises, "be wise in the way you act...make the most of every opportunity." Notice that Paul didn't say, "Make the most of a few opportunities." He didn't say, "Make the most of opportunities you're aware of." He said make the most of every opportunity.

Ever heard of the term, "opportunity cost"? An economist would explain it as "the cost of an alternative that must be forgone in order to pursue a certain action, or the benefits you could have received by taking an alternative action." Since none of us speak econobonics, let's translate. Opportunity cost is the price of not doing what Paul said in Colossians chapter four. It's the cost of failing to make the most of every opportunity.

Let's say you received two job offers. Both jobs are exactly alike: same hours, benefits, commute distance, quality of work experience, and quality of people. But one pays $50,000 per year and the other $75,000.

If, for some strange reason, you took the $50,000 position, that decision cost you $25,000. You didn't make the most of the opportunity.

Of course, it would be ridiculous to make this choice. But what if you didn't know about the higher-paying job? What if you weren't aware of the greater opportunity out there? The truth is, you still missed out on $25,000. Opportunity cost tells us that ignorance isn't bliss. Ignorance is expensive.

The key to change is discovering hidden opportunity costs. When we discover these hidden costs, we create new incentives to change. The powerful forces of loss aversion kick in and motivate us when we see what we're missing in our little bubble-world of status quo.

We just released Breaking Free, a debt-elimination and wealth-building system that is proven to save the average couple at least $300 per month while increasing their income. You know what that means? The average household is losing more than $300 every month they aren't equipped in these principles. That really bothers me. I can't take it when Christian families are down and out instead of flourishing and strong. I've felt what its like to be stressed out of my mind financially, and I don't want that for anyone. I want to see families find financial peace. I also want them to find financial power to support the church as it fulfills the greatest cause on earth: The Great Commission.

Help me, help yourself, and help others make the most of every opportunity!

about erik van alstine

Erik is a change expert and author of the personal finance discipleship system, Breaking Free: Financial Strategies that Transform Debt into Wealth. Breaking Free is like driver's ed in your financial life, a powerful video curriculum that offers experiential learning, assessment, and transformation! Take our free MoneyFinder Quiz to see just how much payoff Breaking Free can create for you!