This is the part most people want to ignore. And they are everywhere.
Going to work today, means you don’t get to spend time with your kids. It also means you don’t get to go to a different higher paying job.
In the quest for security, most people ignore the opportunity cost of what they are doing on the daily. Of course, part of the reason for this is because it’s nauseating to constantly think about and there is no perfect answer.
If you constantly evaluate opportunity cost, you would never watch your favorite movie. Or if a super rich person watched their favorite movie, the opportunity cost of doing so could be in the millions, which would be crazy for someone with no money to do. Which is why it also becomes circumstantial.
I believe the sweet spot for opportunity cost is not asking yourself daily, but while planning a project or any long-term commitment. What is this costing? And is there something else that will produce better returns? If the answer to the second question is no, proceed.