Opportunity Cost

[S3VIDEO file=’M009-opportunity-cost.mp4′]

Any decision that involves more than two options has an opportunity cost. When you choose to do task A, you can’t do task B at the same time. When you spend your time playing video games, you should consider the opportunity cost of using that time to learn some productive skills.

So we must calculate the time value – how much money you earn in an hour. Then you compare your time value with the task that you can DIY and save cost.