Hm, no thank you very much! I am not talking banking or economics here. I am talking life! Every action or inaction of ours costs us something. Just as we also gain some form of benefits from what we decide to or not to do.
I see a new pair of shoes as I walk past a boutique and ruminate on whether to buy that shoe. Well, the cost of buying that shoe to me could be missing some luxuries for a specified period of time in order to make up for the expense, going into debt as a result of making that purchase or drawing from funds that have been set aside for a particular purpose.
Now the benefits on the other hand could be looking good in the shoes at a party, having a warm fuzzy feeling of satisfaction that I have kept up with the joneses, seeing the green look on my friends' faces while I strut around in my new heels. Benefits could be quantified just like the costs too, or they could be measured in terms of emotions.
Whatever it may be, before you take any of life's decisions: marrying a wife, going to the movies, buying a new dress, chastising your child, whatever: weig the costs against the benefits to determine if you should go ahead and take that decision or whether it would be more prudent to beat a hasty retreat.
Your values usually determine what that choice would be. Candid advice however is that if the costs outweigh the benefits (what bankers and economists call potential loss), then you need to quietly back down the hall way! If on the other hand, the benefits outweig the costs, then, it is a done deal.
Just remember to measure like and like. In the example above, weighing mushy, feel good emotions against parting with cash are unlike terms. If however, you are weighing emotions against emotions and values against values, you are more likely to take a more balanced opinion!
Peace. Talk to you all soon!
