Opportunity cost is defined by Oxford Languages as “the loss of other alternatives when one alternative is chosen.”
In a recent coaching session, I was reminded that everything we do is a choice. Even if that choice is to do nothing.
Which means that everything we do has an opportunity cost.
Here’s an example close to my heart! If I chose to eat that huge slab of chocolate, then the opportunity cost is not losing enough weight to fit back into my favourite clothes.
When it comes to money, the opportunity cost of going on a fantastic holiday instead of spending the money on a new car is not getting a new car.