Opportunity cost is a concept you must know how to effectively apply to survive and thrive in the 21st century.
My definition of opportunity cost is this: The value of what you could be doing whenever you are doing something else.
For instance, writing this blog post in this moment carries an opportunity cost. Because I could be doing any number of other things: writing sales copy, marketing my business, spending time with my kids, etc.
One thing I continue to struggle with is the volume of information I receive, whether digital or in print.
Because every moment spent reading a magazine carries a high opportunity cost. During that time, I could be reading something more valuable. For instance, a book or newsletter. Or I could be applying concepts, strategies, and techniques I've already learned.
Now I'm examining additional subscriptions with a more critical eye. Am I reading them? Am I actually applying what I learn? If not, why am I still paying to receive the information?
You see, at some point, reading (and the consumption of yet more information) is simply a way to avoid taking action. It becomes an escape behavior.
This is why it's so important to choose carefully who you listen to... whose suggestions you believe are worthwhile... who is actually adding value to your life. Select a few premium sources and cut off the rest.
Otherwise, you may find yourself drowning in information, yet still thirsty for progress.
Think about the concept of opportunity cost. What are you doing right now? What is it costing you? What could you be doing instead that would add more value to your life?