Everyone’s at least heard that saying, right? “Live every day like it’s your last (or like there’s no tomorrow, either one)”
Well in Econ (AP Microeconomics, btw) we learned all about opportunity cost. Basically if you lose more than you gain by doing something then you have a high “opportunity cost” and you shouldn’t do it.
An example would be if you bought $30 concert tickets for a band you kind of liked on Wednesday for a concert on Friday, then on Friday your friend invites you to a movie (you have to buy a $10 ticket). Economists would say that if going to the movie would make you happier than going to the movie, then you should go. In an economists’ point of view, the $30 you spent on the concert is dead–it shouldn’t play into your decision about the movie. Whether you go to the concert or not, that money is gone.
By this logic, if “living like there’s no tomorrow” is too trouble some, wouldn’t it be more worth while to live like there is a tomorrow? If you feel tired one day, it isn’t logical for you to go party hard because you may not see tomorrow if you would be happier staying in bed, even if there isn’t a tomorrow.
So here’s my advise: live so your opportunist cost is minimal 😉
AP Microeconomics: life choices and stock markets all in one.
~Courtney