What else could you do with that hour?

Figure out the opportunity cost before saying yes

“Opportunity cost” is one of the main concepts of economics. The idea is that in a world of limited resources, devoting resources to one thing means not devoting them to something else. The opportunity cost of a slightly more expensive car means not taking an extra trip. Offering one product or service through your business most likely means not offering something else.

This obsession with trade-offs may be one reason that economics is known as the dismal science. But time turns out to be a limited resource too. Indeed, it is even more limited, as you can sometimes make more money, but you can’t make more time. Time devoted to one thing is time not devoted to something else.

Now, there’s no reason to drive yourself crazy with this. Most people waste enough time that it might be possible to spend more time on lots of different priorities without giving up much. But I do think it’s worth asking, before committing to something, a simple question about trade-offs. What else could you do with that hour?