Cost Versus Benefit

In order to fully understand this blog (and life), I ask you always keep in mind one important idea.

Cost vs. benefit.

The idea is simple. Every action has a cost and every resulting action has a benefit. If an action has a low cost and a high benefit, then it is generally regarded as a good action. If instead you find yourself with a high cost and low benefit, you will probably look for a different option.

I will also use the idea of risk vs. reward interchangeably. They are, in essence, the same idea.

Don’t believe how important this idea is? You just put it to good use by reading this sentence. In the back of your mind, you weighed the cost of reading that sentence vs. the potential benefit. Reading that sentence (and this one) cost you time that you could have used for anything else in the world. Yet, you found the benefit of satisfying your curiosity (or appeasing your pity towards me and this blog) was worth that cost.

Consider for a moment whether or not you will eat a banana in the next sixty seconds. If you are hungry, enjoy bananas and happen to have one near you, the costs of eating the fruit are low and the benefits are potentially high. Perhaps you do not have a banana readily available. Poor you. Even though you might love the taste of bananas and even if you are starving, the cost of leaving the comforts of your current location may prove higher than the potential benefits of satisfaction.

I really have not told you anything academically earth shattering. I am not a trained economist nor am I a certified psychologist. But you do begin to look at every decision in life a little differently when you examine each decision you make as a balance of cost and benefit or risk and reward.

And that will be key.

Random Fact: A red, yellow or orange bell pepper provides more vitamin C than a navel orange.


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