Dave Ramsey talks about the opportunity cost of spending money. If you invest $1000 into an IRA, you can’t use that money to go on a vacation, and if you use the $1000 to go on a vacation, you can’t invest it in your retirement fund.
In theory we all understand this, but in reality many of us act as if it is not true. We spend money without having a clear understanding of our income and outgo, and that means we can unknowingly give up an opportunity. I lived this way for years, and it sometimes cost me something I would have liked to have had, or would have liked to do more than what I actually spent the money on.
Yes, this is a plea for you to get a handle on your finances if you have money struggles, but it’s more than. We misspend our time the same way we misspend our money, but we tend to be even less aware of over-budgeting our time than our finances. Give it a bit of thought, and I’ll pontificate tomorrow.