Musings | Opportunity Cost
“Whenever you say “yes” to something, you’re saying “no” to something else”
Most of us say yes all the time - often with good intentions but not necessarily a lot of thought. Sometimes the yes comes quickly out of obligation or the anticipation of fun or simply FOMO (the fear of missing out). However, based on a TED article by Ryan Holiday, every yes comes with an “opportunity cost.” Saying yes to a weekend meeting or event may mean saying no to a walk in the park, or family time, or a bike ride, or your own private, quiet time. Staying up late to watch one more episode of your favorite show means saying no to a night of good sleep and a productive day.
Now, not all decisions have such dramatic downsides, and for sure, we need to say yes to experiences, fun, work, and sometimes even Netflix. However, when we apply awareness to our decision-making, we can step back, consider what we are saying yes to and evaluate the opportunity cost of, well, the opportunity.
In the July 18, 2021 edition of the Farnam Street Brain Food newsletter, the author identified two simple rules to use when determining whether to say yes or no to something:
Don’t say yes on the spot.
When you do say yes to something, schedule when you’re going to do it in your calendar right away. Book twice as much time as you think it will take to do it right.
Both rules are helpful, but the second rule is perhaps more important. Scheduling the work helps you realize that saying yes has a very real cost. By scheduling double the time, you’ll avoid over-committing and have the flexibility to take advantage of opportunities that arise.
If you need to say no after saying yes, author, Melody Wilding, has identified tactful and thoughtful ways to do that (check out her Harvard Business Review article for the full explanation):
Consider the cost: What is the impact of saying no?
Shift your perspective: If you can say no while citing reasons related to the quality of your work and time management, you display leadership skills
Be diplomatic but truthful: Be honest and direct, but don’t over-explain.
Preserve the relationship: Apologize and own your part - recognize the inconvenience you may have caused.
Offer an alternative: Provide alternative solutions and leave the door open for other ways to engage later.
Learn from it: Try applying the rule above or reflecting on the experience, making you less likely to repeat it.
We all want to be the person who says yes to everything, but the truth is, doing so does lead to sustainable habits. Remember, don’t say yes on the spot. Recognize that every yes response has a cost and if you must renege on a commitment, do so thoughtfully, honestly, and learn from the experience. Resource links are provided below.