There is supposedly research to show that we have more options than ever, creating infinite imagined opportunity cost and lots of people feeling unhappy or regretful! It's really important to remember the one or two things which are most important to us and not worry too much about choices relating to other things. (Especially if we've already made the choice!!(
Thats why some or many are indecisive about stuff anytime cause u try weight the pros and cons of what u do or buy anytime. u might think it a good idea , but then we give ourself time to think and decide how bad u wanna do it or wanna buy for any reason. and what we deicde does not always go as planned at time or later cause almost always something gets in the way of what we decide anytime.
Right, but then again what kind of career are you starting without a college degree? Which employer is more welling to employ a worker who doesn't have a college degree than one who does?? You can work anything through your college life, sometimes even get internships that do qualify as job experience. You can work as a clerk at a supermarket but still say that that job has taught you patience, handling people better, and handling your time better since you were juggling work with school.
@@tasneemahmed5821 I get what you're saying. But many people who got a college degree aren't actually educated in the areas that affect them the most like their finances. And many people honestly don't even get paid that much to really justify the cost of their education. There are tons of other opportunities out there that I am seeing now as a Graduate Student that I wished I had capitalized on sooner. And tbh in my experience in the engineering field, many jobs that higher college graduates spend the next few months teaching them on the job anyway and have heard similar things from my friends in different fields starting their careers. So based on my personal experience, I have been left to wonder what was the point in my first 4 years in my college education.
@@mycathasawhitetoe that college degree conveys certain information that an employer is interested in, even though they'll provide a degree of training. That degree tells thern that you have above average intelligence, a strong work ethic, and the ability to set a long-term goal and meet it. There's also probably things you learned in academia that you use professionally, but have simply become second nature, like having an intuitive sense of weights and measures.
@@tasneemahmed5821 I dont have a degree. I do however work for the US government as a mechanic and make $50k per year in salary. I make around another $20k in benefits. I went to school for 1.5 semesters. I have $9k in student loans. The supplemental education I gained in school on top of my previous experience as an independent mechanic was instrumental to my success. There are scenarios that it works without a degree.
I had a boss that didn't understand opportunity costs. He had highly paid programmers painting the office and moving furniture when he could have hired cheaper labor to do that. He figured it was free since they were salaried.
@@itisdevonly True, but they weren't. It was during regular business hours. Though they also worked extra hours here and there, so the boss got his worth out of everyone.
Well if the office was getting painted, the programmers wouldn't have had a place to work, so your boss would still have to pay them while they were at home, might as well keep them working by painting it themselves instead of pay extra people to do the job as well
I’m so glad you guys covered this. I’ve tried to explain opportunity cost to friends who only think about the accounting costs, and you guys really nail your examples on the head
My 13 year-old daughter has struggled with opportunity cost her entire life. I love how this video treats the subject, especially the warning against overthinking the choices. What I've told her is that once she's made up her mind, she should do all she can do to stop thinking about the alternative, like it never existed in the first place. This isn't universal advice, but for someone who frets like my daughter does and who often finds it impossible to enjoy the choice she went with because of the loss of the other option, I think it's exactly the solution to strive for.
Them: "You and your wallet can't be in two places at the same time" Well, tell that to all these online subscription services popping up all over the place.
"If Angela goes to college, she may make more money down the road, but she will miss out on 4 years of salary and job experience that she would have gotten from a full-time job." Me, a full-time employee who just started full-time college: 🙃
That opening pun made genuinely laugh out loud. Good to see Phil's dad jokes are coming in! 😂 As someone who came up through high school in the big emo and goth explosion circa 2004, I also laughed a little too hard at that MCR reunion. Me in 2020 loves blazers and penny loafers. Me in 2004 loved all black and metal spikes. Ah maturity.
I've been juggling between getting my PhD or going to work right after undergrad. I think getting the extra education would have a tremendous benefit in my field.
COVID-19 has actually improved my life and I wish I could say the same for most people. I used to spend around $300/month commuting to San Francisco for work, but since I work from home now with the same hours and pay, I now save that money by not commuting, I get to wake up 2 hours later which allows me to spend more time playing video games at night, and I use the time I would have spent by commuting back home by going mountain biking or road cycling. Back in February and March, I took advantage of the empty roads and parking lots to learn how to ride my motorcycle better without worrying about cars. But again, I am spending much more time and money on my hobbies than I am saving by not commuting.
Events don't cause opportunity costs. Opportunity cost is foregoing one thing in the pursuit of another. You control the outcome of the choice. So covid cant cost you to have an opportunity cost. The opportunity cost could be: After being furloughed, you forego the unemployment benefits because you decided to find another job. Giving up unemployment short term in order have a job long term.
@@richiea7969 I don't know if it's only my state, but the unemployment pay was ridiculously good during the last 5 months. My girlfriend was making about 4 times what she made before the pandemic hit. That's on top of a 11k check. My friend made $1,348.46 a week... *a week* and she also got a check for over $10,000. I almost quit my job to sign up for unemployment.
"Opportunity Costs" is the single most important thing I learned in economics. It reverberates across all decisions I make, and effects the outcome of everything. Thank you for bringing this up!! Excellent video, as always.
I used to think about this a ton, but I started investing more and it helped me get over the anxiety of it all. Opportunity cost when you sleep vs. Side hustle.
The subtleties in this video was amazing!!! From the joke at the beginning to the inclusion of a gay couple. I love this show, educational, fun, and inclusive.
Very nice topic you covered....A year ago i rented a flat for 130 dollars here in my country India with my family but i have to pay for my drinking water..For every day use they providing very less water and the biggest problem is the pollution OMG not a single plant or tree around i have mild asthma and i am spending 30 dollars on my doctors fees and meds for 3 months and my 6 month old niece living with us she to has some cough here and there so i moved out of there and found a nice small flat in a VIP area with tons of woods around clean air,clean and free water but its a small and a little expensive home from previous one. but we can manage it...The best thing that our heath is good now...its for 180 dollars rent but fro 50 dollars more we have clean air,safe secure area,hospitals are near free water less electricity cost lest internet cost with fast speed 24 hours of water....so for me its a wins and now my niece is 1 years old and happy...😀
It's amazing to see such detailed representations of opportunity cost in discussion! I'd love to see more videos on this :) To add: 5:19 That is called "psychic benefit"
I NEEDED THIS VIDEO!!!! I knew what opportunity cost was roughly, enough for me to drop out of college, but I didn't know any vocabulary or details. Thank you!!!!
I have always known about opportunity costs, but this explaination was something else. The dilemma of having to choose between financial benefits and costs against those experiences that cannot be put up in a balance sheet is real. But, I think, most times, it's always good to just go ahead with the experience. You always end up learning something new whether or not your decision was correct.
These are the main reasons why decision making is extremely hard. There's a lot to consider (money, time, experience, stress level, etc) and then when you finally make up your mind, you'd think you should've gone the other way.. :(
Very good vid, thank you. My personal experience is most dont think this way. Only thing missing from the vid, which I'm sure your aware of but probably left out due to simplicity is the opportunity cost of putting the money in an asset like stocks, which compound over time. So that bright shiny car that you want vs needs doesn't actually cost you 50k its 100k over a 10yrs period.
4:30 Papa Musk already thought about that opportunity cost That's why he building more gigafactories to specialize That Texas factory will focus on Tesla Semi and Cybertruck
Hmm Conservative politicians will have you believe that those factories were made because of California’s Democratic Government. Maybe Elon was playing 4D chess and trying to strong arm the Californian companies to give him an even better deal for his factories there? No, must be politics. (Sarcasm).
Being a sought after caterer in New York City threw me into this quandary. Skilled caterers with a few good companies can work at will. I could go 3 weeks without a day off if I wanted. Often I worked 7 days a week with 2 doubles that week. I knew some people who would work a few weeks worth of doubles and would consider a single 5-hour shift a day off. Someone would ask me if I wanted to go to a movie with them. I'd think, if I gave up my work that day, that movie would cost me $120. Then, one day, we were talking about one of the older catering captains (late 40s which was old at the time). Someone claimed he had a few 100 thousand dollars stuffed under his mattress. He rarely took days off. Never went anywhere or did anything. He had never been on a vacation. So I decided, sure I want to make money, but I couldn't think about the movie costing me $120. Otherwise I'd never go anywhere or do anything with my friends.
Def agree that each decision we make can reflect our budgeting. I really love how you explain everything. Can you please make a video or information regarding creating business vs nonprofit. Thank you!
I heard that The Road Not Taken was basically the poet saying he realized both paths were virtually the same, but that in the future he'll be saying how he took the better one, even though he can't tell and was actually full of regret/"what ifs" for the other path. Which is oddly (or perhaps, by design) appropriate for this video! www.theparisreview.org/blog/2015/09/11/the-most-misread-poem-in-america/
This is how it was taught in one of my American Lit classes! Basically either path would have “made all the difference” because that’s what choices inevitably do
I try to think of that whenever I'm in the slowest checkout line at the grocery store, or the slowest lane in traffic, etc. I try to tell myself, "Alright, this line seems like the slowest now, but if you'd gotten into that other one, it would have been even slower (even though it's cooking without you in it) - so this really is the best you could have done." Is that what he meant?
Is there such a thing as an "opportunity benefit"? E.g., maybe you choose the long commute and you gain so much driving experience and joy out of it you later change your career and become a very successful uber or truck driver? Or, you go to the concert and there's a workplace shooting later that night and you miss out on that.
A My Chem romance reference and diversity while learning financial skills through an engaging and convenient platform..... Two cents is hands down my favourite RUclips channel. You guys rock!!
When My Friends Ask me to go to a bar or club and tell me to do that instead of working and I say I can't afford it and then they say you don't have to spend any money, but then I say yes but I'm missing out on money so in effect it might cost me a hundred or $200 that's opportunity cost
@@themaestro9527 Not always true, I've been to a bar plenty of times and spent $0, only cost being opportunity cost, gas expense is also $0 at times if i don't drive
Hello Two Cents, I love your show and as someone recently graduated from college it has been really helpful from the start. I just had a thing which I notice often when watching the videos so I would like to share that, hopefully it will help people like me who watch the channel. I know it's a PBS show and hence a main focus would be america, but I'm sure a lot of people who watch this channel (me included) are not from there and a lot of information in this channel does not apply outside US It would be great if you could increase more general topic videos which can be applicable more globally I hope this comment reaches you guys and thank you for the nice videos
Best opportunity cost for me was when i decided to buy a $2000 macbook pro or upgrade ssd and ram on my old laptop for $60. I took the latter path and never been happier.
I just learned that cost of enjoying life is called opportunity cost. Great video! I agree with the video there is no cost for life experience. Enjoy life at least once!.
This is nice I have to weigh my decision always before making any financial spending. I made wrong choices which left me now for about 4 month without salary. But thank God am still alive to learn. Thanks from Nigeria
I missed seeing Prince perform live a few years before he passed to study for an exam..... I aced the exam. I never got to see Prince. I regret that decision to this day. Sometimes you got to live a little.
I have spent my whole life miserable by keep calculating the opportunity cost after taking a different decision and thinking what would have been if I would have taken another route from marriage to financial decisions. Every decision costed me so much in opportunity cost in terms of happiness and finances that makes me sad and ultimately makes me to under perform. I guess others too would have felt the same
Thank you for the warning at the end. This sort of thinking has kept me up at night for years and don't want others going through that. Sometimes, just living life is good enough without stressing over every decision.
You guys are awesome. You explained this concept so well and covered so much in a very short video. Vic should’ve applied the concept of sunk cost. If the concert experience wasn’t that great then he should’ve left and use his time for something that would give him more utilityI instead of staying because he paid for the ticket. I just learned these concepts in a class of macroeconomics.
How the world has made us meet once again. Right now, I am learning about opportunity cost in Economics and we just finished "Road not Taken" by Robert Frost in English Literature.
Economics is about counting costs, and the cost to be counted is “opportunity cost,” arguably the most basic concept in economics. It is defined as the next best alternative to the one chosen, in other words, as the best of the sacrificed alternatives.
Thanks so much for this video!! I'm a 43(F). I'm going to college for psychology and sexual science. I've been at a community college for a couple of years. which I pay for myself. No loans, but it's going to take longer to graduate and go to my 4 year school. I just went back to my 2 customer service jobs.
Great video!!!!! But I think its high time we all know that for trade to be successful depends on the capability of your broker and the willingness to invest what can yield a meaningful profit.
The rich see economic crisis as the perfect time to invest,I believe now is the best time to invest,don't just sit back...I will advice people start a carrier in crypto today.
spreadsheets excel when it comes to quickly calculating opportunity costs. puns aside, I recently got a job that intuitively didn't make sense, by running the numbers, I discovered that an hour commute to a 48 hour shift, with 4 days off, actually reduces my commute time and miles compared to a half hour daily commute. The biggest (for me) intangible benefit is having 96 hours in a row where I don't have to go into work. For any curious, the job is as an Ambulance driver (not a medic) and from what I've been hearing, a lot of ambulance services are hiring drivers because it allows the medics to be more evenly distributed, so if you need a job and know anyone in EMS ask if they're hiring.
I made some decisions based on the scenarios presented-1st-how much have I made for the week already will determine if I go to the concert or catch the next one(almost always another one). Can I compromise and just work half the shift and get coverage or ask off for the other half?(option?) Are they even good seats? 2) Try to sell the vintage wine first (personal decision I would just rather have the money). I can always drink it with someone if it doesn't sell-satisfying win-win for me. Would make for a great surprise for someone special! 3) Life is short! Give me my time back so I can maintain my sanity! Opportunity vs Sanity, but if the savings to commute is significant meaning $200 a month and up for me-More time than money! Lolol! No problem making these decisions. That's my 2 cents! Great video!
I found that one way to stop spending excessive amount of time browsing social media is to keep reminding yourself of the more useful and fun activities your could do instead.
Only thing I heard was don't skip jobs for concerts. Which is very sound advise. Be fiscally responsible and the YOLO life is not for normal people, only millionaires
Cheers to you for representing Ted and his boyfriend so casually. It may seem like no big deal to you or many others, but more and more casual representation in this manner is what creates equality in society's mind, little by little. Cheers!
Yeah, one of my friends overthinks pretty much all her decicions, to the point she misses out on events because she can't decide which one to go to. And not just expensive ones, but stuff like a free language cafe at library versus choir practice.
Not really. If you don't manage a windfall responsibly, that just means you will quickly be back to where you started, rather than having advanced your position in life. Just because you happened to stumble upon something worth money doesn't mean that money couldn't be put to better use. Every single lottery winner receives their money through a windfall, but that doesn't mean anything when it comes to how best to manage their finances, and failure to do so is why so many end up broke. The thing I don't like about the example is that there would be a non-financial cost to sell the wine. Finding a wine buyer and getting them to pay a good price for a singular bottle of wine from someone who walked in off the street is not going to be easy. I'm not sure the effort to liquidate the bottle of wine would have been worth $100.
Doesn't matter. It might not have cost you anything to acquire the wine but drinking it is choosing to forgo whatever you could have earned by selling it.
@@BTrain-is8ch Yeah, but I just have trouble labeling that a "cost". If I were on Cash Cab, for example, I would always, always, always go for the double-or-nothing, because I'm betting with house money.
“Life can only be understood backwards; but it must be lived forwards.”
― Søren Kierkegaard
Tenet?
Who the heckkk is living life forward?
@@manujohn99 Everyone in this spacetime continuum.
@@LG123ABC spacetime continuum is the past repeating itself.............stumphead
💯
This has plagued me with stress with even the most minor decisions, but the last statement is really encouraging. Thanks guys!
Stan same here
Exactly. I felt the same.
yokanand thirupathi p
There is supposedly research to show that we have more options than ever, creating infinite imagined opportunity cost and lots of people feeling unhappy or regretful! It's really important to remember the one or two things which are most important to us and not worry too much about choices relating to other things. (Especially if we've already made the choice!!(
Thats why some or many are indecisive about stuff anytime cause u try weight the pros and cons of what u do or buy anytime. u might think it a good idea , but then we give ourself time to think and decide how bad u wanna do it or wanna buy for any reason. and what we deicde does not always go as planned at time or later cause almost always something gets in the way of what we decide anytime.
Making no choice is still a choice.
My dad told me "If you don't make a decision, someone else will make it for you!"
@@Donnah1979 True, and what they decide u may not like lol.
Def agree!!
@@cable30 Yeah that's the point
How much did it cost you though.
The cost of going to college vs starting your career is probably the most overlooked opportunity cost in the modern world. Great video!
Right, but then again what kind of career are you starting without a college degree? Which employer is more welling to employ a worker who doesn't have a college degree than one who does?? You can work anything through your college life, sometimes even get internships that do qualify as job experience. You can work as a clerk at a supermarket but still say that that job has taught you patience, handling people better, and handling your time better since you were juggling work with school.
@@tasneemahmed5821 I get what you're saying. But many people who got a college degree aren't actually educated in the areas that affect them the most like their finances. And many people honestly don't even get paid that much to really justify the cost of their education. There are tons of other opportunities out there that I am seeing now as a Graduate Student that I wished I had capitalized on sooner. And tbh in my experience in the engineering field, many jobs that higher college graduates spend the next few months teaching them on the job anyway and have heard similar things from my friends in different fields starting their careers. So based on my personal experience, I have been left to wonder what was the point in my first 4 years in my college education.
I felt like my college education was a waste of money... But i bet i would feel different if i took the other road 😆
@@mycathasawhitetoe that college degree conveys certain information that an employer is interested in, even though they'll provide a degree of training.
That degree tells thern that you have above average intelligence, a strong work ethic, and the ability to set a long-term goal and meet it.
There's also probably things you learned in academia that you use professionally, but have simply become second nature, like having an intuitive sense of weights and measures.
@@tasneemahmed5821 I dont have a degree. I do however work for the US government as a mechanic and make $50k per year in salary. I make around another $20k in benefits. I went to school for 1.5 semesters. I have $9k in student loans. The supplemental education I gained in school on top of my previous experience as an independent mechanic was instrumental to my success. There are scenarios that it works without a degree.
I had a boss that didn't understand opportunity costs. He had highly paid programmers painting the office and moving furniture when he could have hired cheaper labor to do that. He figured it was free since they were salaried.
would only be free if they were working unpaid overtime in order to do it
@@itisdevonly True, but they weren't. It was during regular business hours. Though they also worked extra hours here and there, so the boss got his worth out of everyone.
Also had workers he knew and so less hassles to deal with anytime instead of hiring outside help which may have cost more if any hassles at time.
Well if the office was getting painted, the programmers wouldn't have had a place to work, so your boss would still have to pay them while they were at home, might as well keep them working by painting it themselves instead of pay extra people to do the job as well
sounds like you were a reluctant slave
I’m so glad you guys covered this. I’ve tried to explain opportunity cost to friends who only think about the accounting costs, and you guys really nail your examples on the head
My 13 year-old daughter has struggled with opportunity cost her entire life. I love how this video treats the subject, especially the warning against overthinking the choices. What I've told her is that once she's made up her mind, she should do all she can do to stop thinking about the alternative, like it never existed in the first place. This isn't universal advice, but for someone who frets like my daughter does and who often finds it impossible to enjoy the choice she went with because of the loss of the other option, I think it's exactly the solution to strive for.
Opportunity cost is the most important concept in economics, especially when combined with the concept of marginal cost and marginal benefit.
The opportunity cost of thinking of opportunity cost: living life.
Them: "You and your wallet can't be in two places at the same time"
Well, tell that to all these online subscription services popping up all over the place.
i haven't even watched this yet... but i know i'll be using it in my classroom
at what opportunity cost? :)
The opportunity cost of showing my class... Might be my job haha
This is a good topic or what if kinda videos that some or many may never see and learn from anytime.
That opportunity cost got VIc singing "I'M NOT OKAYYYYYYYYYYY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"
5:33 also the work to sell a bottle of wine for just $100 when you could just enjoy it.
"If Angela goes to college, she may make more money down the road, but she will miss out on 4 years of salary and job experience that she would have gotten from a full-time job."
Me, a full-time employee who just started full-time college: 🙃
I'm also surprised they didn't mention student loans!
Her: "You can see how opportunity cost, can send you down a rabbit hole of infinite possibilities..."
Me: "Then why did you tell me about it?" 😭😭
Why did u click the video??
Opportunity cost: The time you spent thinking on other opportunity costs can be used for something more productive
Honestly I never thought of Opportunity Cost or knew the term. Thanks for shedding some light on it for me :)
"Have you got something better to do?"
OMG what an incredible way to start an episode about opportunity cost!
We're learning about this is my econ class 😂 the timing of this video wow
Lol same
That opening pun made genuinely laugh out loud. Good to see Phil's dad jokes are coming in! 😂
As someone who came up through high school in the big emo and goth explosion circa 2004, I also laughed a little too hard at that MCR reunion. Me in 2020 loves blazers and penny loafers. Me in 2004 loved all black and metal spikes. Ah maturity.
LMAO
I didn’t catch the pun :(
@@clairedubiel6226 Phil said “or do you have something better to do?” Which is the whole idea behind opportunity costs
As an economist, I really appreciate you guys talking about opportunity cost 🙌🏼
This is an episode that is actually extremely important to know about!
I can still remember my Economics teacher from high school saying "Opportunity Cost is the opportunity lost". Great way to remember what it means.
awesome! thanks for sharing that it'll be easy to remember now
Ted and his boyfriend so inclusive
This video is a good one. I see that the quarantine haved afected the quality of the channel but this one really bring back the old Two Cents
Their child is going to own wallstreet at this rate, I manifest it♥️
I've been juggling between getting my PhD or going to work right after undergrad. I think getting the extra education would have a tremendous benefit in my field.
Great example of the two roads at the beginning. I use that in my econ classes as well. Enjoyed watching!
This covid virus has caused us all a huge opportunity cost! I'm sure we all wish this had never happened even those getting paid at home!
COVID-19 has actually improved my life and I wish I could say the same for most people. I used to spend around $300/month commuting to San Francisco for work, but since I work from home now with the same hours and pay, I now save that money by not commuting, I get to wake up 2 hours later which allows me to spend more time playing video games at night, and I use the time I would have spent by commuting back home by going mountain biking or road cycling.
Back in February and March, I took advantage of the empty roads and parking lots to learn how to ride my motorcycle better without worrying about cars.
But again, I am spending much more time and money on my hobbies than I am saving by not commuting.
Events don't cause opportunity costs. Opportunity cost is foregoing one thing in the pursuit of another. You control the outcome of the choice.
So covid cant cost you to have an opportunity cost. The opportunity cost could be:
After being furloughed, you forego the unemployment benefits because you decided to find another job. Giving up unemployment short term in order have a job long term.
Nope, not me 😜
@@richiea7969 I don't know if it's only my state, but the unemployment pay was ridiculously good during the last 5 months.
My girlfriend was making about 4 times what she made before the pandemic hit. That's on top of a 11k check.
My friend made $1,348.46 a week... *a week* and she also got a check for over $10,000.
I almost quit my job to sign up for unemployment.
"Opportunity Costs" is the single most important thing I learned in economics. It reverberates across all decisions I make, and effects the outcome of everything. Thank you for bringing this up!! Excellent video, as always.
I used to think about this a ton, but I started investing more and it helped me get over the anxiety of it all. Opportunity cost when you sleep vs. Side hustle.
yes, sleep is a total waste
The subtleties in this video was amazing!!! From the joke at the beginning to the inclusion of a gay couple. I love this show, educational, fun, and inclusive.
Very nice topic you covered....A year ago i rented a flat for 130 dollars here in my country India with my family but i have to pay for my drinking water..For every day use they providing very less water and the biggest problem is the pollution OMG not a single plant or tree around i have mild asthma and i am spending 30 dollars on my doctors fees and meds for 3 months and my 6 month old niece living with us she to has some cough here and there so i moved out of there and found a nice small flat in a VIP area with tons of woods around clean air,clean and free water but its a small and a little expensive home from previous one. but we can manage it...The best thing that our heath is good now...its for 180 dollars rent but fro 50 dollars more we have clean air,safe secure area,hospitals are near free water less electricity cost lest internet cost with fast speed 24 hours of water....so for me its a wins and now my niece is 1 years old and happy...😀
Answer: my favourite economic concept!
1:52: Ah, you forgot the simple solution: "Schrodinger's 'Stache"
It's amazing to see such detailed representations of opportunity cost in discussion! I'd love to see more videos on this :)
To add:
5:19 That is called "psychic benefit"
"Ted and his boyfriend" - queer representation? Right in front of my salad?! Y'all just made my day.
Ted's boyfriend has a bad haircut looking at the silhouette .__.
I NEEDED THIS VIDEO!!!! I knew what opportunity cost was roughly, enough for me to drop out of college, but I didn't know any vocabulary or details. Thank you!!!!
I have always known about opportunity costs, but this explaination was something else. The dilemma of having to choose between financial benefits and costs against those experiences that cannot be put up in a balance sheet is real. But, I think, most times, it's always good to just go ahead with the experience. You always end up learning something new whether or not your decision was correct.
These are the main reasons why decision making is extremely hard. There's a lot to consider (money, time, experience, stress level, etc) and then when you finally make up your mind, you'd think you should've gone the other way.. :(
Very good vid, thank you. My personal experience is most dont think this way. Only thing missing from the vid, which I'm sure your aware of but probably left out due to simplicity is the opportunity cost of putting the money in an asset like stocks, which compound over time. So that bright shiny car that you want vs needs doesn't actually cost you 50k its 100k over a 10yrs period.
4:30 Papa Musk already thought about that opportunity cost
That's why he building more gigafactories to specialize
That Texas factory will focus on Tesla Semi and Cybertruck
Hmm Conservative politicians will have you believe that those factories were made because of California’s Democratic Government. Maybe Elon was playing 4D chess and trying to strong arm the Californian companies to give him an even better deal for his factories there? No, must be politics. (Sarcasm).
Being a sought after caterer in New York City threw me into this quandary. Skilled caterers with a few good companies can work at will. I could go 3 weeks without a day off if I wanted. Often I worked 7 days a week with 2 doubles that week. I knew some people who would work a few weeks worth of doubles and would consider a single 5-hour shift a day off. Someone would ask me if I wanted to go to a movie with them. I'd think, if I gave up my work that day, that movie would cost me $120.
Then, one day, we were talking about one of the older catering captains (late 40s which was old at the time). Someone claimed he had a few 100 thousand dollars stuffed under his mattress. He rarely took days off. Never went anywhere or did anything. He had never been on a vacation. So I decided, sure I want to make money, but I couldn't think about the movie costing me $120. Otherwise I'd never go anywhere or do anything with my friends.
Def agree that each decision we make can reflect our budgeting. I really love how you explain everything. Can you please make a video or information regarding creating business vs nonprofit. Thank you!
This is one of the most useful concepts I learned in college, and it also makes chasing a major very difficult.
thanks for the great content
I heard that The Road Not Taken was basically the poet saying he realized both paths were virtually the same, but that in the future he'll be saying how he took the better one, even though he can't tell and was actually full of regret/"what ifs" for the other path.
Which is oddly (or perhaps, by design) appropriate for this video!
www.theparisreview.org/blog/2015/09/11/the-most-misread-poem-in-america/
It’s a short poem but that’s absolutely what it says!
This is how it was taught in one of my American Lit classes! Basically either path would have “made all the difference” because that’s what choices inevitably do
I try to think of that whenever I'm in the slowest checkout line at the grocery store, or the slowest lane in traffic, etc. I try to tell myself, "Alright, this line seems like the slowest now, but if you'd gotten into that other one, it would have been even slower (even though it's cooking without you in it) - so this really is the best you could have done." Is that what he meant?
Is there such a thing as an "opportunity benefit"? E.g., maybe you choose the long commute and you gain so much driving experience and joy out of it you later change your career and become a very successful uber or truck driver? Or, you go to the concert and there's a workplace shooting later that night and you miss out on that.
A My Chem romance reference and diversity while learning financial skills through an engaging and convenient platform..... Two cents is hands down my favourite RUclips channel. You guys rock!!
I love the sly, "Why, got something better to do?".
What a funny and low key lead in!
You guys deserve more subs. You make videos witch actually helps people
Great summary of an economic concept that I took in Economics. Watching you was an opportunity , now was this a fork in my road for
knowledge?
When My Friends Ask me to go to a bar or club and tell me to do that instead of working and I say I can't afford it and then they say you don't have to spend any money, but then I say yes but I'm missing out on money so in effect it might cost me a hundred or $200 that's opportunity cost
Your friends lied to you. You're definitely spending money at a bar or club.
@@themaestro9527 Not always true, I've been to a bar plenty of times and spent $0, only cost being opportunity cost, gas expense is also $0 at times if i don't drive
Hello Two Cents,
I love your show and as someone recently graduated from college it has been really helpful from the start.
I just had a thing which I notice often when watching the videos so I would like to share that, hopefully it will help people like me who watch the channel. I know it's a PBS show and hence a main focus would be america, but I'm sure a lot of people who watch this channel (me included) are not from there and a lot of information in this channel does not apply outside US
It would be great if you could increase more general topic videos which can be applicable more globally
I hope this comment reaches you guys and thank you for the nice videos
You have no idea how much I needed to hear that bit at the end about an ocean of choices. That's me in a nutshell, constant second-guessing.
Best opportunity cost for me was when i decided to buy a $2000 macbook pro or upgrade ssd and ram on my old laptop for $60. I took the latter path and never been happier.
Great programming, as always!
I do love your chanel. Every American should watch your vids.....
4:34
Elon Musk making an appearance on Two Cents
Me: **NICEEE**
I just learned that cost of enjoying life is called opportunity cost. Great video! I agree with the video there is no cost for life experience. Enjoy life at least once!.
This is nice I have to weigh my decision always before making any financial spending. I made wrong choices which left me now for about 4 month without salary. But thank God am still alive to learn. Thanks from Nigeria
2:40 Ted and his boyfriend. That made me smile. Thank you for the representation, two cents
Clifford Collins this puts a smile in my face
I missed seeing Prince perform live a few years before he passed to study for an exam..... I aced the exam. I never got to see Prince. I regret that decision to this day. Sometimes you got to live a little.
Delusional community
@@TheGamingAlong Literally.
@@Alvin_1914 If not live can always try get his live events on media to watch at home and think u at event as if u went at time, just a thought.
Bless this show
“You and your wallet can’t be at 2 places at the same time” - every married couple would disagree 😂
I have spent my whole life miserable by keep calculating the opportunity cost after taking a different decision and thinking what would have been if I would have taken another route from marriage to financial decisions. Every decision costed me so much in opportunity cost in terms of happiness and finances that makes me sad and ultimately makes me to under perform. I guess others too would have felt the same
Thank you for the warning at the end. This sort of thinking has kept me up at night for years and don't want others going through that. Sometimes, just living life is good enough without stressing over every decision.
You guys are awesome. You explained this concept so well and covered so much in a very short video.
Vic should’ve applied the concept of sunk cost. If the concert experience wasn’t that great then he should’ve left and use his time for something that would give him more utilityI instead of staying because he paid for the ticket.
I just learned these concepts in a class of macroeconomics.
It's always funny to look at the person not speaking when they're both on screen
Great timing! I started an economics course this week!
How the world has made us meet once again. Right now, I am learning about opportunity cost in Economics and we just finished "Road not Taken" by Robert Frost in English Literature.
Economics is about counting costs, and the cost to be counted is “opportunity cost,” arguably the most basic concept in economics. It is defined as the next best alternative to the one chosen, in other words, as the best of the sacrificed alternatives.
Thank you so much the amazing explanation!
Thanks so much for this video!! I'm a 43(F). I'm going to college for psychology and sexual science. I've been at a community college for a couple of years. which I pay for myself. No loans, but it's going to take longer to graduate and go to my 4 year school. I just went back to my 2 customer service jobs.
Its now science the sex to? As generation pass we become more dumer
Do you recommend any books on opportunity costs or behavioral economics? I’m interested in reading more about financial decision making.
Great video!!!!! But I think its high time we all know that for trade to be successful depends on the capability of your broker and the willingness to invest what can yield a meaningful profit.
Don't see bitcoin investment as a risk,in every success there is always a risk,the ability for you to take those risk makes you successful.
The rich see economic crisis as the perfect time to invest,I believe now is the best time to invest,don't just sit back...I will advice people start a carrier in crypto today.
As a beginner trader you will like to take the opportunity to earn a lot of money and off course get a professional broker
Appreciate the info was actually looking for something like this...
Lol...many love crypto and the only way people make money in crypto is by taking money from other people and investing in crypto
Thank you so much this video help me see the problem in my life
spreadsheets excel when it comes to quickly calculating opportunity costs.
puns aside, I recently got a job that intuitively didn't make sense, by running the numbers, I discovered that an hour commute to a 48 hour shift, with 4 days off, actually reduces my commute time and miles compared to a half hour daily commute. The biggest (for me) intangible benefit is having 96 hours in a row where I don't have to go into work.
For any curious, the job is as an Ambulance driver (not a medic) and from what I've been hearing, a lot of ambulance services are hiring drivers because it allows the medics to be more evenly distributed, so if you need a job and know anyone in EMS ask if they're hiring.
Your videos are fantastic and a source of help that is constructive towards others and effective.
I absolutely love this channel. These videos truly speak to me!
I made some decisions based on the scenarios presented-1st-how much have I made for the week already will determine if I go to the concert or catch the next one(almost always another one). Can I compromise and just work half the shift and get coverage or ask off for the other half?(option?) Are they even good seats? 2) Try to sell the vintage wine first (personal decision I would just rather have the money). I can always drink it with someone if it doesn't sell-satisfying win-win for me. Would make for a great surprise for someone special! 3) Life is short! Give me my time back so I can maintain my sanity! Opportunity vs Sanity, but if the savings to commute is significant meaning $200 a month and up for me-More time than money! Lolol! No problem making these decisions. That's my 2 cents! Great video!
I appreciate that you didn't over-emphasize considering opportunity cost
Thank You so much
This is honestly what I feel like when choosing which few social media platform is best for my business
Top notch!
I like the animated backgrounds. Thanks God it finally come back.
Great video. I think the biggest mistake people make in general is not considering the opportunity cost of capital.
I found that one way to stop spending excessive amount of time browsing social media is to keep reminding yourself of the more useful and fun activities your could do instead.
I think the biggest crime here is 10$ for a single cup a beer.
Only thing I heard was don't skip jobs for concerts. Which is very sound advise. Be fiscally responsible and the YOLO life is not for normal people, only millionaires
Cheers to you for representing Ted and his boyfriend so casually. It may seem like no big deal to you or many others, but more and more casual representation in this manner is what creates equality in society's mind, little by little. Cheers!
Opportunity cost & sunk cost are things that i learned here better than school
Well done on your well balanced approach in describing the topic.
I know opportunities come and come, so I prefer to thinking it very well, even if it last longer to me, than waste money.
I love how honest and objective your financial advices are. Thanks!
Knowing which opportunities to take
*And*
Which opportunities not to take is an important skill in business 💯💯
Yeah, one of my friends overthinks pretty much all her decicions, to the point she misses out on events because she can't decide which one to go to. And not just expensive ones, but stuff like a free language cafe at library versus choir practice.
What kind of job experience are you going to get without a college degree? Retail.
I don't buy the wine example, because that's a windfall. There has to be some consideration of that.
Not really. If you don't manage a windfall responsibly, that just means you will quickly be back to where you started, rather than having advanced your position in life. Just because you happened to stumble upon something worth money doesn't mean that money couldn't be put to better use. Every single lottery winner receives their money through a windfall, but that doesn't mean anything when it comes to how best to manage their finances, and failure to do so is why so many end up broke.
The thing I don't like about the example is that there would be a non-financial cost to sell the wine. Finding a wine buyer and getting them to pay a good price for a singular bottle of wine from someone who walked in off the street is not going to be easy. I'm not sure the effort to liquidate the bottle of wine would have been worth $100.
Doesn't matter. It might not have cost you anything to acquire the wine but drinking it is choosing to forgo whatever you could have earned by selling it.
@@BTrain-is8ch Yeah, but I just have trouble labeling that a "cost". If I were on Cash Cab, for example, I would always, always, always go for the double-or-nothing, because I'm betting with house money.
Thank you for all you do! You guys are the best!
Great truth: life is full of such situations
You & your small buddy are the cutest ❤️