Opportunity Cost

A prior post was about sunk costs. They deal with the past.

We should also be aware of opportunity costs. They deal with the future.

In microeconomic theory, the opportunity cost is the loss of value or benefit that would be incurred (the cost) by engaging in an activity or choosing an option, versus/relative to engaging in the alternative activity or choosing the alternative option that would offer the highest return in value or benefit.

Put more simply, when you decide to do something, be aware of all the other things you won’t be able to do as a result of your choice. That’s opportunity cost.

We can apply this to making art.

If you decide to do a passion project and go all in, realize all the other things you’re giving up. Things you won’t be doing as a result of your decision. Don’t let that paralyze you. Just be aware. If after bringing awareness to this fact, you still feel that engaging in this project will bring you more value (I don’t mean monetarily, although that could be part of it. But really personal value, artistic value, psychological value, etc… ) than doing any of those other things, (or not doing anything at all) then it’s worth it. Go for it. Feel great about your choice.

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