Opportunity Cost: This One Small Mindset Shift Can Change Your Life

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Opportunity Cost: This One Small Mindset Shift Can Change Your Life

Are you interested in one small mindset change that reduces Anxiety, increases Control and Saves Money? What if I said this one thing wouldn’t take much time? Would you be interested? I think so! Here it is: Define Your Opportunity Cost.

We commit, we spend, we react, based on the moment. If we don’t have a comparison benchmark – an Opportunity Cost, then the cash flowing out simply makes sense at the time. But what if you were to stop and ask yourself “What if I did XX with the money instead?” Opportunity Cost is the cost of doing something else with the money you are about to spend. Now you have a benchmark for comparison. This helps you to determine the VALUE you get by spending the money or diverting it to XX. Here is an example.

Define Your Opportunity Cost

Let’s say you’ve been wanting to save more money and just can’t seem to do it. Defining your Opportunity Cost equation takes 2 steps:

  1. What do you dream of? What do you really want to do?
  • I really want to go to Italy. It’s about $5,000.
  1. What do things approximately cost you now?
  • $100 equals 2 dinners out at $50 each
  • $100 equals 4 pedicures

Using Your Opportunity Cost looks like this:

  • I can get 4 pedicures a month, or I can save some for Italy. It’s winter, so I don’t need as many pedicures. If I only get 2 a month, that saves $50 a month for Italy. $600 a year.
  • I spend $100 every Friday and Saturday eating out. If I decreased from 8 to 6 dinners out a month, that saves another $100 a month for Italy. $1,200 a year.
  • If I do this for twelve months, I will have $1,800 for Italy.

Benefits of Smarter Choices

  • You have an alternative for comparison. Just another meal out OR $50 for Italy.
  • It is a specific number, so you can clearly compare and measure.
  • The choice is yours – you are in control because you decide which is most valuable.
  • You reduce the anxiety in your gut about tackling another “should” in life – saving more.
  • When you see your savings grow, it is sheer motivation and reward. You’ll feel great.

One small change in your life for 2018 will give you more power over your life. Try it. I’d love to hear how it works for you.

Your Personal Money Coach


Information shown is for illustrative purposes only and is not intended as investment, legal or tax planning advice. Please consult a financial adviser, attorney or tax specialist for advice specific to your financial situation. Behavioral Cents, LLC and any third parties listed, linked to or otherwise appearing in this message are separate and unaffiliated and are not responsible for each other’s products, services or policies.

Carrie Rattle is a Master Money Coach & Founder of Behavioral Cents. She is a 30-year veteran executive of financial services. Behavioral Cents helps women achieve independence, freedom, and a bigger voice in the world. With a fatter bank account women can confidently walk away from a bad job, build a business to change the world, or live their own dreams. We work in a private, non-judgmental atmosphere with a program tailored to change your money behaviors for the better – without deprivation. Thoughts always welcome: carrierattle@behavioralcents.com.


  • Carrie Rattle

    Carrie Rattle is a North American money behavior specialist and veteran financial executive, with multi-country experience in banking, brokerage and credit card practices. During her career, Carrie witnessed heart-breaking events where women had their freedom restricted, got into heavy debt, or had to commit fraud to get out of a terrible situation. Lacking the funds to have choices and independence destroyed their lives. Carrie built Behavioral Cents to help women write happy endings to their money stories. Financial knowledge is a start but does not always guarantee success. Understanding individual money beliefs and nurturing behavior change provides a more powerful path to truly help people align their money with their life’s dreams. Learn more at http://www.behavioralcents.com/

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