The 3 Components In Evaluating True Cost.
Evaluating cost is a necessary step to unleashing your unlimited growth potential. Most people look at cost in a one dimensional term. Money. They see cost simply in terms of how much money it costs them to do something. They neglect looking at other areas it can cost them in. Many times people waste money and time overall by trying to simply save money. Evaluating cost is important because it means you can maximize your resources in the best way possible. The are 3 types of costs you want to keep in mind. They are your financial costs, your time costs, and your mental cost.
What Is The True Cost?
I’ve known countless people who seem to think the true cost of something was simply how much money they spent on it. Many members in my own family are notorious about this. I remember growing up having to do extremely inconvenient things because my family thought it would save money. I always thought to myself, “What’s the actual cost of doing all of this?” If you have to waste obscene amounts of time just to do something with added frustration then the cost is extremely high. Especially if you have to deal with the problem again and again.
1. Financial Cost.
Something we can all relate to is having something break down. Having to repair or fix things is something that happens to everyone. Should you use cheaper parts to save 20% in cost but have the parts break meaning you not only have to buy more parts but you also have to deal with the time and frustration in doing the task again? Is it really worth it just to save a few dollars? You’ll never become wealthy with this approach because you don’t value your time enough. It’s worth spending $120 on parts instead of $100 to ensure you get quality and don’t have to do it again. If you really want to take it to the next level hire someone to do it for you because in reality you’re paying someone a low pay to free your time to do something else. This is the essence of absent productivity. You need to think rich if you want to manage your money wisely. The Millionaire Fastlane talks about this extensively.
2. Time Cost.
You can also consider hiring somebody or contracting out to save a lot of time. Learning new skills and doing things yourself can definitely be useful. That said if it consumes too much time then it would be better to allow a professional to do it. This is especially important in business when you have so much to do and wasting too much time can cut into you doing things that will actually lead to you making more money in terms of growth. I’ve had to subcontract out many things otherwise it would have simply taken me too long to get to doing them. The fact that I could avoid the hassle of dealing with the things was definitely an added bonus. Less stress and more productivity is the way to go.
Sometimes doing a bit of research and investing some time can save you a lot of money and hassle. I remember when I needed some work done on my truck because I had an O-ring oil leak. The dealer tried to charge me over a thousand dollars for a completely new part. I went online and found a simple O-ring for about $3 and I installed it myself. This saved me a lot of downtime and a tremendous amount of money for something that took me some very quick research to do. Don’t count on others to do your due diligence for you. You do your own due diligence for a reason. In some cases taking time to do things yourself is worth it. Just be sure you pick and choose the right times.
3. Mental Cost.
You should also keep in mind the expense and cost of frustration and mental anguish. In the parts example above if you have used crappy parts the frustration of constant failures and inconvenience can wear you down. If your car isn’t fixed properly and you need it for work and then it breaks down due to neglect or trying to do a cheap fix it will cause great frustration. For your mental health it’s best to avoid this cost as well as being in a clear mind is an important aspect of life. This is also an added burden because it takes your concentration and focus away from other things and makes you less productive in those areas. This is something you want to avoid.
Budget all of your costs.
As a person trying to unleash your unlimited growth potential you want to keep all of these costs in mind. Your aim should be to balance them out whenever your engage in something. Neglecting one of these things can have serious consequences down the road. The road to wealth is to value your time as it is limited and money is a means to give you more time. The more free time you have, the happier you can make yourself be and fulfill your life. Don’t simply look at things in terms of dollars, look at them in terms of the total and complete cost it can have on your life. Doing this brings you one step closer to transcending.
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