Opportunity cost is an underused tool to help us reflect on how we use time. Almost every moment of our waking lives we make choices that involve opportunity costs. If you decide for example that you do not want to exercise, what exactly are you doing instead? Simply reflecting on the opportunity cost can help you make better choices.
Examples of Opportunity Cost
If you have 12 hours at your disposal during the day, you could spend these hours in work or leisure. The opportunity cost of spending all day watching TV, is that you are not able to do any study during the day.
This shows a trade off between working and hours spent in leisure. If you enjoy 2 hours more leisure, the opportunity cost is 2 hours lost for studying.