“How do you get unstuck when you have a negative mindset that can’t value delayed gratification versus the immediate? For example, why is it so hard to give up a convenient food option that may cost more in the end when a cook-at-home option is always left in the fridge to rot?”

This topic was requested by one of my Instagram followers – thank you! It refers to the concepts of opportunity cost and tradeoffs.

In economics, opportunity cost is equal to the potential benefit lost by choosing one option over another. Opportunity cost is the value of what could have been.

Most people go through life making decisions out of habit rather than making intentional tradeoffs.

Try this exercise:

1. Log onto your bank account.
2. Download your transactions for the past 30 days.
3. Search for all of the restaurants, takeout, coffee runs, etc.
4. Calculate the total. How much is eating out as a percentage of your total income? How many hours did you have to work to earn that money? Is it what you expected?

Don’t stop there. Stopping at this point makes it hard to give up a bad spending habit, because we aren’t envisioning an alternative use for this money that inspires us to change our behavior.

Go one step further – 5. What is the opportunity cost associated with eating out? In other words, what are you trading or giving up?

Let’s say you’re spending an average of $30/day on eating out. If you multiply this by 365 days, that equals $10,800. What could you do with an extra $10,800? Is this a nice vacation for your family? Does this pay for your child’s school tuition?

Now consider alternatives that compound. Is this a paid-off credit card? Or money that could have been invested? In those cases, not only are you giving up the original $10,800, but also the additional interest charged or dividends that could have been earned.

Using simple interest, a credit card charging 20% would cost an extra $2,160 above the $10,800 for a total opportunity cost of $12,960 for a year. Not to mention the stress of having a credit card payment eat into your salary every month.

Pick something that you actually want to use that money for today, that will make you think twice before returning to your old behaviors.

We have to learn to make invisible costs visible. Only then can we make thoughtful trades with how we use our time, effort, and money.

If you are ready for change in 2026, visit MakingMoneyIsSimple.com to get started on your financial transformation today.