← Mental Models
Mental Models · Card 3
Opportunity Cost
A rupee spent is a rupee not growing.The cost is what you gave up.
- Spent today
- Given up
- ₹10,000 on a gadget
- ₹10,000 compounding in a SIP
Every rupee spent on one thing is a rupee that can no longer grow somewhere else; the real cost of a choice is the next-best thing you gave up.
This ₹10,000
SIP
Emergency Fund
This Purchase
Choosing one closes the others.
In Practice
₹10,000 spent on a gadget today is ₹10,000 that will never sit in a SIP compounding for the next twenty years.
Generic Example
An hour spent scrolling is an hour that could have gone toward the one skill you keep meaning to learn.
Ask yourself
If I say yes to this, what am I quietly saying no to?