Thinking Like a Billionaire
Through opportunity cost. And framework on how to achieve development goals with intentional learning.
Growth Mindset Ideas
Thinking like a billionaire
Opportunity cost is the value of the next-best alternative when a decision is made; and what’s given up.
In simple terms, Opportunity Cost is what you give up for what you gain.
And to think like a billionaire,
Economic Profit = Revenue – Opportunity Cost
Let's see some real-life decisions of opportunity cost that everyone makes,
Choosing to work overtime: If you decide to work overtime at your job, you will earn extra money, but you will also be sacrificing your free time that could have been spent with family and friends or pursuing hobbies. Money Vs Your whole being
Spending money on your Education: If you choose to attend college, you will gain valuable skills and knowledge, but you will also be sacrificing the income you could have earned by working. Knowledge, skills Vs Money
Buying a car: If you buy a car, you will have the convenience of transportation, but you will also be sacrificing the money that could have been used for investments, learning new things. Liability Vs Assets
Starting a business: If you start your own business, you have the potential to earn a increase income, but you will also be risking the time and money you have now in the process. Now Vs Future
Vacations: If you choose to go on a vacation, you will have a great experience and create memories, but you will also be sacrificing the money that could have been saved or invested. Enriching life with experiences, memories vs Money
We can’t have everything we want in life. Our unlimited wants are confronted by a limited supply of goods, services, time, money and opportunities. What matters is whether the decision comes from scarcity or opportunity mindset.
Life lessons that you can’t afford to ignore
3X3X3 Learning: Effective strategy to learn, grow, and achieve performance goals
Three key elements in achieving goals are,
1. Clearly defined goal
2. Clearly defined period by which goal to be achieved
3. Clearly defined people who can support and track progress of the goal
Three Goals - Not more than 3 goals at a time. Developing habits on fewer goals bring intentionality, actions and motivation.
Three Months - Enough to get trained on new skills, practice it, and put frameworks in place to achieve goals. Aligns with organizational setup where in quarterly goals, performance measurement
Three people - Partner with a Coach, peers, direct reports, managers, or friends to create an accountability.
Best reads from the internet
Smart learning is learning from the best around you. Curated shares from the smartest on the internet. Ideas that aligned or challenged my thinking. I hope you’ll enjoy them.
They say picture is worth a thousand words. These powerful visuals show it.
Mckinsey's strategy on growth & development: 3X3X3 approach.
Mental model that every AI investor is missing.
Intentions matter. Importance of intentions and its impact on outcomes in life.
Muse
“We lay it all down—including what others call sanity—for a few moments on waves larger than life.
We do this ‘cause we know there’s still something greater than all of us.
Something that inspires us spiritually.
We start going downhill when we stop taking risks.
~ Unknown
What’s the one bad habit that’s been hardest for you to break?