EP 43: Real Confidence- The Opportunity Cost of Confidence

We make tens of thousands of decisions every day and most of them we’re not even aware are decisions. You get in the car to drive the store and you make the unconscious decision to go the way you always go. You might think that’s a habit, but a habit is just a series of decisions that collect over time.

So we know intellectually that we’re capable of making decisions, so why do our brains freak out when we’re consciously aware that we need to make one?

It doesn’t matter if it's a business decision, which house to put an offer on or what shoes to buy, when it comes to deciding, it’s like we forget we’re smart, capable human beings.

And that’s exactly what we do. When the amygdala takes over, we forget that a) we are capable of gathering the information we need to make a confident decision and b) that no decision we make will ever come with a 100% success guarantee.

That’s where the concept of opportunity cost, which I first learned about in business school, can be a lifesaver because with every decision we make, we’re trading some things for other – time, money, skills, access, materials.

Understanding opportunity cost – and how to apply it - helps you look at your pool of resources, whatever they are, and get closer to the best possible, most confident decision, faster.

And if you think decision making, with or without applying the concept of opportunity cost, happens only in your head, think again. Your body contains a kind of second brain that also provides valuable information when your amygdala is wigging out and you don't know which way to turn.

Want to know more? Click through to listen. That’s one confident decision you can make right now.