“Opportunity Cost” is an economic concept. It is defined as, “the loss of potential gain from other alternatives when one alternative is chosen.” In other words, if I decide to spend 20 minutes writing this blog entry, I have lost any benefit I could have enjoyed from spending that 20 minutes doing something else. This applies to work, too. If I spend the next year working in a particular job, what benefits have I lost by not doing something else?
That’s a question I have been asking myself a lot lately, after spending nearly two years working as a consultant for a family-owned HR Organizational Development consultancy. In that time, I have learned a lot (usually by metaphorically stubbing my toes and learning not to repeat that mistake!) and have worked with some very talented and committed people. Still, the question of opportunity cost has bubbled up in my mind frequently and I have repeated asked myself whether I am growing, or just learning.
Another economic concept is “sunk cost”. It is defined as, “a cost that has already been incurred and cannot be recovered.” In behavioral economics, people often make irrational decisions because they have already invested so much time, money, or other resources. In my case, that would be the part of my mind that kept thinking, “I’ve already invested almost two years to this job; I should keep at it a while longer.”
Ultimately, I decided to quit. I’ve been working for nearly 30 years and know myself pretty well. I know my strengths, my weaknesses, my motivations, and my aversions. So when two opportunities came along through my network, I recognized quickly that either opportunity would better match with who I am while allowing me to continue growing.
The decision to quit was not easy, but as I recall from one Freakonomics podcast called The Upside of Quitting, we have to recognize when something is not right for us and be able to face it squarely, own up to it, end it, and then move on. As I look at my life, I’ve had examples where I’ve been able to do this well (I attended three schools and majors en route to my bachelor’s degree) and examples where I’ve struggled on at something that wasn’t worth struggling on with (my second boyfriend).
On Friday, I gave my notice. It was a nearly two-month notice to allow sufficient time to transition all my projects and clients smoothly. Over the weekend, I’ve realized that for the first time in nearly a year, I feel very unburdened. This reinforces to me that I’ve made the right decision.
In the coming weeks and months I will share more about the new job. I anticipate it will give me time to resume blogging, which is another good sign.
christao408 
Wow! I have mulled over the question whether to quit many times before. In the end, the fact that I need to earn money and had no backup plan, made me keep going.
It will be interesting to hear/read what you are doing next. And btw, good to see you blogging again.
Well, I didn’t leave until I had a signed offer letter from another company, so not exactly a radical plan.
Awesome Chris! I guess one of the oppty costs was the lack of blogging and videos. 😉 Career change is one of the things on my mind a lot lately.
Yes, I know you’ve been thinking about it. Maybe I’m paving the way for you to feel more comfortable about making the change?
I’m feeling a bit less stressed about change. I guess I’m used to a steady income. But I just have this fear (J thinks it’s irrational) of being poor when I reach my retirement age.
But at the same time I know change can both be scary and good. It’s not something I should fear. I read somewhere that we have two lives. The second one starts when we realize we only have one.
It you are poor during your retirement age, you’ll just move to Thailand.
Maybe it’s about time to stepback and take a brief hiatus from it all. Write a book about expat life…or even collaborate with someone on a cullinary project maybe? So many other possibilities indeed!
Oh, I wish I could afford a hiatus.
Best wishes on your new endeavor, Chris!
Many thanks!
Really Important decisions are rarely easy to make…but after you weigh all the options, and do what is truly best for you and your loved ones…there is nothing like knowing you are on the right road!!! I look forward to hearing more about your next venture AND seeing an upsurge in blogging!!!!
Thanks Ruth. I’m confident it is the right direction and look forward to more blogging!
Best wishes! One of the best things I’ve done in life was leaving a job I disliked. Glad to hear you may be blogging more again! 🙂
Many thanks!
that’s been on my mind too! looks like i’ll have a similar post to make at some point
I look forward to hearing about it.
First of all – congratulations on taking the leap!
Second – it warms my heart to find a blogger in Thailand going over things like opportunity costs and sunk costs (I assume this is the first time that sentence was ever typed out, ever). Yes, it’s a lifestyle destination, but I feel there’s a severe shortage of more ‘serious’, business-focused blogs in the country. I like food and I like beaches, but in the end, I love numbers :). So thanks for writing about this as well!
Do you know of any other bloggers who cover the more ‘professional’ side of life in Bangkok or Thailand?
Interesting question. I’m sure there are several of them, but couldn’t tell you who they are!