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Monday, May 13, 2019

Cost VS Benifit theory: Helping you take right decision


Have you ever been told not to expect a return for everything you do?


They were probably wrong not telling you that you deserve it. You have to make sure the return over-weighs what you've paid off for it.
Yes! the benefit has to oppress the cost.

Must be wondering I'm being selfishly mean here? Trust me, I'm not! 

I'm not suggesting to expect a materialistic reward every time but you have to get at least 'something' in return. That 'something' could be satisfaction, lesson, value, impact, reinforcement, experience, someone's smile, acknowledgement or appraisal while cost isn't always monetary or direct everytime. It is also the time you're investing, the calories you're burning, fatigue being bore, stress you're resisting, effort being put in etc. If you're not being rewarded by any of the benefits then you're probably doing the wrong thing. 

Let's put all the variables in the equation and think of any dilemma. Try using this theory. Costs on the one side with benefits on the other. Reward side has to be heavier.


No matter whether you're being indecisive about breaking up with someone or investing your time in something, my theory will help you take the best rational decision. Emotional biases lead to wrong decisions which is a hard pill to swallow. Hence, calculate the best outcomes for yourself using my theory for an effective and sensible decision. You're not doing it for free. If it has a cost, get yourself rewarded with a return (doesn't have to be monetary every time). Otherwise, move on to the next best option and evaluate again.

Your questions and negative comments will be appreciated more than positive feedback. This theory will definitely help you at some stage if you are able to understand it.

2 comments:

  1. Your theory is contradicting your own thoughts , at one time you are saying that you should always expect a return against your investment(time, energy ,effort). The very next moments you are comparing returns with a smile, lesson,experience). Okay now my point is that these all variables that you have assigned to the Returns actually have no existence in today's world. They might have an infinite value for someone but for someone else this isnot sufficient to balance the equation.

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  2. First of all, I really appreciate your sincere feedback Rehan.

    I stick to my point of always expecting a return against your inputs. Now that return may vary according to person as well as situation. Indeed, I considered smile, lesson, experience etc as a non-monetary return and they do carry value for people. For some it may be high, for some value of non-monetary/ non-material rewards might be lower. That is why I have this simple rationale theory of putting all the variables into the Cost-Benefit equation to take your decision. If benefits side is higher go for it regardless of what particularly your benefits side contain. For some it might be something intangible and non monetary like smile, lesson, appreciation etc while for some it could be money, bonus, medal or anything similar. You just have to pick your variables making sure that benefits side overweighs whatever you've sacrificed for it (costs).

    Hope my answer helps.

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