Perspective, Time & Money – Finger Financial Five #155

“Your perspective will either become your prison or your passport.” – Steven Furtick

Have you ever listened to someone, and they gave you an insight that you didn’t think of before? Not totally the opposite, but just a different angle.

Sometimes that little tweak can make all the difference. 

Paul Saunders, our Associate Advisor at Riverbend Wealth Management, had some ideas that I thought warranted sharing.  

Money, Time, and Opportunity Cost – by Paul Saunders

This life is an ever-evolving classroom. The journey itself is a teacher that gives its lessons through our experiences, challenges, and triumphs. 

As we head towards the end of the year, I enjoy reflecting on the wisdom I’ve come across, and I really enjoy planning how best to implement those lessons into my own life.

The lesson I’ve pondered about a lot recently is the concept of opportunity cost. In finance, this is defined as: The loss of potential gain from other alternatives when one alternative is chosen. 

When we spend or invest, this isn’t just a single choice. It’s actually a series of hundreds of choices combined into one single final decision. What do I mean by that?

That single decision actually means we are simultaneously deciding NOT to do hundreds of other things. Tying up money in one investment is deciding that this is the best possible use of the money. Therefore, we are also simultaneously deciding that all other possible options are less optimal than the one we chose. 

When considering all the possible options, this one choice becomes less straightforward. How can we accurately know if a single choice is the best out of hundreds of other choices? The simple answer is that we don’t know for sure, so we make educated guesses. Most people stick to what they know, or they diversify to try to avoid making the wrong choices, which is generally wise. 

Let’s take it a step further though. Money decisions are massively important, but opportunity cost also applies to how we spend our time. 

Time is a finite resource that is even more valuable than money. Because, unlike money, we can’t get more of it. A day spent is a day that we will never get back. Each moment is inherently valuable. Priceless even. 

Like money, when we decide to spend our time one way, we are essentially saying ‘no’ to a multitude of other possibilities. Every choice we make with our time is an investment. And just like investing money, we want to make wise choices, because the outcome of each choice can be positive or negative.

Spending time thoughtfully is a gift to ourselves and our loved ones.

Of course, we don’t have to analyze every minute and every dollar. The point is to put a little extra focus into the big decisions in life and remind ourselves to optimize them as best as possible. 

How many of us have felt the feeling of losing a loved one, and wished we could have one more conversation with them? 

That my friends, is opportunity cost embodied in our lives. If you’ve felt that way before, then you know that being with loved ones is one of the best ways to spend our time.

So join me this new year in spending some extra time thinking about the big decisions in life. Living in a certain area. Working on passion projects. Volunteering. Being out in nature. Imparting our wisdom onto others. Giving a family member a hand up. Or making that overdue phone call to an old friend. We all have areas of life that deserve some reflection. 

At the end of the day, being mindful of this topic can add to our happiness and fulfillment, AND it can even improve the happiness of others!

Here’s to cherishing the moment! Happy Holidays everyone!

Good work Paul!

I was on South Caroliana Public Radio talking about how wealthy families can use a virtual family office to help with tax planning, charitable giving, estate protection, and asset transfer. CLICK HERE to listen to the five-minute interview. 

On the lighter side, we have the Riverbend holiday party this week. It is always good to see everyone outside the office and get to know their spouses. 

I went fly fishing in Mount Pleasant this past weekend. Had a blast. Always good to get on the water in the Lowcountry. 

Elliott comes home for three weeks on the 15th. We can’t wait!

Hope all is well with you and your family,


Finger Financial Five – 5 points in 5 minutes or less – is intended to provide you with a weekly shot of useful financial information.  My intention is to share principles so that you will have more clarity, more peace, and make better financial decisions. 

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors, LLC and Riverbend Wealth Management are separate entities. This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.


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