Today, I want to share a secret with you….. I have a problem……

I suffer from emotional tunnel vision.

Even though it is not a diagnosable disorder, it can have disastrous consequences. When I start to pursue a goal, I can often lose sight of everything but achieving that goal. I am willing to make sacrifices, and I have a “Whatever It Takes” attitude.

The only problem with this type of tunnel vision, is that this type of living is rarely sustainable. In some ways, I think all humans suffer from this problem. We tend to vacillate between extremes, and we frequently start a goal with unrealistic vigor. New Years resolutions are a perfect example of this phenomenon.

However, I have good news! I belive there is a treatment for this disease and it is:

Learning to calculate “true cost”

True cost can mean different things depending on if you are evaluating an item or an experience. Let me explain. For an item, true cost is the amount of time, energy, and emotion that must be added to the monetary price of the item. This definition is most relevent for deciding if couponing, rebates, and made-from-scratch items are worth it. For example, is making homemade bread really cost effective considering the extra time and energy I must exert? Is it worth saving the $1 a week? We must also add in the environmental and health impact variables such as, making my own bread reduces my intake of preservatives and my carbon footprint by reducing my usage of packaging.

This definition is also helpful in evaluating how effectively we are using our time to make extra income. For example, is the thirty minutes I spent filling out surveys worth the price of the reward I will earn?

Another way to conceptualize “true cost” relates to long-term goals or experiences, such as paying cash for a house or seeking an advanced degree. For this, you must decide if the amount of pressure and loss you will have to endure, is worth the amount of gain you will receive. This is especially relevent to time sensitive goals such as getting out of debt in a year or losing weight. Often, when we try to achieve things quickly, we increase the amount of stress and sacrifice we must experience. It is imperative that we think about the effect these decisions will have on our relationships, health, and quality of life. If we go into a season of sacrifice with a full understanding of the impact, we will be better prepared to handle the challenges that come our way.

Here are some excellent resources I have found related the subject of true cost:

1) Here is a great article on moneysavingmom.com specfically about her journey to paying cash for a house. However, it provides valuable perspective for anyone trying to achieve financial goals.

2) Here is a free downloadable spreadsheet for tracking your grocery savings. If you are into spreadsheets, you will love this.

3) Here is an excellent guest post by Carolina Clipper that offers an awesome downloadable spreadsheet for calculating the cost of made-from-scratch baked goods. The practical tools section of her site also has many more great downloadable resources.

I think this is a very powerful yet often overlooked concept. If we are better able to calculate the true cost of our decisions, we will be able to invest our time, money, and energy in the most strategic and effective ways. Understanding the true cost of our choices will lead to
wiser and more informed decision-making and planning. This in turn will lead to a more balanced and healthy life.

I would love to hear your thoughts in the comment section!