Cost, Investment, and Affordability

In all matters of life involving investments — whether it’s a new home, a new car, a coach, hiring an assistant — its easy to get caught up in the particulars of costs and whether you can “afford” the investment.

Here are a few things to keep in mind about costs and investments in products and services:

(1) Investment is Not Only Financial

Theres a difference between cost and investment. Investment is not just about how much money you pay.

What we want also requires investments of energy, time, emotion, manpower, attention, or other resources.

When you consider investments, consider all investment.

(2) Investment Isn’t Only Additive

We often think of “investment” as an additive: something you put into the process. Time. Money. Energy. Attention. Resources.

We can also think of investment as a “subtractive” element.

Just as important as what you are willing to put into the process of getting what you want is what you are willing to give up to get what you want.

Old patterns or habits
Expectations
Your current way of living or being
Control over a part of the process

(3) Affordability is Different From Willingness to Invest

The issue of affordability is separate from the issue of willingness to invest.

Sometimes it is true that you cannot afford the cost of what you want.

But often people say “I can’t afford it” when what they really mean is “I’m not willing to invest in that” or “I’m not willing to give up what I must give up.”

Whenever you find yourself in a mindset of “I can’t afford it” regarding something you want, it’s good practice to check in with yourself. Are you really just avoiding the truth regarding what you’re willing to invest or give up?

It’s good practice to consider what you’re willing to invest and what you can afford before you even look at costs.