The opportunity cost of time

The opportunity cost isn’t just about money; it's about time and focus

We’re all in the same boat these days, aren’t we? Every time you pick up your phone or turn on the TV, there’s another news alert, another WhatsApp group buzzing, another influencer telling you what’s going on in the world. It feels like information is coming at you from every angle, trying to grab your attention. But here’s the thing: all this noise comes with a hidden cost — and it’s not just about money. It’s the cost of your time.

Think about it for a second: how many times have you spent valuable time reading or watching things that don’t really matter to your life, your goals, or your future? Sure, there’s breaking news about market crashes, political tensions, or viral trends. But the question is — does any of that really help you in the long run?

Here’s a simple example: You’ve invested in mutual funds because you want professionals to manage your money. You trust them to keep an eye on the market, make the right decisions, and customize your portfolio to meet your goals and risk appetite. So, why waste your time reading about every piece of news or worrying about things that are out of your control?

Let’s break it down:

When you spend your time consuming all this information, you're giving up time you could spend on things that actually do matter. You could be building your career, spending time with your family, or just enjoying life. Instead, you’re spending it stressing over global news and updates that might not even affect your financial situation.

Take a look at this recent example:

In 2024, when the tensions between Israel and Iran started making headlines, the market saw some immediate volatility. News outlets were all over it, and if you weren’t careful, you could’ve found yourself reacting emotionally to the situation. But here’s where your mutual fund manager come in — they’re the ones analyzing all of this for you. They’re already factoring in these risks and making adjustments to your portfolio.

Instead of worrying about every headline, your manager is ensuring your portfolio is still on track to meet your financial goals. So, why spend your time on things that are beyond your control?

Here’s an example of how your mutual fund manager might act:

The point is, you can’t control these events, but your fund manager can react and adjust the portfolio — and they’re already working to ensure your investments continue to grow in line with your goals.

So, why does this matter? Time is the one thing you can’t get back. If you’re spending your precious minutes stressing about things that don’t directly impact your long-term goals, that’s an opportunity cost. Time that could be spent focusing on your business, your family, or just living with peace of mind.

Roman philosopher Seneca once said: “How many have squandered their lives in idle pursuits? How much time has been lost to unnecessary distractions?” This couldn’t be more relevant today. We waste so much time worrying about things outside our control instead of focusing on what really matters.

Here’s how to stop wasting time:

1. Trust the professionals: Your mutual fund manager is there for a reason. They are handling the market noise, so you don’t have to. Trust that they’ve got things covered.

2. Stop scrolling endlessly: Every time you feel like diving into a news article or scrolling through social media, ask yourself, Is this going to help me achieve my goals? If not, move on.

3. Master your emotions: You can’t control everything that happens in the world, but you can control how you respond. Don’t let market dips or political events shake you up — stay focused on your plan.

Here’s a quick example: Imagine you’ve set a goal to retire with a comfortable corpus by the time you’re 60. Instead of getting distracted by the latest headline about market volatility, you trust that your mutual fund manager is ensuring your investments are on track. When the market goes through its ups and downs, you don’t need to panic — you’ve already made a plan, and you’re sticking to it.

The Bottom Line: Protect Your Time

Time is precious. Every second you spend worrying about things outside your control is a second you can never get back. Instead of stressing over every piece of news or market update, let your investments work for you. Trust the professionals, focus on your goals, and let go of the noise.

As we head into 2025, remember: your time is the most valuable resource you have. Spend it wisely — and let your investment portfolio do its job, while you live your life.

Warm regards,

Tejas Lakhani
Chartered Accountant

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