The best investment is to invest in yourself

Why did I read the most expensive MBA in the world?

A friend once joked, "the old road, you might have read the most expensive MBA in the world."." In fact, in terms of tuition fees, Tsinghua -MIT Global MBA this project, although not cheap, but it is definitely not the most expensive in the world.

In the past two years, I only eat in the school cafeteria, bubble library, the usual means of transport is used bicycles, the cost should be almost the same as ordinary college students, how could the world's most expensive?

Students who know you may say, you read full-time, you can't work when you go to school, and the salary and bonus income of these two years is also the cost of your school.

Indeed, tuition does not fully represent what the MBA has given up. This method ignores the biggest cost of learning - time, when I spend two years listening to lectures, library and writing papers, I can not use the same time for work.

The income that has to be given up for reading is the best price for every workplace person to go back to school. What's more, when I quit my job, I gave up billions of options.

I once counted a bill, if one of my classmates was lazy, a class did not go up, commuted down to about 500 yuan.

And I counted all the opportunity costs, fled a class, equivalent to 156 thousand yuan loss, Beijing school district room one square meter price.

That's why I didn't dare to run out of books when I was reading, and the library was at least 6 hours a day. In the final analysis, or because too poor".

We make choices every day, and everyone has the time, the money, the social resources to be limited, so we usually have to give up something else to get something.

In economics, the things that we have to give up are the opportunity costs that we pay for the choices we make. People describe the opportunity cost: you can't have it both ways. So give up the fish, is you choose to bear the cost.

What is opportunity cost?

The understanding of opportunity cost is beneficial for us to make more rational choices, especially in the investment field.

For example, you invested 100 thousand yuan, a year later, you returned 100 thousand yuan intact, you did not lose money?

If you understand the concept of opportunity cost, you know that you must have lost the fixed income of the 100 thousand yuan investment.

If you invest money in the bank's financial products, you can get 5% of the annual income, then in this case, you are equivalent to indirect loss of 100 thousand yuan 5%, that is, 5000 yuan.

Generally speaking, in today's mainland China, some students who know some investment ideas can generally invest their own annual income, stability at around 8%-10%, the number varies from person to person.

So, suppose you can make your own investment annualized income, stable at more than 8%, then you have a 8% opportunity cost per penny.

In other words, the investment of any money has not earned 8%, and for you, it can be understood as compensation.