The Value of Time in Decision Making

How to Maximize Your Options

INTRO

We are back on the decision-making trail.  We will now introduce the element of time.  When it comes to decisions, there is always a time element.  Even if we have “no time”, time is still an element.

NEVER GIVE UP YOUR TIME

We now have a spectrum of time.  Sometimes time is not a factor (“we’ve got all day”), and sometimes we have no time (a decision on the spot).  Whatever the case, we need to know our time.  It is through this time lens where the decision is optimized.  Said another way, do not jump ahead or skip steps.  When we do these things we are giving away time.  It is the (free) time that creates the optionality. 

USE YOUR TIME WISELY

When we have more time, we can break the decision down into smaller pieces (smaller decisions).  Taking smaller bites will lead to more options and opportunities.  By the time you have embraced all the smaller bites, the problem itself has evolved.  As we slowed down, the problem also changed.  Yes, the problem can get better or worse, but it can also solve itself.

SELLING AN OPTION AT ZERO

This is a real-world example of selling an option at zero.  If/when we jump ahead we are giving away our time, which equates to selling our time for nothing.  Selling an option at zero.  You are now a derivates pro.  Do not sell options at zero.

CONCLUSION

Optimized time not only brings about better solutions,  it sometimes is the solution.