Opportunity Cost

Posted by random olio

Do you ever justify a purchase? Do you think to yourself, I worked hard this week, I deserve this purchase. Or, you might think about how you did not go out to dinner and a movie with friends last week, so you can buy this expensive coat. I justify purchases. Often it is that I should not purchase a specific item, either because we do not need it, or because I believe it is too expensive. Other times, I tell myself, if I purchase this, I will not purchase something else. Or, if I do not purchase something I can save for something better later.

A few weeks ago, I finished reading: “Decisive: How to Make Better Choices in Life and Work” by Chip Heath & Dan Heath. There was a quote that resonated with me:

“‘Opportunity cost’ is a term from economics that refers to what we give up when we make a decision. For instance, if you and your spouse spend $40 on a Mexican dinner one Friday night and then go to the movies ($20), your opportunity cost might be a $60 sushi dinner plus some television at home. The sushi-and-TV combo is the next-best thing you could have done with the same amount of time and money. Or if you love both shopping and hiking, then the opportunity cost of a Saturday afternoon at the mall might be the forgone opportunity to hike through a nearby park.” page 42

Is that how you make decisions in your life? Do you ever think about the opportunity cost for the choices you make? It is not always a bad way to make decisions. Chris and I spent a few years feeling stuck in the condo we owned. We knew we could not sell it due to the year we purchased it and the market, so we stayed put and continued to save for our future. Last fall we saw a window and found a house we fell in love with instantly. If we had not spent all those years saving, we would not have been able to make the move into our current home. I look at that as our opportunity cost. We stayed in a home for a few years and saved in order to now live in a home we love. It worked for us.

Is that how you look at money and decisions? Is it easier to have the opportunity right in front of you now, so you can see the instant gratification? Does that help you look into the future, or is what you want right now the only way to live? If you are diligent today, tomorrow, and the next day, could that give you more options in a few years? Yes. I can tell you that waiting often gives you more options, but not always. We have to listen for what makes the most sense in each situation. It will be different for everyone.

What do you think?

Start the day off right…

Posted by random olio

I have to start my day off right. It always begins with a green smoothie, water, and tea or coffee all before lunch. Those three things make all the difference in my day. For lunch I usually have a raw salad, and sometimes the additional protein on top. In the afternoon, if I am good I will have a clementine or some cashews. All of this is with the intent of consuming only raw foods before dinner. Why does this matter to me?

Over the past few years I have read so many books on health, eating, and fitness. What I have learned and what I have in turn become passionate about is making sure the food I ingest is full of nutrients and vitamins. Imagine if you put fake gas in your car? Would it take you very far? No. It might sputter along for a while only to shut down later, sometimes with damage done to the car. I believe we need to put the right fuel into our bodies on a daily basis. What is the right fuel? To me it is fruits and vegetables, nutrients that are grown by the sun. What is not great fuel? Pop tarts, and other foods that are filled full of preservatives and other crap. Basically any foods that require your body to use more energy to break down the food into usable fuel. Fruits and vegetables require less energy for your body to break the food down and use as fuel.

Green smoothie is an excellent example of fuel for your body. Yes, you probably think that I am a broken record on this topic, but it is true. The blender (my Vita-Mix of course, but any blender will do just fine) will break down the veggies and fruit, so that when your body consumes the nutrients it does not have to work so hard to process and use as fuel. If you were going to eat and chew all the fruits and vegetables in the smoothie, it would a) take too long to eat it all, but b) also take a long time for your body to break down the food and turn it into nutrients. The result: less energy wasted by your body = more energy = happier me!

Do I veer off course? Of course! If you have been reading my blog for a while, you’ll see that I love me some chocolate chip vanilla pudding cookies, homemade english muffins, and pretzel rolls, to name just a few. It is always great to pamper yourself with yummy foods, as long as they are in moderation. Usually my rule of thumb is how many fruits and vegetables did I consume that day? Did I stick to my normal raw before 5 pm? Did I have a work lunch were I veered off course? Did I go out to dinner? If so, I might not indulge in breads or sweets. Did I work out today? Did I gorge on something excessive? Did I give my body fuel today? It is a challenge of balance.

What do you do to start the day out right?

Modern design + hive office

Posted by random olio

Crowdsourcing? Maybe. Utilizing the talents of your neighbors? Yes. I read the other day that we are better innovators by surrounding ourselves with a variety of individuals. Why not find office space that gives you the crowdsourcing environment, with great design, and a variety of talent just a wall or pane of glass away? Think of it as a new neighborhood with like-minded individuals, with great taste. You each selected a beautiful office, your home away from home, the place you spend most of your day. You might just find that you have more in common than you ever knew. You might find out when you get your morning cup of coffee in the communal kitchen.

Many have called sharing office space “co-working” where individuals rent space at large shared tables or desks, and work alongside people from different companies. Members are surrounded by a community to interact with and support their business. Why is this good? It is cheap, and works for those that are basically on laptops and do not need to talk much or worry about privacy, or security of assets. Other individuals might rent “executive office suites” that are rented on a short-term basis that gives the feel that they have a physical office space. Why is this option good? Physical location with privacy and security of assets. However, there’s no office community.

If co-working and executive office suites do not solve what you need, then maybe try a “hive” office. A key component to a “hive” environment is a balance between privacy and community. Whether you are in the start-up mode, trying to raise money, or a budding company that thrives on the inspiration that a community of entrepreneurs brings, then a hive environment might be just the thing. You might think, why not just rent or lease a typical office? You could, but many times those can be expensive, with long lease terms, and often without the community aspect available to you. Who knows? In a hive environment, that lawyer you need might be your neighbor down the hall. You might collaborate with a web designer and find that you can help each other out.

Industrious Office future “Hive” space

We have a few co-working or hive office ventures in Portland. Recently I came across a great venture in the River North district of Chicago. It is called “Industrious Office” that focuses on modern designed offices in a hive environment. It is a 17,000 square foot building with 72 offices in total that can each accommodate 1 to 10 people on a month-to-month basis. Office rates start at $400 a month, which is a steal! Amenities include: 24/7 access to free wi-fi and electricity, printing services, private phone booths, onsite storage, lounges, complementary mail services, access to conference and collaboration rooms, a kitchen and a full service coffee bar. In addition, Industrious offer members a wide variety of classes and events in its space.

Industrious Office draws the best elements of co-working, executive suite offices, and traditional office space by creating individual private offices using glass partitions so that individuals feel that they are part of a larger community, but still have the privacy of their own private office.

I can see it being the perfect setting for designers, writers, start-ups, non-profits, lawyers, or anyone that wants to have a beautiful location to spend most of their working hours. Industrious Office is scheduled to open later this summer. If you live in Chicago and work from home, or bounce around from Starbucks to local coffee shop, have been craving a quiet space, and a clean and modern place to bring your clients, then be sure to check out the lofts at Industrious Office. I would love to spend my days within the modern feel of high ceilings, exposed brick walls + glass walled private offices, conference rooms and common areas.

Updates can be found on twitter.com/IndustriousHQ and facebook.com/IndustriousOffice

Does the Internet mean we have more time to bake bread?

Posted by random olio

We can complain about the Internet and how little privacy we have, and how much it sucks our time each day, but over the weekend I had another view. As I was preparing mentally for the half marathon I ran on Sunday, I did some online searching about what to eat the morning of the race, what to wear, what to expect afterwards, etc.

The thought crossed my mind about how easy it was for me to find information that I needed in a fairly quick timeframe. Now, I do not know how accurate the information is, but I had plenty of it to sift through. What would I have done 15 years ago?

Called many friends or acquaintances and asked about their experience (takes much more time than the Internet)
Gone to the library and taken out a few books or encyclopedia on the subject (even more time)
Consulted a running store, or found a local expert (time depends on how knowledgeable and accessible each are to me)

While we complain about how we spend too much time online, I wonder if we are actually smarter and if there are times when we save time. We do not have to wait long for answers to our questions or leave our homes. We can attain specific information without much effort, allowing us to spend more time making bread or whatever we deem important in life.

What do you think?

Sadness, shock, and absolute love for Beantown

Posted by random olio

Flabbergasted. Shocked. Saddened. I lived in Boston for a few years. I worked just 2 blocks away from the Boston Marathon Finish Line. I watched the race numerous times very close to the Finish Line.

I know there is a lot of media surrounding the events, and that some individuals might say that at the moment only 3 people have died, but one is an eight year old child. Maybe this specific incident affects me because Boston is in my heart, and what is strange is that there was a shooting in a local mall a few months ago, that was in my backyard, and yet this Boston bombing is tougher for me to digest.

Iconic. That is why I am impacted. The Boston Marathon has been around since 1897. Wikipedia stated: “The event attracts 500,000 spectators each year, making it New England’s most widely viewed sporting event.” It is an event that happens each year on Patriot’s Day. For those of you that are not from Boston and do not know about Patriot’s Day, it is holiday that commemorates the first battles of the Revolutionary War. Most of the state shuts down. When I lived in Boston, it was a welcome holiday in the middle of spring, but also it was great because we had an excuse to be out of work and watch the Boston Marathon right in our back yard.

Why does this bombing bother me so much? Fear. These types of events that leave people more fearful is just what the individual(s) want us to feel. I am saddened that the next time a runner prepares for a race they will think: is it safe? I am saddened that next year’s Boston Marathon will be different. I am not sure how they would ever be able to secure the area to make it safe for future races (too many entry points along the Marathon course). Will that mean less will attend? Less will run?

Lastly be sure to read this Washington Post article titled: “If you are losing faith in human nature, go out and watch a marathon” by Ezra Klein who starts the article with how his wife has been training for a marathon. He starts out and says:

“There’s no reason for her to do it. There’s no competition or payoff or award. It’s just a quiet, solitary triumph over the idea that she couldn’t do it, and it all happens before I even wake up.

He ends his article with this:

“This won’t be the last time we gather at the finish line to marvel how much more we can take than anyone ever thought possible.”

After running my first half marathon on Sunday, I do know that at the heart of this runners will come together. Regardless of the way the media sensationalizes what happens, Americans will stand strong and our hearts go out to each and everyone impacted yesterday.

#lovemyBeantown