TRADEOFFS
Everyday decisions we make about our lives involves a tradeoff. Our tradeoff decisions are often guided by the ultimate goal or benefits that arise from choosing a particular action or event. As human beings, we often make choices that suit our short term or long term goals with the ultimate goal of getting happy. Tradeoff decisions are usually mutually exclusive actions or events, and a choice of one decision eliminates the selection of the other action or event. A decision to study is a tradeoff with a decision of a movie time or hanging out with friends or making some income. One would choose to study to expand the scope of knowledge. Another person may decide to hang out with friends to deepen and strengthen their relationship, and another person may choose to vendor fruits to make an income. Each of these decisions has its ultimate benefits.
Critical income decisions in my life have involved a tradeoff between two decisions. During the 2018 spring break, I made $5,000 working as a brand ambassador for a new detergent in the market. With the $5,000 at hand, I had two choices in mind; to buy a second hand Toyota Mark X to enhance my mobility to school or investing the money in the Barclays Aggregate Bond Index Fund with a 10% return and a five-year maturity. After careful consideration, I opted to consider investing the money in the aggregate bond. Foregoing the decision to ease my mobility to school and choosing an investment in an aggregate bond was driven by the higher return from the bonds. At the maturity of the bond, the money would have yielded $305,255 to amount to $805,255. With the five year maturity of the bond coinciding with my graduation year, the funds would be necessary to begin a startup business in a cyber café.
As young professionals and peers, a lot of uncertainty surrounds decision making between job security and exploring new job opportunities, working for an established brand, and working for a startup brand. These tradeoffs significantly influence decision making among peers. As a young professional, I had been offered an opportunity by the company I work with during the spring break of 2018 to work with them after my studies. Although the company had a competitive remuneration package, it offered limited opportunities for growth. After completing my studies, I decided to venture into entrepreneurship to explore my potential and grow financially. Mark Brown, a college colleague, had a similar tradeoff. He was choosing between working for an established financial institution or a developing mutual fund. Although the established bank had offered a competitive remuneration package, it offered limited opportunities for growth for young professionals as most employees had vast experience. On the other hand, at the developing mutual fund, Mark was to be the assistant fiancée manager and was to be involved in key decision making for the company. Finally, Mark chooses to work for the mutual fund to explore his potential while growing his career. Mikes’ scenario and I had a similar tradeoff and involved selecting a favorable and convenient decision.