Cost Analysis: Comparing the costs to determine what’s worth it to you
Weighing out the advantages and disadvantages of different options is something that you may already consciously or subconsciously do.
Conducting a cost analysis is a strategy used in Cognitive Behavior Therapy (CBT) to look more closely at the advantages and disadvantages of a behaviour that may be getting in the way of you reaching your goals, and the advantages and disadvantages of engaging in an alternative behaviour. The analysis can help one decide if you would benefit from a change in behaviour.
Let's take a look at how this works…
Scenario 1: Marina has a goal to save money to go on a vacation she’s dreamed of for a while. She wants to purchase her plane tickets by the end of this year. However, she knows this isn’t possible with her current spending. After analysing her spending patterns, she realises that each year she spends a large sum on a weekend shopping getaway with her friends. She is entertaining the idea of skipping out on it this year, but is struggling with committing to it. Here’s what her cost analysis looks like: 
After reflection, Marina decides that this vacation is far more important to her personally than it is to go on the weekend shopping getaway this year. Sure, she may miss out on that usual time with her friends, but she has many other opportunities to connect with them. She figures that she can’t control if her friends think she’s boring or if they are disappointed, but that short-lived discomfort is not outweighed by the bigger discomfort of not embarking on the vacation she’d been dreaming of.
Scenario 2: Todd is on the fence about altering his approach to eating at family get-togethers. Typically, he’d go in with a rough plan on what he’d like to eat and not eat to support his health goals. However, he finds it hard to stick to his intentions once his family begins making comments and offering food that is unplanned. Here’s what his cost analysis looks like: 
After thinking through the advantages and disadvantages, Todd sees that it is more favourable to find a way to politely turn food down that he didn’t plan for. His health and desire to stay in control of his food choice is more important to him than the short-term price he pays for not partaking in unplanned food.
Remember to be specific when you are doing a cost analysis, Todd’s cost analysis may look different for different types of family get togethers. For instance, it may be more important and enjoyable to eat differently at a celebration like Christmas versus a weekly Sunday family dinner.
Your turn:
- Think about a situation in which your usual behaviour is not moving you towards your long-term goals. What is an alternative behaviour that would be more helpful?
- List out the advantages and disadvantages of the status quo, and the advantages and disadvantages of engaging in a new behaviour.
- Review your list and determine what is the most worth it to you.
