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:
| Advantages | Disadvantages | |
| Going to the weekend shopping getaway with friends | I will continue to spend time having fun with friends, and I will have an exciting new wardrobe for the upcoming season. | I won't be able to save enough money to go on my dream vacation by the end of this year. |
| Forgoing the weekend shopping getaway with friends | I'll save enough money for the round-trip plane tickets to my dream vacation, and I can use this free weekend to work on my home garden projects/catch up on my favourite shows. | I will miss out on the time I usually spend with friends, and my friends may think that I'm a bore or be disappointed I am backing out. |
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:
| Advantages | Disadvantages | |
| Eating unplanned food when offered | No one will draw attention to my weight or what I'm eating. I don't need to deal with the discomfort of saying"no" and having to explain. I can feel included in the gathering. I will eat enjoyable food. | I know it is not a helpful habit that supports my health goal. My family will continue the same pattern of offering food I may not want to eat. I will regret my food choices for the rest of the night. Eating more than I planned to may leave me feeling overfull and uncomfortable |
| Turning down unplanned food when offered | I will feel proud about my eating and be able to enjoy the time with family. It will lead me towards improving my health. Choosing to stick with the plan will strengthen my ability to stick with the plan again next time. I will feel strong and empowered for remaining in control of my food. | I may feel left out if everyone is partaking in the same food. I may end up offending the person offering the food. |
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.
| Advantages | Disadvantages | |
| Current unhelpful behaviour: | ||
| Alternate behaviour: |