Should Conor McGregor do his own chores?
The man in the picture earned north of $30,000,000 in 2019 alone. Conor McGregor is one of the world’s biggest sports superstars.
If he washes his clothes by himself, spending 1 hour of his time, he will save $20 on hiring a housekeeper.
“LOL. WHY WOULD HE DO THAT! JUST PAY SOMEONE ELSE.” —you will say and you will be right.
But wait… in one scenario, he will spend $20 and, in another scenario, he will spend $0. Why will anyone choose the former?!
The reason is that we ignored the opportunity cost In other words, we only looked at the money aspect of things.
If he does not hire a housekeeper, he also loses 1 hour of his time. How much is 1 hour of his time worth?
There are many ways to calculate this. For instance, we can divide his yearly income by the hours he worked—assuming a standard 8 hour workday—and he will get more than $10,000. Whatever figure we use, it is likely going to be significantly larger than $20.
“Wait, but he does not spend all his time on training for his fights! He also spends time doing nothing at home, surely? Everyone does!” — and you will be right again.
This time we ignored all the immaterial benefits too! For instance, watching a movie and relaxing, Conor gets his strength back and, in turn, performs higher in his training. This, in turn, affects Conor’s income!
Even assuming a 1% rise in income, it is a huge difference, $300,000, which is far more than a housekeeper will make washing Conor’s clothes every hour per week.
So what is cheap when you are poor and expensive when you are rich?
TIME!
That is the reason why Conor McGregor does not wash his clothes and Barack Obama flies in private planes.
