Stay away from the cookie jar, if it’s going to detract more value than it provides.

In one of my favorite books on financial literacy and empowerment, The Last Safe Investment by Michael Ellsberg and Bryan Franklin, the authors go into detail on how each purchase you make, and each action you take should be evaluated on its return.

He calls this the “Happiness Exchange Rate.”

On Page 25. Michael write, “Unlike traditional cost-cutting, the exercise of eliminating tens or even hundreds of thousands of dollars of unnecessary personal expenses through improving your Happiness Exchange Rate is generally pleasurable. It involves developing the *skill* of being happy (yes, it is a skill), as well as paying close attention to the factors that contribute to your most (and least) rewarding experiences.”

Most people evaluate purchases only based on the immediately surrounding context.

In the case of eating a cookie, you may just be thinking of satisfying your immediate craving.

However, thinking beyond that to how every purchase effects every area of your life (health, relationships, money, culture, purpose, ability to provide value) is often overlooked.

Often, humans are really bad at knowing how much happiness a purchase or a cookie will bring.

Develop the skill of being happy means weigh the opportunity cost and impact your actions and purchases have.

Pay attention to factors that contribute to rewarding experiences (and the ones that don’t).

Investing in your capacity to live the life you want by taking the time to evaluate the opportunity cost of a cookie.