Daily Devotional
Trade Off (Part 1)
Text: Matthew 19:27
“Then answered Peter and said unto him, Behold, we have forsaken all, and followed thee; what shall we have therefore?”
Message
Today’s verse shows the agitations in the minds of the disciples and, in particular, Peter as to their expected reward for trading off every other thing to follow Jesus.
As you read, you will see that Jesus did not call them names but answered them. Yet many of us trade off in life without a thought of what is in it for me. We forget that every great achievement in life starts with a small step, including trade-offs.
Abraham choice of Lot as part of his company in clear violation of Divine directive and guaidance was a choice over the Abrahamic covenant fulfilment. He spent 25 years in wilderness of barrenness and remained so with God never talking to him gain until he separated from Lot.
A trade-off is a balance achieved between two desirable but incompatible features. It is a compromise between objectivity and relevance.
A trade-off is a kind of compromise that involves giving up something in return for getting something else. When looking for an after-school job, you might have to make a trade-off: a lower hourly wage for a more convenient location, for example.
In economics, a very basic trade-off can be understood as the idea that if you choose one thing, you are going to lose another. The trade-off is taking the opportunity to have something, but in order to get that thing, you have to give up, or sacrifice, something else.
The trade-off theory states that the optimal capital structure is a trade-off between interest tax shields and the cost of financial distress. Companies may use debt financing to access funds quickly and at a lower cost of capital, but equity financing provides more flexibility and control over ownership.
A tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity.
While taking the time to invest in yourself is a great one as you are planting the seeds for your future success, a not well thought trade-off can be counterproductive.
So, trade-off must not be based solely on the fear of having to begin again, what people will say or think. Life is entrenched in risk-taking. So don’t be afraid to take risks, try something new, and challenge yourself. With hard work, dedication, and a growth mindset, you can build the capacity you need to make a significant impact on the world around you.
Why is a trade-off important?
Indeed, trade-offs are not just between price and other benefits, but between all the benefits associated with any choice decision.
When we make trade-offs, we tend to place a higher weight on those benefits we really need and trade-off by placing a lower weight on the other things! This is because trade-offs occur when activities are incompatible. Simply put, a trade-off means that more of one thing necessitates less of another.
The idea of trade-offs is one of the most basic principles in economics, that in order to have more of one thing, you have to accept having less of something else. This principle disciplines us to use resources efficiently and without waste, and also makes us alert to new resources that can satisfy our wants.