Opportunity Cost Explanation

The impact of opportunity cost should be considered in your planning.

Opportunities gained can be either saved or enjoyed in your lifestyle.

With every dollar you acquire, you can choose to spend it or invest it. What a dollar could have earned had it not been spent is called opportunity cost. Opportunity cost takes on an important role in areas where dollars spent could have been recaptured or the expenditure avoided entirely. Every purchase has a cost associated with it, but if you have no alternative choice then no real opportunity exists.

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