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Courses (5)
Tips on Planning (2)
Budget Tips (5)
General (14)
Investment Options (3)
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Archive
2013
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THE COMING GREY TSUNAMI
TIME TO STEP OUT OF YOUR COMFORT ZONE
Passive Income
INVESTMENT FOR GREY KIWIS
MayTIME TO STEP OUT OF YOUR COMFORT ZONE
Passive Income
INVESTMENT FOR GREY KIWIS
June
My child is leaving school
What does the term opportunity cost mean and do I need to know about it?
Why should I learn about money, my partner takes care of all that?
JulyWhat does the term opportunity cost mean and do I need to know about it?
Why should I learn about money, my partner takes care of all that?
August
Garden on a Budget
Double your Savings Calculation
Return on Rental Properties
Holidays unfortunately cost money
SeptemberDouble your Savings Calculation
Return on Rental Properties
Holidays unfortunately cost money
October
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2014
2015
What does the term opportunity cost mean and do I need to know about it?
June 17, 2013 at 12:53 PM
Opportunity cost is a term used to explain the scenario that if you spend your money now, then you will have to forgo something else in the future, which you could have used that money for. For example, if you spend your money on clothes, the money is gone and now you cannot have that i-phone you were wanting as there is no money left. The opportunity to buy the i-phone now is lost. Every spending decision you make has an opportunity cost. If you were to save the money instead of spending it, then you are keeping your opportunities open, and could be rewarded by getting the things that really matter to you long-term (not just short-term gratification).
Category: General
