What Is an Opportunity Cost

6 second take: Before making a move that might hurt your finances, consider the opportunity cost of your choices and how they might impact you.

What is an opportunity cost? It's a word many people have heard thrown about my financial experts, but it isn't exactly easy to understand exactly what it means. Is it the cost of engaging in an opportunity? Is it the price you pay for job applications? What is it, and what exactly does it mean?

In reality, it's the price of missed opportunities. These missed opportunities can relate to stagnant wages, an inability to save, or even missed investment opportunities.

With 35 percent of Americans lacking any retirement savings, according to a survey from FinanceBuzz, many Americans are suffering from financial issues relating to opportunity cost. This video will help you learn more about the price of missed opportunities.

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