Opportunity costs

 On last week's Your Safe Money Show we talked about investment terms that are good to know. One of them is "Opportunity Cost". Arguably one of the most important and underappreciated concepts in finance is the concept of opportunity cost. Simply put, this is the highest benefit that you miss out on by making one decision over another. This can be confusing but think of it this way. A player attends baseball training to be a better player instead of taking a vacation. The opportunity cost was the vacation. Jill decides to take the bus to work instead of driving. It takes her 60 minutes to get there on the bus and driving would have been 40, so her opportunity cost is 20 minutes. There are trade offs in life, understanding "financial" tradeoffs or opportunity costs especially in retirement is especially important. If you want to learn more call and get a no cost no obligation appointment with Todd Sjoberg 320-679-5183. Or go to yoursafemoneyshow.com.