Why Is Understanding Opportunity Cost Important?
It’s very difficult to achieve financial prosperity without puting the concept of opportunity cost to use in your spending. It’s normal to have many wants competing for your money, which may not be enough to get all of them for you. So, to get the best out of your spending, you must understand the value attached to the best alternative foregone. This is opportunity cost. Understanding ande applying the concept of opportunity of cost to your personal finance, are going to help you achieve the following seven personal financial goals; 1.Spending Within Budgetary Provision: A good budget should be a financial plan that accommodates absolutely necessary expected spending within expected income. Obviously, a good budget is not possible in the absence of opportunity cost as you wouldn’t be to put in the budget, only things which enhance personal financial health. So after the budget has been set up with the help of opportunity cost, ...