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Jan 30, 2019

If you have $1,000 set aside for investments and you decide to invest in Stock “A” instead of investing Bond “B” you give up the guaranteed interest you would have earned from that bond by choosing to put your money into the stock. 

Giving up that guaranteed interest, which was your choice is what’s called your opportunity cost. 

 Opportunity cost is the key to making smart decisions. Once you know the value of each choice you can be much, much smarter about the choices you make.