In my book Making Big Money Decisions, I explain how understanding opportunity cost can help you make better decisions when you’re considering a major purchase. But opportunity cost isn’t just about buying a car, a home, or other big-ticket items.
It applies to your everyday money decisions, too.
You may think your money is safe because it’s sitting in your checking account, Venmo balance, or waiting for you to pay your taxes. But there’s a hidden cost to letting money sit idle: opportunity cost.
As a refresher, opportunity cost is the value of the next-best alternative you give up when you make a choice.
Keep reading to learn where these opportunity costs may be hiding in your accounts.
Continue reading “The hidden cost of cash: Your money has a job”