Listen Money Matters - Free Your Inner Financial Badass. All The Stuff You Should Know About Personal Finance.

Opportunity cost sounds ominous. Like you are really going to be missing out or possibly making a big mistake if you choose wrong. Without realizing it, we make minor decisions in our lifestyle choices that involve calculating opportunity cost.  Opportunity cost is basically considering what you can’t do as the result of each possible decision you make.  Don’t worry. We are here to teach you how to calculate opportunity cost and how it works so you always make the best decisions.  Our professor on the show today is Dan Egan from Betterment and he’s drinking beer brewed at Betterment! What is Opportunity Cost? Opportunity cost is what you give up when you choose between options. No matter what we choose, there is a next best choice that we give up or an opportunity forgone, that is the opportunity cost. We want to minimize our opportunity cost by choosing the option that benefits the most. Considering that almost every decision you make has a potentially beneficial alternative, you will never be able to eli