Opportunity Cost
Opportunity cost is what you give up by choosing one option instead of another.
Neden önemli
Every investing decision has trade-offs, including the choice to stay in cash.
Basit örnek
Keeping $10,000 in cash might feel safe, but you may miss years of compounding in the market.
Yaygın hatalar
- Comparing choices only by risk and not by missed potential return.
- Ignoring inflation when leaving money idle.
- Treating inaction as a neutral choice.