Every purchase is also a decision not to buy something else.
Direct answer
Opportunity cost is the value of what you give up when you choose one option. If you spend 100 on a night out, the opportunity cost is the next best use of that 100, such as saving it, paying off debt or buying something else. It helps you compare choices honestly.
Everyday examples
- Buying a coffee every day instead of putting that money toward a goal.
- Taking a job with a longer commute, which costs time as well as money.
- Spending a weekend on a project instead of resting.
- Buying a new phone instead of repairing the old one and using the difference elsewhere.
How to use it
- Before buying, ask "What else could this money do?"
- Compare the two options side by side.
- Include time, not just price.
- Choose what fits your priorities.
Not every choice should be a sacrifice
The goal is not to say no to everything. It is to say yes to what matters most.
Where Teyro fits
Teyro's Needs vs. Wants: Making Better Spending Decisions course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Price tells you what you pay. Opportunity cost tells you what it really costs.
This is general education, not personal financial advice.
