Definition
What the money could have earned elsewhere. A $200 monthly subscription bundle is also the ~$35,000 it could have compounded into over a decade; opportunity cost is that second price tag.
Why it matters
Every dollar has two prices: what it buys and what it could have become. Seeing the second price is what turns casual recurring spending into a conscious decision.
Example
$200 a month of subscriptions costs $2,400 a year on paper. Invested at 7% instead, the same stream would grow to roughly $35,000 in ten years; that gap is the real price of keeping every service.
Put it into practice
Related terms
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