Economics · Personal Finance

A Christmas Carol Is a Lesson in Opportunity Cost

Opportunity cost is the how you would spend your time or money if you chose your favorite alternative to the choice you are making. For example, I am tempted to add the extra sports package to my Sling TV account, but it costs an additional $11 per month. $11 doesn’t seem like much, but if put into my retirement account instead, $11 per month is $6,000-8,000 in future value. Using the 4% rule, that’s about $300 in future annual income, or about $25 per month in retirement income. So an $11 per month now costs me $25 per month later. That’s a heavy opportunity cost that one might not consider before making a seemingly small financial decision.

Continue reading “A Christmas Carol Is a Lesson in Opportunity Cost”
Book Reviews

Book Review: On Borrowed Time

On Borrowed Time is a both comprehensive and concise study of the economics of mined resources and their related commodities. It is the perfect resource for anyone interested in investing or working in these commodities or their related industries or getting a better handle on how to interpret physical and economic measures of resource availability.

Continue reading “Book Review: On Borrowed Time”