Every day you will face buying decisions.  When you apply funds to one area, it takes away the opportunity to put those same funds into a different area, such the term opportunity cost. The below picture is a great example of how this works.

So next time you are thinking of buying something, ask yourself do you really need it now?  Is it beneficial?  Is it part of my financial plan?  Or is this an impulse shop item? 

If you buy something on impulse each week at $50.00 a week, this translates to $2600.00 a year. 

The opportunity to put $50.00 a month or $2600.00 towards an intentional goal has been lost.  

Could that money, if applied intentionally, help achieve your other goals faster?  Could you have paid off a debt sooner, bought your vehicle for cash sooner, paid for a trip that you have wanted to do for so long.

There is where there cost is, there will be a delay or missed opportunities.

Such the term Opportunity Cost.

So what should you do?  

Take some time to think about what you want to do - what are some of your goals.  Then create a budget that is aligned with those goals.

Create a process with your money that is working towards those goals. 

In this way,  you will not have Opportunity Cost regret.