What is forgone income?

Forgone income refers to the potential earnings that an individual or entity could have received but did not, usually due to a specific decision or opportunity cost. This can occur when one opts for a less lucrative job, invests time in education instead of working, or chooses to pursue a project that does not generate immediate income. Essentially, it represents the financial benefits lost by choosing one option over another. Understanding forgone income is crucial for making informed financial and career decisions.