October 6, 2014

When making any type of purchase, why is it important to consider ongoing costs related to that item?

2 thoughts on “October 6, 2014”

  1. Garrett Haag says:

    Ongoing costs may make up much of the cost of an item you buy. Such as a car. Lets say you buy a decent car for $2000, but you have yearly costs of maintenance and servicing of $200, or repairs of $1000 or insurance and registration. Your cheep car may end up costing you cose to $500 a year. That applies to pretty much all vehicle and home purchases, you have on going costs that will always follow you around. You need to plan for those ongoing costs so you can budget for them or avoid them, you cant let them hit you buy surprise.

  2. Mike Finley says:

    Well said, Garrett. Let’s review.

    It is important that we consider all costs associated with purchasing an item or even getting something for “free.” The truth is, few things are free. Here is one example. Someone gives you a “free” puppy. Can you afford him? At first glance, the answer is yes because you are not out any money upfront, but there is more to the story.

    Fido will cost you plenty in yearly costs based on his food news, toys, bowls, leashes, and the occasional and maybe not so occasional damage they cause. They might even bite someone and then the lawsuits begin. Yikes! The point is not about Fido. I am not saying you shouldn’t have a dog. I am saying you MUST consider the cost of owning an item when first buying it or getting it for “free.”

    This concept can be used to look at other purchases in our lives. Clothing, cars, homes, technology, swimming pools, etc. will all affect your bottom line far beyond their initial purchase. Think carefully before buying something, it might be one very expensive purchase!

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