Today’s tip helps you avoid a lot more money pain than most people would realise.
Before you purchase a fancy new ‘thingo’ it is a really good idea to ask what ongoing maintenance and repair costs you are likely to be up for.
Just because you have the money to purchase something it doesn’t necessarily mean you can afford it (maybe read that line again!).
If you ever saved up for a swimming pool you would have learned that lesson. The ongoing costs such as extra electricity and chemicals MUST be factored into the purchase as well.
That is just an example, but if you understand the principle you can save yourself a lot of financial pain when the Long Term Costs of ownership become apparent.
The cost of replacing the item when it reaches it’s “Use By Date” is also something you need to consider if you are not prepared to ‘go without’ once the item dies!
Simply Budgets software has a Long Term Expenses list built in for this purpose and it really takes the stress out of replacing things like the Refrigerator, Washing Machine, TV, Car etc.
Having the cash to purchase these items sure beats going into debt; having a good understanding about the ongoing cost of owning sure beats the rude shock of finding out when it is too late!
That’s my tip for today, I hope it helps.