Total Cost to Own
January 25th, 2010
When making a purchase, people typically only consider the upfront cost but for many items there are additional costs to consider. Below are some examples of costs that will be incurued after ownership.
Car: Fuel (need to consider type of fuel and its fuel efficiency), insurance rates, and maintenance costs.
House: Taxes, maintenance costs, insureance, mortgage.
Phone: Phone plan (If you buy a smartphone, you’ll likely need to buy a data plan in addition to a voice plan to utilize all of the features).
TV: Electricity (Typically the bigger the TV, the more electricity it’s going to take to power).
When looking at a big purchase, be sure to look at the total cost to own. Sometimes spending a little more money up front for a quality or more efficient product that will result in a lower total cost.
- tim
Categories: Frugal Living, Misc, Saving Money