Friday Financial Tidbit-How much does it really cost?

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Whenever we look to make a purchase and want to know how much something costs, our first instinct is always to look at the price tag. True, that will give you the price you pay at the counter. But I’ve come to realize that when determining how much something costs, the purchase price is just scratching the surface of its true cost.

That’s because one of the main things we forget when making a purchase is what else we need to purchase in addition to the original purchase to make it work.

For example, take a boat. Not only do you need to buy the boat to go boating. But you also need insurance on the boat, gas for the boat, a place to store the boat, a place to dock the boat, and of course a vehicle to tow the boat. When you add it all up, the cost was a lot more than what you had originally spent.

Another thing to consider when making a purchase is how much time that purchase will cost you. One of the biggest time thief purchases we can make is buying a home. Compared to renting or living in a smaller house, owning a bigger home is going to cost you a lot of time. Not only will you be spending time fixing things when they break, or taking a weekend to remodel, you’ll also be taking more time cleaning and taking care of the lawn. Before you know it, the home owns you and you are spending a lot more time and emotional energy than you had planned.

Now don’t take away from this post that I don’t want you to buy a boat or a home. But do hear that there is a lot more that goes into the price of something than just what the price tag says. When you add up what all the accessories and time it will cost you, you might decide just to pass on the purchase all together.

Have you ever made a purchase that cost you a lot more than you thought?

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