money · writing

Opportunity Cost

Palm Springs 044

Purchasing something used but in good to excellent condition is wise when it comes to houses and cars. If you buy wisely (location, location, location!),  and invest in a kitchen or bathroom makeover, your house might even raise in value. A brand new car driven off the lot can depreciate up to a full 11%!*

However, if you purchase a used car or home and it then it has you running for repairs frequently, it is no longer a bargain. The money you saved in the initial sale is being poured post-transaction. And there is the silent, but insidious opportunity cost: time. The time you spend running to the mechanic instead of oh…I don’t know…writing your blog or short story,perhaps. Or, maybe the cost is the stress of rushing to work post-mechanic instead of drinking your coffee and planning your day. These are big opportunity costs!

I’m just saying…if you saved a lot of money on the three cars you own, and all three breakdown at the same time, it might be that your opportunity costs outweigh the initial savings and maybe – just maybe – it’s time to make a change.

 

 

 

 

*https://www.trustedchoice.com/insurance-articles/wheels-wings-motors/car-depreciation/

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