True Cost


thoughts

When you buy something, the price you pay isn’t the true cost. There are many other costs that have to be considered:

  1. Base Cost - This is price of the item, what people think of when they think of what something costs.

  2. Financing Cost - If you aren’t paying 100% in cash, there will be some kind of cost you pay in the form of interest on the debt.

  3. Opportunity Cost - What you lose out on because you chose to buy one thing versus spending the money on something else.

  4. Maintenance Cost - What you have to pay on an on-going basis (think oil changes for a car, cleaning costs, etc…)

  5. Disposal Cost - What you have to pay in order to get rid of the item when you’re done.

When viewed through this lense, things actually cost much much more than originally thought.