Here are some rules of thumb that I have learned about maintenance costs:
- Everything has a maintenance cost. From clothing to a house, everything requires periodic cleaning and repair. We may choose to defer maintenance to reduce costs, but the lack of maintenance with eventually cause an issue.
- Higher complexity = higher maintenance cost. A motorcycle costs more to maintain than a bike. A car costs more to maintain than a motorcycle. A luxury car costs more to maintain than a standard car.
- More stuff = more maintenance cost and effort. I used to think that owning things was cost efficient. Having our own pool would save membership fees. Having a vacation home would save rental costs. That is true, but then the hidden cost and time of maintenance needs to be considered. Nowadays, I think it's sometimes more cost efficient to rent when needed and let someone us handle the maintenance.
For more on The Practice of Personal Finance, check back Wednesdays for a new segment.
This is not financial or maintenance advice. Please consult a professional advisor.
Copyright © 2017 Achievement Catalyst, LLC