There are some investments that are one-and-done: you pay once and no further payouts are required. Others, though, require ongoing expenses and should be considered when making the initial purchase, even though people don’t always think that far ahead.
Examples:
- Buying a couch vs. buying a house
- Placing a bench vs. installing a sidewalk that needs to be shoveled
- Buying new tires vs. purchasing a car
- Paving an entrance vs. providing landscaping that needs tending
- Going on a trip vs. buying a boat
- Buying new equipment vs. hiring someone
- Fostering a pet vs. adopting one
I’m acutely aware of the expenses involved in the latter, as my dog requires ACL surgery. Let’s just say that with the pre-surgery bloodwork and sedation x-rays, the surgery itself, the medications, and the post-surgery physical therapy, it’s not cheap. Did I think about any of these expenses when I decided to bring home that cute bundle of fur eight years ago? I did not.
While you may not be able to accurately predict what future investments will be required, it’s wise to consider what kind of purchase you’re making before you make it. Calculate not only the initial cost but also factor in your ability to provide additional resources in the future.
