When To Fix It And When To Let It Go
The best pair of boots I ever owned were brown suede, knee-high. Comfortable, they looked good, went with lots of different outfits, we went through two winters together. I had never been happier. But holes appeared, not so much in the relationship, but in the soles of the shoes and one day I made the decision to let that part of my life go. Items break, they wear down. So what’s the sensible financial decision? To pump money into fixing them or investing in their replacement? Here are some of the most common items, inspired by an article by Angie Mohr at Yahoo! Personal Finance.
Vehicles
Vehicle ownership is still an area of great trauma for me. Cars are costly things, and the cost will always extend beyond the upfront capital and registration, to what can sometimes seem like unending repairs. So when is it time to pull the plug? Mohr suggests a couple of guidelines; if the car is reasonably good on petrol, is otherwise functioning properly and the repairs cost less than 25% the worth of the car, it’s reasonable to look at repairing the problem. If the money you’re going to spend is never going to be regained when you sell it, think about looking for a new set of wheels. The same goes if the car isn’t fuel-efficient. It’s environmentally irresponsible, and not financially tenable in the days of expensive petrol.
Household Appliances
The rotten things- I swear they wait until warranty has just expired, or until I make a really stupid decision and agree to a short warranty period, and then they proceed to expire also. Fridges, dishwashers, your AC unit- they seem to inevitably break down at some point. The age of the appliance is your best indicator. If it’s old, it’s not only likely to break again, but will also continue to be more expensive to run than a newer appliance. Newer appliances are more energy efficient, and could save you a significant amount of money over the course of a year.
Clothes
My wardrobe is divided into two categories. Well, actually it’s divided along colour lines, but it consists of two categories- clothes from Kmart and op-shops and nice, expensive pieces I’ve invested in. It’s a combination that works well for me. The clothes from Kmart inevitably fall apart very quickly, which is fine as long as they’ve lasted the season. The other clothes pay for themselves, with years of wear. Choose classic pieces that can be worn in a variety of ways, and head to the local seamstress to get it mended and a couple more years out of the item. The only area I would never buy cheap versions in are shoes- not only will they fall apart long before you’ve got a dollar worth, they can also do big damage to your feet and the rest of your body, which is never a sound financial move.
Electronics
I love my Apple machines, but I also know that they have a deliberately short lifespan. It’s the simplest of strategies. Get people hooked on the machine, but make it necessary for them to upgrade every 2-3 years. Make investments in the priority spots- for me, my computer is my income so it’s necessary that it works well. My TV, on the other hand, looks like it’s from the 70s and was a hand-me-down. My alarm clock cost 50 cents, and works just fine. While people often pooh-pooh the idea of getting a phone or computer fixed, if you’re lucky like me, and live near a sixteen year old genius, that might not always be the case. Sometimes, it’s worth trying to fix it once before upgrading.
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