Debt Free

There’s no such thing as a free lunch…or puppy. Almost everything costs more money in the long run than you think it’s going to at the outset. We’re all guilty of this kind of financial wishful thinking. Here are some ways that things you buy always seem to cost just a bit more than you bargained for. 

1 – Taxes. Hard to avoid, those nasty taxes. Remember when setting a budget they can add 10% onto every purchase, depending on where you happen to be. Sales taxes, B&O taxes, property taxes; you know the drill. They either take away from your bottom line or from your purchasing power, so don’t forget to include the effects of taxation when setting your budget.

2 – Parking. Just going downtown for that big sale? What about a game? Well don’t forget to add $10 - $15 to you spending total for the day, depending on the city you’re out spending money in, so you can have the privilege of parking your vehicle.

3 – Miscellaneous charges – As I noted in my post on Monday, you’re often hit for miscellaneous charges on things such as car repairs, and you can sometimes get them reduced or eliminated. This practice isn’t limited to car repairs however. Contractors and other businesses frequently use them as well. If they are on the estimate or contract up front, that’s one thing, but if they mysteriously appear on your invoice at the end of the job without your prior knowledge, raise a fuss.

4 – Tolls – If you’re from the northeast, you figure these in automatically, but for those in the rest of the country or Canada, you may not count on the occasional toll that can add $1 - $5 to the cost of your trip that you hadn’t figured into your budget. As more state and county governments try to find the money to pay for construction costs that are spiraling out of control (In large part due to the ridiculous number of costly studies that must be performed on any transportation project these days. Enough is freakin’ enough, already!), expect to see tolls on more roads and bridges throughout the country in the future.

5 – Parts and Maintenance – You may expect to pay maintenance costs for your vehicle, but in reality, you’ll probably have to do so for many other things as well, such as your appliances, computer and TV. For example, when buying a laptop, don’t forget that over its lifetime chances are good you’ll need to buy at least one battery, maybe more. Have you priced a laptop battery lately?

The same is true with many digital, rear projection TVs. Those of the DLP variety, both rear projection and front projection, will require an expensive bulb every 2,000 to 8,000 hours, depending on the specific model. (There are a few models that will not require this, because they use LED light engines rated to last for the life of the set. Two of these are from Samsung and NuVision. An added bonus is instant start up times.)

There is a chance many of your appliances, such as your dishwasher, will need at least one repair during its lifetime. You can help reduce these costs by doing a bit of research on the Internet before calling the Maytag Man out for a visit, unless you really need the company. Many problems are common with a particular model and are fairly easily fixed by someone with a modicum of ability. If your dad’s a TV repairman and you have the ultimate set of tools, so much the better.

When choosing a new job, keep in mind things such as transportation and other related expenses that may reduce your take home pay. If you need to park in a downtown parking garage for instance, that could cost you $200 – $300 a month. If you have to seriously upgrade your wardrobe, especially of it will now require dry cleaning, don’t forget to include those costs in your financial analysis.

Just remember when making a purchase, planning a trip, or choosing a new job that there will be those little, associated costs that can really add up.