Purchase Price Vs. Cost of Ownership

When we shop, most of us are heavily influenced by the purchase price. For example, we see an iPhone in the store and think, “Oh, it’s $300. I have that much in my account, I can afford it.” What we think about less often is the true cost of ownership for that item. The true cost of ownership for something is very seldom the same as the purchase price. The cost of ownership of an item is what it costs you to own that item for its (or your) life span.

Take the iPhone example above. The phone itself may be $300. But you need a cell phone plan to go with it. That may be $100 per month. Then you probably want a case for it and maybe a bluetooth headset. And don’t forget t

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