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While I do agree somewhat with this article, keep in mind that ownership of things results in different realized costs. Owning a house is a very different cost than owning a car, not only in terms of longevity but usage and storage. The fact I don't have a place to "store" my house does not affect the resale value, compared to that of a car that was only stored in a garage. If you want to maximize value of something, finding alternative uses for that item usually results in lower cost of ownership. My yard currently has about 200 square feet of garden in it, which provides a substantial amount of food to eat, at no additional cost than the water and minimal gardening supplies to keep it going. My kids can also use the yard, along side my garden, maximizing value. Once my house is paid off, my yard has a realized cost of close to zero. Friends can setup a tent in the yard with an air mattress instead of needing a guest room. That fancy mini-van? I can also be the person that rents that out as a potential income source. Suddenly, something that was a liability is now a revenue stream, and I still have the convenience of using it basically whenever I want. Most things you'll find you use only 5% of the time you own them, but their cost is low so they get no mention or attention. Other things are stupid to justify in terms of financial costs. Kids are expensive, and looking at them as an asset or a liability is laughable. Instead of figuring out the percentage of time the item will be used, try and instead maximize value from it. Split the cost of a lawn mower with your neighbor. Rent out your car on a car-share app. Car pool to school and work. When trying to purchase a big item, try and figure out what you really need, and fight your ego. Can you buy it used? Is a specific color really worth thousands of dollars? Life isn't something that can be explained through an algorithm, don't try and run every decision through it. |