When we talk about acquiring tools of thrift, we have to carefully weigh whether or not the purchase of an item will actually save us money in the long run. This is especially true of major, big-ticket purchases. To determine the merit of a specific purchase, it is often helpful to estimate cost-per-use.
Let's use a small purchase as an example. Imagine that I have been asked to be a bridesmaid (work with me here) and the high heels I am required to purchase for the wedding are chartreuse. (Now, don't take this as an insult if you own and love a pair of chartreuse high heels . . . we're all trying not to judge each other.) On my feet, chartreuse heels would probably make a once-in-a-lifetime appearance; therefore, I'm going to pay as little as I possibly can for the shoes. If I end up dropping $20 for the pair, that's like paying $100 for another pair of shoes and only wearing them five times. In either of these instances, the cost-per-use for the item is too high, by my standards.
If I am a runner, however, and faithfully run five miles every day, a pair of $60 dollar running shoes which last me 4 months would cost only $.50/per use. Given the frequency of wear, and the need to avoid injury, it is a thrifty purchase to plunk down $60 for a well-made pair of shoes.
Now, let's look at a larger example from real life (for those of you who can't imagine me running five miles a day.) We heat our home with wood, which we usually acquire for free, but often need to split. Because the medical bills which would result from us splitting the wood with an axe would not be thrifty, we rent a hydraulic wood splitter, paying $50/per rental for 24 hours, three times per season. For a while we were saving to purchase our own splitter, which would enable us, we reasoned, to split wood whenever we chose. Because neither of us is particularly mechanically inclined, we were saving for a new splitter. The best price we found on one the size we needed was $1,200.
But when we did the math, we decided not to purchase our own splitter. Assuming a comparable rate of use, it would take us eight years ($1,200 divided by $150/season rental fees) to break even. We wouldn't be saving money by owning our own splitter until the ninth year -- assuming that it still worked by then. I realize that this equation doesn't account for possible increases in rental fees, but it also assumes that we would pay no additional money for repairs on a splitter we owned (which we would have to maintain and store ourselves.)
So, acquire tools of thrift which will actually save you money, but before you make a major purchase, do the math to estimate cost-per-use. I am convinced that the majority of RV and camper owners, especially those who purchase new, spend more on the cost-per-use of these items than they would to stay at a nice hotel. Given that, I'd opt for the Jacuzzi and the free continental breakfast every time.
--Susan Rodebush © 2009
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