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Don't Let Expenses Snowball (INC)
A sticker price is one thing. Be sure you factor in all costs of your
expenses. Here's what I mean.
My mom used to say: 'The things you own end up owning you.' While there's
probably a psychological argument buried in there somewhere, there are some
tactical implications of this phrase.
When you buy something, you're also stuck protecting, maintaining, and
supporting that product or service. You become its caretaker. And taking care
of things, of course, costs more money.
* If you buy a new car, you'll need to get it insured…and washed.
* Your new clothes need tailoring and then dry cleaning.
* Your AC unit needs maintenance.
* A dog needs to see a vet.
Expenses snowball. One expense begets another. The true cost of one object is
often far greater than the initial price tag would lead you to believe.
This is an important thing to understand before a founder opens up his or her
checkbook to buy something for the company. While getting a new TV for the
conference room seems to balance in your checkbook, you must also factor in
the cost of ...
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