Larger decisions
Make the hidden costs visible before making a long commitment.
1 — Price ownership
Add purchase price or payment, financing, insurance, taxes or fees, maintenance and operating costs.
2 — Compare useful life
Estimate how long each option is likely to remain useful and what replacement, repair or exit could cost.
3 — Protect flexibility
Consider what happens if income, housing, transportation or another major obligation changes before the commitment ends.
If you need to exit early:
If you need to exit early:
- Long contracts can include cancellation, termination or remaining-balance costs.
- A financed item may be worth less than the amount still owed.
- Insurance, maintenance, taxes or fees can continue even when the original purchase no longer fits the situation.