Budget Lesson 2

Lessons we should be thought in school.

Money Lesson 2:

New Car: 15k

New House: 250000k

Everything else there is master card?

Yes?

NO!!!!!!!

Ok, what am I going on about?

One of the most under looked aspects when purchasing a big purchase for the first time are the added costs that we often do not think off.

One of these is the actual cost of ownership. This ran especially true if it is your first time purchasing such things as a car or house. I know it was for me when I was in my 20’s. I saved and got my deposit ready, I got the mortgage, I got the car and not once did I think about the additional costs that comes with it.

Luckily for me NOW, although I did not see it at the time, the bank would not give me the money I looked for. I had it all in my head I was going to borrow enough to build the house and furnish it. But they said no, so what did I do? I built the biggest house I could afford without a second thought of how I was going to finish it!

See this is so common! We forget about the solicitor bills, the council bills (for me it was water connection), the ESB connection rates etc.

Let’s say it is your first car. You have the purchase price but can you actually afford it?

• Insurance
• Tax
• Maintenance and repairs
• Fuel costs
• Parking and tolls
• NCT
• New Tyre’s

 

Again these will vary in cost depending on car size, car make, your driving experience (insurance), where you live etc.

I could go on and one but one thing is for certain, DO NOT FORGET THESE COSTS!!! They are a given with any kind of ownership and one that is so important to factor in.