True Cost of Some Common Expenses
Fancy smartphone on a plan. While it sometimes may be hard to resist purchasing the latest smartphone, especially when it comes for free if you sign up for a mobile plan, you should think of the true total cost of having the gadget over the contract period.
Say, if you were to purchase an iPhone 5 64Gb on a 24 month $120 plan, you would get the phone itself for free, however, a simple calculation would tell you that it would cost you at least $2880 to use the phone- that is, if you never went over the limit with your calling or data usage.
You would probably also want to opt-in for mobile phone insurance, which would cost you anywhere from $275 to $335; and if you wanted to make a claim, you would have to part with at least $125.
Add fancy accessories to protect your new iPhone from being scratched or damaged, such as a case and a protective film; maybe also a car charger, and you could be looking at an additional $50.
All up, that is roughly $3330 – that’s a big price to pay for owning the latest smartphone!
Being a gym member. Ranging from $612 to more than $1800 per year, being a gym member does not come cheap. Take into consideration all the sportswear you will need to purchase, protein meals, water bottles… you name it. However, we are not saying that you shouldn’t exercise, as being physically active is very important to our well-being – but there are free ways to exercise, such as going for a run, or exercising at home to DVDs or YouTube videos.
Your house. The mortgage is, obviously, the largest ongoing expense. But when deciding whether you will rent or buy, you should also think about the rates, insurance, water, power, Internet, Sky, repairs and maintenance – and any items you may need to buy for the house, such as furniture, etc. Forgetting about the ongoing expenses is a mistake many first home buyers make, as they sometimes think they’re getting a great deal by simply exchanging a rent payment for a mortgage payment.
Your car. Everyone knows that cars are expensive. In addition to the cost of acquisition, there’s maintenance, insurance, licencing, WOFs, registration, repairs and the ever-increasing cost of petrol – and usually huge depreciation in price, too!
With our fast payday cash loan service, there will never be any hidden costs, as our process is transparent, and all fees and charges are outlined in the Loan Agreement and on our website.