The financial impact of basic maintenance - Financial Literacy

The financial impact of basic maintenance

While most people do not maintain their possessions very well, those who do have a continual financial advantage. Most physical possessions depreciate in function and value until they need to be repaired or replaced. Repairs and replacement are costly, so the longer you can delay that event, the more money you’ll be able to keep for other spending or saving. By keeping your items closer to pristine condition, you can dramatically reduce the normal depreciation price curve. This maintains the item’s value which keeps more money in your pocket.

So how have you been doing up until now?

  • When you sell your cars, are they routinely sold for a price that is well under book value or far above book value?
  • When you lease a car or rent an apartment, do you routinely lose your damage deposit?
  • When you sell a home, is it under or over the market price per square foot?
  • I have a relative who cleans and oils his furnace once a year and changes the filter every 2 months. While most furnaces average only 15-20 years before they need to be replaced, his furnace is 41-years old and going strong. How well do you maintain your appliances?
  • Do you wear your clothes and shoes out relatively fast or slow?
  • In general, are you a consumer of goods or a steward for them?

The more expensive an item is, the bigger the financial benefit of maintaining it properly. For example, a neighbor wouldn’t clean the leaves from his A/C condenser and had to replace it after only a few years when it should have lasted 20. Meanwhile, for keeping my car well maintained, when I sold my last one a few years ago, the first person who looked at it paid $2,900 over blue book for it. Is $2,900 worth keeping it waxed and vacuumed? Let’s add it up: if you have 8-10 cars in your life, then you may have +$25,000 in extra money – just for vehicle maintenance. You can live however you want, but I highly recommend maintaining what you own.

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