Blog Segment: Wealth Creation with out Debt
We just recently had our washer (approx 12 yrs old) go out. First I did some research on repairing it myself, saving $60 to $100 on a house call, and found it needed a belt. So, I spent $38 and a couple of hours to fix it.
But later it started acting up again and we decide to replace the machines rather than spending any more on an old machine. The question was should we buy a new set, used set or just a used washer.
First let's look at the new machines; prices from $400 to $1500 per unit depending on bells and whistles and manufacture. Well what is the best machine…..according to repairman and others we talked with Whirlpool and Kenmore came out on top. Now we started looking at used stuff and found as big a selection and price difference as the new.
We look at our budget and decided that a used unit around $400 would work. We finally decided on a Kenmore Oasis that was 3 yrs old and in near perfect condition for $425. We looked at the exact same new models and found them costing $1600 plus tax at our local appliance store.
In our creation of wealth without debt we saved $136 in sales tax (8.5%) $1175 on the cost of purchase and sold the old machines for $50 for a total savings of $1361. These monies still in the saving account at .5% APR is another $6.81.
Now what if we used a credit card at a modest 18% APR and carried it for 12 months…….that would be a grand total of over $300 in interest charges depending on schedule of payments, add to our cost of purchase would be a wopping $2036 for the machines……WOW!!!
What could you do with an extra $1611 just for this one purchase in your plan of Wealth Creation Debt Free?
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