Total Costs of Ownership

If someone can’t let things go because they did cost much money at some point in time, consider the following:

  • What was the value of this item once you purchased it?
  • What would it costs if you had to buy it today again?
  • Would you spend that money for this item today?
  • Do you still use this item or do you keep it just because it did cost money some time ago?
  • What a re the costs of keeping it?

From all thoughts, I propose the latter is the most important. Keeping things does come with cost (time for organizing, time for tidying up,…). If you are not using something at all and probably not using it anytime in the future while you spend time in carrying it from one place to another, there is no rational reason to keep it. Calculate the costs of doing so, and you will realize that the original investment of purchasing it, was only a minor portion of the total costs of ownership