Costs: Understanding their Nature, Purpose & Behaviour for Decision Making Purposes

A Personal View – April 2014

This article represents a way of thinking which applies equally to one’s personal as well as business’ finances. I call these the traps for the unwary & the uninitiated.

Firstly it must be understood that whatever one decides to do, comes at a cost; not just the initial capital outlay but ongoing costs.

Let us consider two items from our private lives; pools & animals. In deciding to have both the McCleland household has burdened itself with incremental monthly costs & at some later stage some huge repair / upgrade bill.

Continue reading