Consider All Costs Before Buying

Brenda “Bren” Sheriff, C.S.A.
Brenda “Bren” Sheriff, C.S.A.

Consider All Costs Before Buying


When people budget for major purchases like homes or vehicles, the focus often falls on the purchase price alone. Yet, what trips up many buyers are the extra costs that come after the deal is signed. Ignoring these expenses can strain budgets and turn what seemed like a blessing into a financial burdening curse.

For homeowners, the mortgage payment is only the beginning. Property taxes, homeowners’ insurance, and private mortgage insurance can add hundreds to monthly expenses. Routine maintenance—from furnace repairs to roof replacements—should be expected, while unexpected emergencies can easily run into thousands of dollars. Utility bills also vary greatly depending on the home’s size and age, leaving many buyers surprised at the true cost of operating their new residence. Homeowners’ associations fees or assessments in condominiums bring another layer of fees, which can increase annually. And for those buying older homes, renovations and code updates often become immediate necessities. And don’t forget lawn maintenance and snow removal costs.

The same principle applies when buying vehicles. The monthly car payment is only part of the story. Registration fees, insurance premiums, and sales taxes quickly add up. Fuel costs fluctuate with the economy, while regular maintenance like oil changes, tire replacements, and brake service is a certainty when you own a vehicle – be prepared. As vehicles age, major repairs—from transmissions to electronic systems—can strike without warning, especially after the manufacturer’s warrantee expires. Depreciation, though less visible, remains one of the largest costs. The shiny car that rolled off the lot loses value every day it’s driven, especially the first day.

These overlooked expenses matter because they can quietly erode financial stability. A buyer who stretches to afford the base price of a house or car may find themselves underwater once the hidden costs pile on. Sound planning requires looking beyond the purchase price and calculating the full costs that you will incur as an owner.

The key is building a cushion into your budget before committing to major purchases. Factor in insurance, taxes, upkeep, and the likelihood of emergencies. Consider whether your income can comfortably sustain these obligations over the long term. By preparing realistically, you will enjoy the pride of homeownership or the freedom of the open road in your vehicle without the dark clouds of financial stress.

Major purchases represent progress and opportunity—but only when they are approached with clear eyes recognizing not only the excitement and pride of ownership, but the financial responsibility that stress free ownership requires. The smartest buyers are those who budget for what they don’t see, not just what they do see.

 Don’t let your “Dream Home” or “Dream Machine” turn into a nightmare.  Consider ALL costs before buying.

THIS WEEK’S QUIZ: What should you ask your insurance agent NOT to include in your auto insurance policy?

Answer to last week’s quiz: No, the deed on property owned in joint tenancy does not automatically change when one of the owners dies. To get a more detailed answer to last week’s quiz or for any financial questions that you may have, please contact me: 773-817-0601 or basheriff1@gmail.com.

Disclaimer: The Illustrations presented in this column are not, nor are they intended to be, legal, financial, or any other licensed professional advice, you should contact the licensed professional of your choice for advice on your individual situation.


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