How I Own Stuff For FREE: Minimize Cost of Ownership | BeatTheBush

Minimizing your total cost of ownership is a way of saving money but when you look at the bigger picture, it is a way of life. If you buy lots of stuff that depreciates quickly then you are taking a huge depreciation loss every year. If you minimize this, then the amount of net worth loss can be minimized thus preserving the hard earned value you generated through work from evaporating into thin air.

How’s it going everybody this is beat the bush today as part of my advance finance series of videos we’re going to talk about minimizing the total cost of ownership now we might wonder why we want to minimize costs it’s really to increase net worth but why do we want to increase net work there’s a lot of reasons why you want to do that and you can probably think of

A few reasons but i won’t get into that in this video because it’s a pretty big topic is kind of philosophical as well so i won’t get into that and we’re just going to talk about minimizing the total cost of ownership you can think of every time when you buy something you’re taking a piece of net worth and which is cash or whatever and you’re taking it in exchange

For a good or a product after you receive this thing this thing can go up in value stay the same or decrease but most likely whenever you buy something it completely vanishes if you get a service after you take the service the value that you paid for completely vanishes it goes to zero but if you buy an item a lot of times it would depreciate a very steeply at

First and then kind of taper off however if you buy the right item it would actually appreciate most people actually won’t be able to buy anything that appreciates this kind of rare but if you have a good eye part you can actually buy stuff that appreciates so here is your total cost equation it’s not really an equation because it’s so simple it’s just total cost

Is really what you buy for the item – what you sold it for a lot of times people won’t even sell the item they buy it like for example you buy a phone you use it until the value depreciate to zero and then you maybe you just throw it away you donate it or something you recycle it the actual price that you pay for is actually your purchase price a lot of people look

At it this way whenever you go to the store to buy something you go oh okay i have this much i’m gonna pay that much for it and you look at it as okay you pay that much it’ll never come back but a good way to think of buying stuff is when you look at the item you want to look at how much you will actually get back later on after you use it now how do you the total

Cost here you can either maximize this whole price or minimize the buy price you can minimize the buy price either by getting stuff on a really good sale or you can actually buy something used after all the depreciation happens so that when you are holding it it’s kind of like a hot potato when you’re holding on to it you don’t want it to depreciate while you’re

Holding on to it so you want to decrease that and then when when you’re selling it you want to get as high a price as possible this video is about this recycling method where you want to minimize your total cost of ownership therefore it means that you need to think of your purchase as as a buy at some point and then sell at some point so you need to get good at

Being able to sell the stuff that you actually buy a lot of people just accumulate stuff they buy stuff and then they fill their whole house with stuff that they don’t even use you would end up buying a lot of stuff and then you you want this gadget and then you move on to the next gadget but what happens to a previous gadget you just kind of toss it aside it goes

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Inside a box in your garage and you just accumulate accumulate and then it really does just doesn’t go anywhere so let me show you a few things i bought as an example this is a logitech ue 900 pair of headphones this retails for $400 i know it’s really expensive and it has quad drivers it sounds really good i did a b comparison with you know like mediocre ones up

To this $400 one yeah i can hear like maybe five 10% difference in better clarity but you know it is what it is and it’s retails for $400 i paid actually $200 because i got them on sale i bought actually three pairs of it after selling two pairs i paid back the total cost i paid for three pairs so i really got this pair for free now let’s say i still bought it for

$200 right now a used pair this is $150 generally when you sell stuff like this you take off about 15% in transaction costs you know whatever website you’re using you need to pay you know a certain amount you know paypal fees or whatever so you just kind of estimate about 15% so i don’t know $150 is really hundred $30 by the time it goes in my bank account so if

I paid $200 for ds at a really good sale and i still can sell them for $130 used me which means my ownership of these four you know two three years cost me $70 not too bad it will be pretty bad if you bought these at $400 and never did any selling of oracle of any sort and you use it until it’s dead and then maybe cast it aside because you got another new pair then

That would actually cost you $400 total for for you know these pair of headphones another example i want to go through is the cx-10 i have actually reviewed this a little hot copter to me this thing is a very good platform to learn how to fly on and after flying this and knowing how to fly i kind of don’t have such an urge to buy the one thousand dollar one so this

Thing cost me eighteen dollars these things are worth nothing used because you tend to crash them and stuff so people don’t want to buy use i don’t want to buy i use one of these because someone crashed it and so eighteen dollars full full depreciation of this but i can still use it this is still functional it’s a low price compared to buying a expensive thousand

Dollar one to me the fun aspect of it yeah it’s not quite the same maybe i imagined like 60 to 80% because you can’t take videos and stuff on this particular one it kind of got the itch out of me to play with quad copters another thing about pot total cost of ownership which i see this kind of fitting it’s this essays of warren buffett book it’s just a collection

Of a bunch of newsletters that warren buffett sent out to his shareholders put in like a orderly fashion this book actually cost me $9 used and i pay $4 for shipping so it’s a total cost of $13 and when i bought it and i just checked right now when you buy a used one these is actually cost $16 and then though they’re $4 of shipped so it’s actually 20 dollars now

And so you can imagine if i bought this for 13 and then now i sold this for 20 if i detect the shipping and handling and the transaction cost i probably paid nothing for this book just just because this book happened to appreciate couple dollars while i had it pretty good to read a free book so you probably have too much stuff i have too much stuff i look around

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Here there’s a lot of random stuff that i don’t really need and yes i’m i personally am working on selling a lot of the stuff that i don’t actively use every day so it’s a good way to kind of redeem the value inside all the idol stuff that’s sitting there it does take some work because you need to you know list them sell it but then once you do you can kind of

Harvest all the value in this idoling goods that’s sitting there and then you can take it and invest it some people really like collecting dvds or blu-rays and so when you collect a lot of them it could cost you thousands of dollars and it’s just sitting there depreciating and we all know that dvds mostly right now are pretty much worthless they’re not worth very

Much compared to every because everyone wants blu-rays now personally for me i don’t really like watching dvds more than once unless it’s a really really good movie i might watch it two times maximum three times maybe like the star wars one i might have watched two or three times only any other dvds if i watch it more than once i get really bored because i kind

Of like oh yeah i know what happens but yes if there are classic ones that you find what yourself watching yeah maybe you can you can want to collect a few dvds but you know certainly having like a huge bookcase worth of it it’s a lot of capital tied up in a depreciating asset can you imagine if you sold all the stuff that’s just hanging around that you don’t need

I’m sure you can get like a thousand dollars or more out of all these things that you actually don’t use it’s easy to say because when you go to it and you actually say oh i want to sell this you might have some attachment to it one easy way to motivate yourself to get rid of that stuff is to have something in mind that you actually want of course you don’t want

To put it into some other appreciating asset you want something that you actually need and you know you’ve been looking at for quite a while i don’t know like a like a kitchen a blender or something and you can say okay if i sell you know these ten items then i can buy that thing in exchange for that because it would be actually exchanging all these goods that

You don’t need for something that you actually do need and you actually have to work towards it so you know it’s it’s a good way to help you get rid of the stuff that you don’t need this whole video is about letting you know that you can actually recycle your goods you buy it you sell it and so you need to know how to sell your goods there’s various ways to do it

You can you should open up account on ebay to sell stuff you should open up account on amazon you can sell stuff on there too or really big and heavy stuff that is maybe less than a hundred dollars you want to sell on craigslist there are apps you can use called closed five or let go which does not collect any fees just like craigslist but you have to deal with

Meeting people and stuff so there’s some danger there make sure you you know me at a public space do it in the day time etc when you use those applications or craigslist you don’t just open up an ebay or amazon account you actually need a paypal account to receive it most people already have that but if you don’t have those already it’s kind of daunting because you

Gotta do all these little things in order to get it set up but once it’s set up it’s really easy just got to get good at knowing how to sell your stuff your old stuff so the other thing is be very flexible with the delivery services you should be able to use fedex ups usps because each one of those has their good points and if you’re able to go to all of them it’s

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More variety for you and more options for you when you ship something so you want to figure out all the outlets the drop-off locations and stuff for ups fedex usps that are closest to you or maybe closest to your work so that you can after you package all this stuff up you can send it through those outlets generally fedex and ups they ship heavier stuff they’re

Cheaper when you ship heavier stuff something like this big or smaller you want to ship all usps this being and light maybe like 2 pounds or lighter you want to do usps is going to be cheaper but if it’s bigger than something like yay big and kind of heavy do it on usps and fedex just my experience from shipping a whole lot of stuff so the last thing you need to

Know about selling all this stuff is that you know when you buy all this stuff from amazon keep the boxes because the boxes you should not recycle you recycle them by sending stuff that you don’t want away in the box itself because then you don’t have to buy the box you don’t have to buy all these packing materials so whatever you want to sell you should shove it

In there right you close it with your packing tape sometimes you need to measure the dimensions of your box so you just don’t measure measure xyz measure it all and then weigh the thing and figure out how heavy it is to figure out the price because you really don’t want to go to the store and ship it because it’s really really slow when you stand in line you don’t

Want to stand in line if you want to print out the label prepaid already slap it on there and then you just drop the box off at whatever drop-off location usps whatever i have one of these digital scales i bought this it can weigh up to i think like two pounds or something but if you have something heavier you can use your digital scale that you weigh yourself in

What you do is you weigh yourself first know how how much you weigh you carry the box that’s kind of heavy more than 2 pounds 10 pounds 20 pounds 3 pounds doesn’t matter you just carry it and then you stand on the weight thing and you know you just subtract your weight from the new weight and you get the the heavy weight that you need in order to plug into the

Either amazon or ebay and then with that you can print your postage slap it on and there you go off off you go you send it in and you get paid so i hope this helps you think about the total cost of owner shippo stuff whenever you buy something you should think about how much is it gonna cost you to own that for whatever length of time that you think you’re going

To use it if you’re going to use it for a really long time maybe you want to buy a brand new i don’t know it depends on the item for me certainly this is beat the bush i hope this video helps you think about how to lower your total cost of ownership of practically anything don’t forget to give me a like over here comment down below if you have a question about any

Of this and don’t forget to subscribe over here thanks for watching you

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How I Own Stuff For FREE: Minimize Cost of Ownership | BeatTheBush By BeatTheBush

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