In general, buying electronics is not a very good investment. Spending large amounts of money on your music system gives you some bragging rights and hopefully a very nice sounding music experience. The equipment you buy today will last you 20, 30 or even more years. It will still play the music just beautifully. Buying a computer on the other hand is not at all like that. The best example is buying an Apple computer. Let’s take the Apple laptop costing $1500 and compare it to a $500 laptop. What do I get for my $1500? Based on most Apple buyers opinion, you get a very well-built laptop. One that taken care of should last for many years. In addition, it may have some resale value if you should ever want to sell it. And of course, you get the OSX software. That discussion I will leave for others. I am not going to include any other costs in this example. After three years, in computer terms, I have a very old laptop. Many new innovations are available that I would love to have. Because I am so heavily invested, $1500, I am very reticent to let go of my old laptop. In fact, I feel obligated to keep this until it dies. And that may not be for many more years. So I hold onto my old laptop well beyond its useful life.
Now let’s take that $500 laptop. It is by no means of the highest quality. By the time three years comes around. It very well could be at the end of its life. What will be available, at that time, will be a far more powerful computer, lighter, with all the latest innovations for less money. Because I am not indebted to a large investment, I have no problem letting go of my old laptop. With the new computer, I am much more productive and have saved a substantial amount of money.
Let’s take this example. I have $1500 to spend over three years on my laptop. I spent all of it upfront on a Apple laptop. After three years I have an old outdated computer. Even though it may physically still run, it is in computer terms an old computer. Instead, I spread that money over three years. Each year spending $500 on a brand-new laptop. At the end of each year I sell my laptop for 50% of what I paid, which in fact is probably very low. At the end of three years, I have a brand-new, latest and greatest laptop and $250 in my pocket. To me, the computer is just a bad investment. It doesn’t matter what kind I buy, or how much I spend. At the end of the day they are boat anchors and I don’t own a boat. I would much prefer to have a garage full of $500 boat anchors then $1500 ones.