Future loss to present cost ratio

Okay – so I have nothing better to do on a Sunday morning than think about this. And yes – I do ‘have a life’!

Some advert came in from Argos on new TVs. I don’t even need a new TV. I click on the advert and came across a 75-inch  Samsung  TV  for  £900(£899 – if you have OCD).

Right – so there is a story about my two TVs.

My first TV was from Richer Sounds about 8 years ago at a cost of £699 (with 6-year warranty included in price). It was a plasma 50-inch TV screen. The screen developed problems at year 5.5. They replaced it with a brand new LED TV that was slightly bigger and better specification at no cost under their 6 year warranty. It’s going well and I have not felt a need to replace it. My future loss here is £699.

My second TV (no longer available) functions as my computer monitor. It was purchased on 19 Feb 2017 at £649 again from Richer Sounds with a 6 year warranty included in that price. It’s brilliant. I can stream my Neflix, Amazon and some online TV channels. This TV would have minimal or no resale value to today. So my loss on future value is say £649.

Now I could have bought much higher spec TVs i.e. 4K this and that for say £6K to £8K. That’s not an over estimate at all. 8 years ago a 4K TV of same screensize would probably have been £6K. Then 3 years ago a 49 inch 4K would have been around 2 to 3K. So – call that ‘present cost’ or projected present cost. But that projected present cost is a greater projected ‘future loss’. Tons of people are now totally confused. I just know it.

So by not spending excessively on high-end TVs, I’ve avoided a loss of £6000 – £1350 = £4650. So my ratio of  ‘future loss’ to present cost (at time of purchase) is 4650/1350 = 3.4. That’s fine for me. It may not be fine for ‘everybody’ else.

Now if either or both of my TVs go on the blink, I can get something much better in terms of specification. But again, I would not purchase at the high-spec end of the market. It’s just a waste of money for ‘feel-good’ factor.

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The reading of posts on this blog is subject to the Terms & Conditions. Unpalatable truths and personal experiences may be told. Nothing posted on this blog is directed at any identified person. On occasions individuals are quoted anonymously. That does not mean that they have been identified to the world. Should any person or organisation reading this blog find something that makes them feel or know that they  are being referred to – any such perceived identification does not mean ‘identified to the world’. ‘Stupid‘ is an impish figment of my imagination who occasionally is allowed to pop up – and does not represent any known individual, individuals or groups. The treatment of  ‘Stupid‘ is not representative of the way people are treated in real life. Adverse inferences made are dismissed in advance.  

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