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Household Finances

to purchase or not to purchase - that is the question

15 years ago

If we know that we will need to replace our ancient computer within 6 months to a year, should we get one now while computers are rather cheap, or should we continue to hang on to those dollars in our savings? We can easily afford $600 to $700 without going in to savings or financing it. However, like most people these days, we are keeping all spending to a minimum.

One of the issues with the computer is that we also have an old printer for which it is hard to find cartridges, and our computer is too old to install modern-day printer software.

I guess my question is, would it be more prudent to buy it now while they are cheap, or risk the price spike if we wait until later? Having a computer is convenient for me, as it allows me to frequently work from home. However, my employer does not require it.

Comments (16)

qdognj
15 years ago
Why wait? Unless the 600-700 dollars is important to your current financial situation,take advantage of the opportunity the economy is providing you..And by spending,you'll be "helping" the economy recover...
Ideefixe
15 years ago
You can deduct it, so might as well. Buying when prices are low makes sense.
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As a practical matter, it sounds like she is selling it to you more out of neighborliness than the $500.00 purchase price because the small parcel did not add value to her property and would add value to yours. The expense of the partial release was probably as unexpected to her as to you. You said that it doesn't make sense economically to pay, $1800 for such a small piece of property, and that may be true, but it makes even less sense for her to pay $ 800.00 in order to sell it to you for $ 500.00. Now as a legal matter, as a general rule (there are rare exceptions) a contract to sell real property has to be in writing to be enforceable and would typically provide for clear title in which case she would be required to pay for the partial release. But you don't have a written contract and to force the issue would cost even more. And frankly isn't worth the turmoil that comes from disputes between neighbors. Here's an idea: Tell her that this expense was unexpected to you and suggest that that if you go ahead and pay the release fee if she will agree to accept "trade" electrical/caretaking/whatever for the $500.00 purchase price. That way you're only out of pocket for an extra 300.00. Your other option is to just walk away and tell her you didn't expect this additional expense and it's just too much for to pay. Once you open the door on the subject, she may volunteer some other solution. But really it sounds like you've been a good neighbor and she is trying to be one too, but you both have just run up against an unexpected snag. Regardless, I would tell her about your concerns about the electrical work in the barn - I bet she has no idea how bad it is. Good luck with whatever you decide!
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triciae
15 years ago
If you can afford the computer/printer without plastic & it won't set you back with your savings plan...by all means make the purchase. Financial prudence does not mean stopping life nor living like a mole inside your house for fear of leaving home & spending money.

Everything in moderation...even lattes.

If you get a new computer...may it not have Gremlins living under the task bar! :)

/tricia
jeff8407
15 years ago
Remember Moore's Law: computer technology doubles (is outdated) every 18 months. Whatever you buy will be a generation old in a year and a half.

The above being said: if you need a computer buy one. Dell and HP are both having great deals now.
arizonarose
15 years ago
I agree with all of the above...get a new computer! It will help the economy to spend.

ideefixe , how is it deductable If it's for home personal use?
pdg777
Original Author
15 years ago
I guess "helping" the economy is one way to look at it that I hadn't considered. Thanks for all your input. I'm still undecided but it helps to get others' thoughts.

Yes, ideefixe, how is the computer deductible? I surely didn't think it would be, as my employer does not require it, it's just necessary if I want to work from home. But it will definitely be used by the household for personal stuff.
qdognj
15 years ago
it isn't deductible
western_pa_luann
15 years ago
I agree... no deduction.
stargazzer
15 years ago
I agree with Trisia everything in moderation. I don't know how old you all are but I am 72 and I have saved, cut corners, used coupons and done without things to save for our Golden Years. They are here now and I am going to enjoy the rest of my life instead of saving for something that may never happen. Oops there goes the moderation thing. LOL
Nancy in Mich
15 years ago
Right, no deduction. For an employee, it is only deductible if your employer requires it. A contractor, on the other hand, can deduct it if it is used for work mor than 50% of the time (if tax law hasn't changed and I remember right).
kittiemom
15 years ago
I agree, go ahead & buy it.
Ideefixe
15 years ago
If you're working from home, your employer doesn't require it? How could you do the work without it? I'm a freelancer, so everything's deductible in my world. Do you do any other work with it?
western_pa_luann
15 years ago
Being a consultant allows for more deductions than being an employee.

In her case, no deduction.
pdg777
Original Author
15 years ago
Ideefixe, working from home is an option, but I can't do it all the time. It's allowed no more than 2 days a week.

And yes, we do other personal, family stuff on the computer.
chris8796
15 years ago
Buy it, I didn't really need one and bought one because the price was too good. I was thinking about upgrading my 4-5 yr old computer and started looking. I ended up getting a very nice desktop (w/o a monitor) at Dell Outlet for $326. I've seen plenty of sub $500 systems with monitors available, just watch a few of the "deal" websites.
joyfulguy
15 years ago
Got any semi-marketable skills ... that could bring in a few dollars this year?

Start a home-based business.

Then it becomes deductible ... if you (could) use it for the business.

ole joyful

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