7 things with hidden costs
Sometimes the purchase price is only the beginning of what you have to pay. Here we’ve have rounded up seven things that you should think twice about.
1. Swimming pools
Specials and advertised prices are tempting – but there’s a lot of required construction costs that may not be included in the deal. Building retaining walls, extra concrete sidewalks, landscaping and fencing may add on extra bucks to your initial purchase price. It can also cost a lot just to operate a pool each year when you factor in the chemicals, maintenance, repairs, utilities and water.
2. Leasing a car
Leasing a car may seem like a great way to drive a more expensive car with a lower monthly payment. However, there are also hidden costs in mileage limits and damage fees that can add up when it’s time to return the car.
3. Cruises
The advertised price for the cabin booking won’t include the hidden costs and extra services. Cruises often have overpriced drinks, costs for shore excursions, spa services, fitness classes, phone and internet usage and alternative dining.
4. Home and contents insurance
Purchasing home and contents insurance is a good idea, and will help relieve stress over covering future repairs. However, double-check the fine print to see what’s actually covered. If a problem requires more than one repair service, you may have to copay for each specialist. There are also maximum coverage limits and pre-existing conditions in older homes may not be covered at all. Other items, like gas fireplaces or appliances, may be excluded entirely.
For contents insurance, you may need to specify your laptop and phone, as they are not always covered by general or miscellaneous valuables insurance. There is also a limit of the value of general items covered by the insurance. If you have something that exceeds the limit you may need to specify that separately.
5. Bundled services
There are often discounts and limited offers for bundled services, like subscription TV, or internet and phone plans. However, be prepared for activation fees, installation fees, box and modem rental fees to be piled up on top of the initial cost.
Also, if you experience problems with your service, you may have to pay service call fees.
And if you want out early? There are heavy cancellation fees to factor in too.
6. Banking services
Banks often charge overdraft fees, monthly maintenance fees – and let’s not forget about ridiculous ATM fees when you use another bank’s ATM. If you’re travelling abroad, you might be charged with using a foreign bank’s ATM.
Banks may also charge to send you paper statements. Most banks will let you switch to online statements that you can check whenever you want at no cost. These statements go back 7 years and can be searched much more efficiently. There is no difference between a printed out e-Statement and a paper statement mailed to you.
7. Assisted living
Unfortunately assisted living comes with unexpected add-ons, and the real cost of living in these facilities may be higher than an initial estimate. Make sure there aren’t any additional personal care services, like providing transportation services that come at an extra charge. For some people, in-home care may be cheaper for those who want to remain in their own homes but need extra help.