Not Being Cheap, It’s Being Smart

I have been thinking a lot lately about how our society looks at old things. Somewhere along the line, we were taught that if something gets old, you throw it away and buy a new one. A new car every few years, a new appliance when the old one needs a repair, a new phone because a newer model came out.

I never bought into that way of thinking.

To me, there is a big difference between being cheap and being smart. Being cheap means refusing to spend money even when it makes sense. Being smart means looking at the facts, doing the math, and getting the maximum value out of what you already own.

I can hear people now saying, “Come on Rich, that van is 17 years old. It’s time to get rid of it. You can afford to buy a nice new van.”

And my answer is simple: Why?

My 2009 Chevy Uplander cargo van only has 85,000 miles on it. I have already rebuilt the transmission and repaired the power steering problems, which are two of the major expenses that often put these vans out to pasture.

So now I have a paid-off van that I know inside and out. It starts every day, hauls exactly what I need it to haul, and does its job without a monthly payment attached to it.

Could something else break? Absolutely. That’s what machines do. But if I spend $1,000 or $2,000 a year keeping it on the road, I am still way ahead of someone spending $700 or $800 a month on a vehicle payment, plus higher insurance, taxes, and all the other costs that come with buying new.

I think our parents and grandparents understood something that we have lost. They repaired things. They maintained them. They took pride in making something last. They didn’t throw away a good machine just because it had a few years on it.

To me, it’s exactly the same as that old hammer or pair of Channel Lock pliers sitting in my toolbox that belonged to my dad. Sure, I could go out and buy a brand-new one, but why? That old tool still does exactly what I need it to do, and frankly, many of the new ones are not made with the same quality and craftsmanship anymore.

Every time I pick up that old hammer or those pliers, I am also holding a little piece of my father’s life, his hard work, and the lessons he passed down to me. Some things have value that you can’t put a price tag on.

Now, I’m not saying never buy new. There comes a time when something becomes unsafe, unreliable, or the repairs simply don’t make financial sense. That is when you move on.

But replacing something just because it is old is not always a sign of success. Sometimes it is a sign that we have stopped doing the math.

I think one of the biggest mistakes people make when they become financially comfortable is believing they now have to prove it by constantly buying newer and more expensive things. To me, real wealth is not about showing people what you can afford. It is about having the wisdom to know when you don’t need to.

So the next time someone says, “Rich, when are you finally going to buy a new van?”

I’ll smile and say, “Maybe when this one gives me a good reason to. Until then, I’ll keep putting my money where it works harder for me.”

Because it’s not being cheap…

It’s being smart.