From DIY deck remodeling to finishing the downstairs bathroom, there are quite a few home repairs you can do yourself with precision and exceptional cost-effectiveness. However, if you do go this route, you may lose money while thinking you saved it, and there are several reasons why. Let’s look at preventative vehicular maintenance for example.
If you can change the oil yourself, that should save you about $30 per oil change, right? But what is your time worth? Doing the job yourself will be at least an hour of your time, unless you’ve got either a crawl space beneath your vehicle or a means of hoisting it.
You’re going to get dirty, you’ll likely spoil the value of your garage and driveway by getting oil all over the place, and it may turn out there are certain strictures regarding petroleum waste disposal that you could be found in violation of and fined for, depending on where you live. Or, you can spend $40 and 20 minutes at the rapid lube. In fact, you can run another errand while your oil is changed.
If your time is worth $30 an hour, then you actually save money by going to the oil-change place, because you expand opportunity cost, and free yourself up to do more profitable things. It’s the same with a home remodel. If the time, effort, and energy you put into it reach a certain point, you save by outsourcing to professional contractors.
Situations Beyond Your Abilities
Additionally, you’re going to encounter situations which require fixing that is beyond your repairing ability. This is especially true with water damage. According to Restoration Elite, “Excess water in your home can cause expansive damage and can even lead to hazardous mold.” Now what if you spent hours replacing the sheetrock, drywall, wall-paper, and tiles in a room, only to discover you’d missed mold which a professional would have noticed naturally. Well, you’ve either got to pay professionals to get rid of the mold, or do the whole job yourself—either way, you end up paying double.
Conversely, say you do the job right, but it ends up taking many long hours which keep you from your family business, and therefore cut the incoming profits. Even though you think you’re saving, because you’ve deprived yourself of earning opportunity, you’ll pay a higher cost that will ultimately set you back more than hiring professionals would have.
Finding The Opportunity Cost Line
You’ve got to know where the line is when it comes to opportunity costs, because there are definitely some areas where to outsource would be a mistake. For example, if you’re installing a few modern sinks, there’s no need to contract outside help since such sinks are usually pretty straightforward to install.
Basically you will likely need an adjustable wrench and a couple screwdrivers. You may need a hose clamp or two, and perhaps some Teflon depending on the state of your pipes; but installing or removing a sink has a pretty basic nature to it. If you do this by yourself over twenty minutes, rather than paying a repair guy $90, you’ll save money.
Whether it’s installation, repair, or general maintenance, you have got to understand where the most cost-effective choices are. Take stock of your assets and determine what your time is really worth. Know what opportunities may be missed, and which ones may be enabled through working with either professionals or on your own.
Article Submitted By Community Writer