Explain  what the opportunity costs of your purchase were. In the end, was it worth it? Why or why not?

In making the purchase of a new car, I had to consider the opportunity costs associated with this decision. First, I had to weigh the cost of buying a new car against what I could have done with that money instead; such as saved it or invested it in other areas. Additionally, I needed to take into account that since my income was limited at the time, an increase in spending on a big ticket item like a car meant that there would be less money left over for saving and investing towards my future financial goals.

The opportunity cost also included taking into account other lifestyle changes that may result from me buying a new car – such as having fewer funds available for travel or leisure activities due to higher ongoing expenses associated  with owning/maintaining a vehicle compared to not having one.

Ultimately, after taking all these factors into consideration, I decided that it was worth it for me and my family because we needed reliable transportation for our daily commute and errands; so the convenience of having access to our own vehicle outweighed any potential long-term economic losses due to slightly higher monthly expenses associated with ownership.