Glossary

Short, plain-language definitions of the terms used across Beadvices.

Break-even point

The point at which the cost of buying something equals the cost of the alternative, such as renting; using an item more than this many times means buying is the cheaper choice.

Reversibility

How easily and cheaply a decision can be undone; low-stakes reversible choices deserve little deliberation, while irreversible ones warrant more care.

Self-insuring

Choosing to cover a possible future cost from your own savings instead of paying a premium for a warranty or plan — often cheaper on average for low-value, replaceable items.

Sunk cost

Money or effort already spent that cannot be recovered; it should not drive a current decision, such as repeatedly repairing an appliance just because you've already paid for past fixes.

Total cost of ownership

The full cost of owning something over its life — purchase price plus running, maintenance, insurance and depreciation — not just the sticker price. Weighing it is central to repair-or-replace and rent-or-buy calls.

Unit price

The cost per standard measure (per litre, per 100g, per item) rather than per package; comparing it reveals whether a bulk or bigger pack is genuinely cheaper.