Step 1
Start with the same ownership brief
Two fictional yachts appear suitable for the same couple’s weekend sailing. Yacht A is advertised at $90,000; Yacht B at $105,000. These figures and every allowance below are invented to explain the arithmetic. They are not quotations, valuations or representative Australian ownership costs. Neither candidate is a named listing.
Step 2
Make the inputs comparable
For A, the example allows $3,000 for investigation, $18,000 for immediate work, $12,000 for recurring first-year costs and $10,000 retained as a reserve. Its total cash allocation is $133,000. For B, the same categories are $3,000, $5,000, $12,000 and $10,000: a $135,000 allocation. A $15,000 difference in purchase price has become a $2,000 difference in this simplified plan.
Step 3
Interrogate the biggest assumption
The immediate-work allowance is where the result can change quickly. Does A need one sail or a full wardrobe? Is the machinery budget a diagnosed repair or a hopeful placeholder? Has the survey defined the work, or recommended further investigation? List unresolved items outside the confident subtotal. Do not hide them inside a small contingency and describe the budget as complete.
Step 4
Stress-test without predicting the future
If A’s immediate-work input increases from $18,000 to $28,000, its allocation becomes $143,000, now $8,000 above B’s original example. This is a sensitivity test, not a forecast. The same exercise must be applied to B. A newer or more expensive yacht can also have an incomplete history and unexpected work.
Step 5
Separate reserve, spending and time
The reserve is cash held back; it is not automatically spent. Work also takes time and may incur repeat lifting, storage or travel that the original allowance missed. Record where the yacht stays and when you can actually sail it. A boat requiring several months of coordination may be a poor choice for someone whose main aim is sailing this season, even if its final cash cost is lower.
Step 6
Replace every invented figure before deciding
Use the linked budget worksheet with your own investigation quotes, scoped repairs, berth terms and insurance offer. The example excludes finance, depreciation, delivery and anything not entered. It assumes equal recurring costs for demonstration, not because real yachts cost the same. Keep source, date, inclusions and uncertainty beside every significant amount.
3 QUESTIONS FOR THIS TOPIC
Questions about this example
Is $12,000 a typical annual ownership cost?
No. It is an invented input chosen for this arithmetic exercise. Your berth, yacht, use, insurance and maintenance requirements determine your budget.
Does the reserve count as an annual expense?
It is included in the cash you need available, but is not treated as an invoice already incurred. Track actual spending separately.
Should I always choose the more expensive boat?
No. Compare suitability, evidence, total commitment and uncertainty for both. The example challenges a purchase-price-only comparison; it does not establish a winner.
YOUR DECISION RECORD
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References and scope
These sources provide relevant background. They did not produce or approve the fictional example above.