AMC: Boon or Bane?

[Subcenter2009]

Dear friends,

Many electronic items, which once could be had only from abroad are now freely available in India.

Pricewise, there does not seem to be much of a diference in costs.

Plus, there is a sense of security that the item won't be damaged.

Also, there is the extended warranty option on availing an Annual Maintainance Contract. (AMC is the jargon lingo)

While those with a hand to mouth existence which I suspect most of us are when we put together every last coin from the piggy bank to bring home the latest fad, can gloat over our recent purchase for a little while..

We are soon confronted with a new recurring expense.

The AMC.

Consider the following selections of Household expenditures..
Provisions.
House rent
Maintenance deposit for flats.
School and college fees.
Property Tax
Water Tax
Income Tax
Profession Tax
Sales tax
VAT
Electricity Bills
Telephone Bills
Mobile Bills
Cable/ Tata SKY bills or both.
Paper bills
Milk
Mineral water
Painting and dusting
Maid(s)
Newspaper Bills.
Fuel for vehicles
Repair of Vehicles
Medical expenditures
Religious donations.
Gifts for functions
Outstation Travel.
Local Travel
Business expenditure
Flag Day
Festivals
Repair of Household goods.
Regular replacements like bulbs etc.
+++lots more I have left out in my hurry.. (other members can add):lol:

Now how many things in our everyday lives require AMC?
Just sample this:
42" LCD TV: 4.5K
Split A/C: 2.5K (each)
Computer 2K
Washing Machine 2.5K
Microwave 1.5K
Dishwasher 2K
Eureka Forbes
UPS for computer battery replacement 1.5K
Window A/C 2K (each)
Scooter 1K + oil changes
Believe it or not..Telephone landline AMC:clapping:
Car
Watches
Treadmill
Internet connection
Water supply motor
Jet pump
please add more if I have not thought of such other expenses in my post.

All these items can be affordable seperately, but together, they are murder as most of our income is spent on such recurring expenditures.

Also, An AMC on an A/C does not mean they will do a satisfactory job while servicing, in fact, usually one has to run behind the staff to get the service done and it is usually not to our satisfaction.

Also, people who have a little technical Knowledge often are dumbfounded at the explanation given by the so called service staff on the working of their precious equipment. It can sometimes be quite hilarious.

Either they take us for idiots or they are idiots in disguise..

It is always a command: "Pay up or else"!

15-20 years back there were maybe no things that require an AMC.

Now an AMC needs an AMC.(its coming to that)

Hope the companies raking in the moolah with forcing innocents to cough up insane amounts by AMC have a change of heart:yahoo:

Hope.

Subcenter2009

 

[gobble]

You forgot one more form of AMC

The medical insurance you pay is actually a form of AMC where the doc promises to either fix or replace your broken parts and organs for free in return for a steady fee paid to the insurance co, called the premium

Cheers

 

[Subcenter2009]

Yes, you're right.

But how many of us have peace of mind after having taken a medical insurance policy?

I think, please don't be angry, that any money we can spare has to be invested in immovable assets like land or a flat because if someone gets sick, (I mean really serious) the hospital expenses will blow one's savings in no time flat if it is saved as cash. But one might hesitate to sell one's property to treat a terminally ill person.

I know that it's cruel

But one has to look in the long term about one's future, which will be tough if all his money is in the bank.

Sorry for bringing out the truth,

Subcenter 2009

 

[kaushik]

Laptop battery n others laptop maintenance 5 -6K/year.

However what about wife ... $$$$....tend to infinity.

 

[gobble]

Yes, you're right.

But how many of us have peace of mind after having taken a medical insurance policy?

I think, please don't be angry, that any money we can spare has to be invested in immovable assets like land or a flat because if someone gets sick, (I mean really serious) the hospital expenses will blow one's savings in no time flat if it is saved as cash. But one might hesitate to sell one's property to treat a terminally ill person.

I know that it's cruel

But one has to look in the long term about one's future, which will be tough if all his money is in the bank.

Sorry for bringing out the truth,

Subcenter 2009

Yep this is an exploitation cycle in the modern world few people want to talk about

Better to have non-liquid assets. The only liquid assets I maintain are a bottle of Red Label johhny walker ...

Cheers

 

[dvdmk]

any money we can spare has to be invested in immovable assets like land or a flat because if someone gets sick, (I mean really serious) the hospital expenses will blow one's savings in no time flat if it is saved as cash.

But one has to look in the long term about one's future, which will be tough if all his money is in the bank.



Very True , Cash in Bank depreciate over a period of time, invest part of the Amount in land, part in shares rest in Government securities , LIC etc. Just like spending 30% on amp 30% on spk 30%on Source and 10%on cables hyeah:

 

[Subcenter2009]

Dear friends,

My sincere apologies.

How bad of me to say those things.

Our relatives and friends are there 24 hours a day to help make this world go round.

Our parents don't ask why. They just make sure that the children get the best they can afford.

Whatever we are is because of them.

We can read and write and speak all those bad things because they devoted all their time for us.

At our bedside whenever we are unwell.

If the members permit, I would like to say I'm sorry for my old statements abt investing all our cash in permanent assets to prevent all of it from being spent.

Leave alone Mediclaim etc., I will be there as long as my heart beats for my folks. Every last paisa when they are in need.

We can make more money later..

Human life is the most precious thing on Earth and other things are secondary.

I'm terribly sorry for writing that.

Subcenter2009