New vs. old


Every new thing will inevitably be old at some point. Especially when new innovations arise (the same item but faster/better/stronger), is there a good heuristic to decide if you should upgrade or not?

Every year there is a new iPhone. Every other year the new version is a substantial improvement.

What is the most economical upgrade-plan to not miss out on substantial improvements?

Is there a sweet spot to sell an outdated item to buy a new one without losing much money? Should you wait for a big improvement or just upgrade with every new version?

This depends on how much more value the new item will probably bring you. The price of the new item is reduced by the amount of extra value you get from it.

Value adjusted price = price - value

So if a new item costs 1000€ and it is 10% nicer than your current one, it’s value-adjusted price is about 900€. I think if you can sell your old item for the value-adjusted price of the new item it certainly is worth the upgrade.

Upgrade if value adjusted price of new item <= sales price of old item

The real problem now is that I have no idea of how to actually determine the value the new item will bring you before using it.

Maybe rather than upgrading for features, we should upgrade because of pain. The pain of using the item is at least quite measurable as we experience it right now.

Pain adjusted price = price + (hours in pain * wage per hour)

If you could sell your current item for 1000€, and your pain is worth 100€ it actually is worth 1100€ for you to get rid of it. This assumes that the pain will be reduced by the new item.

Upgrade if price of new item <= pain adjusted price of old item

Most new features are irrelevant, but reducing actual pain is worth your money.

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