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While many people prematurely get rid of perfectly good computers, the time can come when the point of diminishing returns has been reached. Generally speaking, this is when the amount of money spent rebuilding “Old Faithful” comes close to or equals what it would cost to simply buy another computer.

Even new computers have hidden costs, though, as you usually still have to pay extra to install antivirus software, as well as productivity programs such as Microsoft Office or Photoshop. Then, you have to figure out how to get your files from your old computer onto the new one. Only then can you plan how to gracefully put your old war horse out to pasture. Here’s a list that may be helpful to you.

1. Back up your files for use on your new computer. Your old computer likely has many files that you’d like to keep, such as letters, photographs, videos, emails, songs and financial files generated by programs like QuickBooks and TurboTax. I’m not a big fan of automatic backup or file transfer programs, although some folks like them a lot. Exceptions would be online backup services such as Mozy or Carbonite; I think that it’s a very good idea to maintain backup files that are housed somewhere other than in your own home or place of business.

Be aware that some of the files that you want to backup may not be in the My Documents folder. Quickbooks and TurboTax often store their files in proprietary folders located in obscure places; the same goes for email, browser bookmarks/favorites and some digital camera programs.

Whether you backup your files to CDs/DVDs, an external hard drive or an online backup service is often a matter of personal or financial preference. Any of these ways will be fine for the purposes of getting your old files onto your new computer.

2. Gather together all of the program installation disks for software that you want on your new computer. Many older programs, such as Microsoft Office 2003, will work just fine on your new computer; there’s no need to buy a new version. The problems that I most often see are incompatibilities between new computers and older hardware, such as printers, scanners and cameras. Make sure that you have compatible drivers and program disks for all of the older external hardware that you want to use with your new computer.

3. Securely erase and/or destroy your old hard drive. The hard drive in your old computer may contain sensitive personal, medical or financial information, or it may simply have things on it that aren’t anybody else’s business. You don’t want this information falling into the wrong hands when you discard, recycle or give away your old computer.

4. Now that your computer is ready for the PC graveyard, weigh your options. Some items can safely be tossed in the trash. Other items, like monitors, should not be tossed in the trash, as they may contain lead and other toxic chemicals. Sometimes, guys like me can recycle parts from your old machine, or repair the computer and give it to someone that needs one. Agencies such as Amvets, Goodwill and The Salvation Army may also take Old Faithful off of your hands.

Computers are like cars: they may serve us well, but they just don’t last forever. Plan ahead and make the transition to a new computer as painless as possible.