Five Purchases People Later Regret
Think twice before making these long-term purchases!
Most of us have at some point made an impulse purchase that later became a huge regret. Whether it’s a pair of jeans or a even a Jaguar, the emotional high that a non-essential, emotional purchase brings can be thrilling then later comes the emotional low of realizing it was a costly mistake.
Minor mistakes can certainly be forgiven, after all we’re only human. But larger purchases and long-term decisions should take more care and caution, and even require a meeting with your financial advisor to determine the consequences of your desired purchase. Here are five purchases that people make that they most often regret:
1) Time Share– Owning a time share sounds appealing, with the option to swap with others and see the world, but there are countless fees associated with time shares, including ongoing maintenance. Furthermore, our needs and desires change over a lifetime and should you want to sell a time share, it is a nearly impossible task to accomplish. It would be a better idea to save your money to pay for your yearly vacation.
2) Extravagant Wedding– It can be a childhood dream to have a lavish wedding with family, friends and all of the extras. Many of us want to impress as well, offering a most memorable experience for all who attend. From flowers to food, going first rate will cost you greatly. If you decide to spend an amount for your wedding day that matches an average annual salary, you could delay your ability to buy a house along or even your retirement date.
3) Fashion Trends– Trends are everywhere, whether it’s fashion or technology. Most of us can’t wait for the latest iPhone or opt for name brand shoes and clothing. Does is sound sensible to spend $800 on a new pair of shoes or a handbag? If $800 were invested instead, it could turn into quite a sum of money after a decade, while your trendy purchase would depreciate or likely be worthless in that time frame.
4) New Car- Sinking into the seat of your very own brand new car is a great feeling, but as soon as you drive it off the lot, the car is worth less than you paid. It’s a good idea to purchase a used car instead of a new car. If you can save up and pay cash rather than make payments, that’s ideal. As for leases, they often require a large downpayment that you never see again and limited mileage in a specified time period, before returning the car.
5) Gym Membership– Expensive health clubs can be great if you’re taking full advantage of classes, lessons and work out equipment on a daily basis. But if you’re like the average person with a busy lifestyle, gym time often gets moved lower on the priority list. Many people go months without using their membership, promising themselves they will keep it active to get back in shape for a season or event. Make sure you’re making a smart decision with spending on gyms or you could be wasting money, despite your best intentions.
Most people do not realize that they can pay for a poor decision for years. Passing up that impulse purchase may not be too fulfilling immediately, but you will be thankful later for the sensible planning to get you to retirement and living comfortably in it.
If you have questions about whether you can afford a large purchase or for an assessment of your overall financial situation, contact Bayntree Wealth Advisors at firstname.lastname@example.org.