3 Luxury Purchases You May Regret
Money can’t buy happiness – and spending a lot of money on something you’ll regret later can teach you that the hard way.
While buying luxury items is understandably tempting, big-ticket items can deplete your savings for long-term goals like retirement. It can also reduce the amount of money you have to spend on things that may be more important to you later in life, such as spending quality time with family and friends.
It’s a luxury purchase you may regret later
Here are three luxury purchases that will tempt you to swipe your card, but you might regret it down the road.
1. A luxury car
Expensive, high-end cars attract attention on the road, but they also may not be worth the cost. A luxury car will require the same maintenance and repair costs as a regular car, and if you focus on buying an expensive car with impressive features instead of features that will improve your driving experience – like fuel economy – you may not be getting what you need from the purchase. You may have to pay more for insurance than you would for a less expensive car.
Remember that a car’s value drops significantly as soon as you take it out of the dealership. A used or less expensive car can give you what you need with a small bite out of your budget.
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2. A very big house
A house is the biggest purchase most families will make, and it’s important to choose one that fits your needs and budget. While buying a mansion can be tempting, big houses are more expensive to maintain, take more time to clean and can come with higher property taxes.
Being efficient with the space you have can help a small, affordable home provide everything you and your family need. A tiny house can come with more financial flexibility, putting more money back in your pocket to pay for vacations and other things you want.
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3. Expensive membership
Memberships to exclusive country and yacht clubs are tempting, but they can also take a big chunk out of your budget. And that’s not the money you’ll get later on selling, like you would with a house.
Before purchasing one of these memberships, consider how often you are likely to go to the club and whether the club has offers that you cannot find elsewhere at a lower price.
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How to avoid making a purchase you’ll regret
Focusing on experiences and travel can be more rewarding – and less expensive – than a fancy car, big house and expensive memberships that may not be in your budget.
Before making a purchase that you may regret, think about what you could buy with that money. For example, if you choose a small, inexpensive house, you may be able to hire cleaners and lawn care. It’s also important to consider what additional costs come with the purchase that you may not be thinking about, such as taxes and insurance.
