Buying expensive things is the fastest way to deplete your bank account. Most of these are also impulse buys and add nothing but a status symbol. If you want to get the most out of your money, here are seven things you should definitely live without.
- Recreational vehicles
An RV is fun, but what will you do with it once your trip is over? It will only cost you more money in parking and storage on top of gas and maintenance. Renting one for your next vacation is the smarter thing to do.
- A new car
The price of your new car drops the moment you drive it off the dealership lot. You cane xpect around 20% loss in depreciation on the first year of ownership alone. Get a used car and let someone else absorb the initial loss.
Is there anything more complicated than a timeshare vacation home? It is a property with divided ownership or rights of use. Owners can redeem points for stays at various properties but are required to pay the full cost of property maintenance to the cost of thousands of dollars annually.
- Designer clothing
Are you really willing to pay a ridiculous amount for the brand name and bragging rights? It makes more sense to buy quality clothing at an affordable price and invest or save your extra money. Designer clothing may be impressive today but it will not make you richer.
- An expensive wristwatch
No matter how cheap your watch is, as long as it tells the time, then it is doing its job. Expensive timepieces will not buy you more time. It falls back to prestige and bragging rights again. Would you rather have an impressive watch or be wealthy in retirement?
- Grown-up toys
Jet skis, snowmobiles, and ATVs spell fun for adults but only briefly. Most of these grown-up toys will stay in your garage for longer periods. To start, they cost a lot of money, not to mention periodic servicing by a mechanic. If you rarely use them, your money is only wasted.