3 Luxury Purchases You May End Up Regretting
Money can’t buy happiness — and spending an exorbitant amount of money on an item you later regret can teach you that the hard way.
While making flashy purchases is understandably tempting, big-ticket items can drain your savings for long-term goals such as retirement. It can also lower the amount of money you have to spend on things that may become more important to you later in life, like traveling for quality time with your family and friends.
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Luxury purchases you may regret later
Here are three luxury purchases that will tempt you to swipe your card, but that you may regret down the road.
1. The fancy car
Expensive, high-end cars attract eyes on the road, but they also may not be worth the cost. A fancy car will require maintenance and repair costs just like an ordinary car, and if you focus on buying an expensive car with impressive features instead of features that will actually improve your driving experience — like fuel efficiency — you may not get what you need with the purchase. You might also have to pay more in insurance than you would with a less expensive car.
Remember that a car’s value depreciates significantly the moment you drive it out of the dealership. A used or less expensive vehicle can probably offer what you need with a smallr bite out of your budget.
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2. The too-big house
A house is the largest purchase many families will make, and it’s important to choose one that fits your needs and budget. While buying a mansion may be tempting, large homes 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 smaller, less-expensive home provide all you and your family need. A smaller house can come with a lot more financial flexibility, putting more money back in your pocket to pay for vacations and other wants.
3. The expensive membership
Membership to exclusive country and yacht clubs are enticing, but they can also take a huge chunk out of your budget. And that’s not money you’ll get back later by selling, like you could with a house.
Before buying one of these memberships, consider how often you are likely to go to the club and whether the club has offerings you can’t get elsewhere at a lower price.
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How to avoid purchases you’ll regret
Focusing on experiences and traveling can be more rewarding — and more affordable — than the fancy car, large house and expensive memberships that may be out of your budget.
Before making a purchase you may regret, consider what you could buy instead with that money. For example, if you opt for a smaller, less expensive house, you may be able to afford to hire cleaners and lawn care. It’s also critical to consider what extra costs are coming with the purchase that you may not be considering, like taxes and insurance.