5 Expensive Things You Shouldn't Buy

[thstone]

Originally Posted by rupak447

Many people's financial troubles begin when they buy an expensive toy or a vacation home.

The buyers assume they'll save money because they'll own the items instead of renting them. While that might be true short-term, it rarely works out that way in the long run.

Here are five things you should never buy unless you're rich enough to stop working:

1. Vacation homes
2. Snowmobiles, jet skis and all-terrain vehicles
3. Recreational vehicles
4. Boats
5. Timeshares

What those items have in common is a proclivity for massive depreciation while requiring large cash inputs at the same time!

For example, having to put a new $2,000 power generator into your three year old $50,000 RV that is now worth $29,000.

If you have the means, then feel free to spend however you like, but if you don't have piles of available cash and strong future income, owning a quickly depreciating asset that requires large periodic expenditures (maintanence/repairs) is likely to be a huge financial mistake.

[lifeisgood]

all fun and game...until somebody files for bankruptcy.

[Mark_T]

If I waited until I could afford my boxster then I never would have owned one, as there is always some pressing expense that should take priority. To hell with that - I could get hit by lightning or a truck tomorrow and then the only people to benefit from my frugal ways would be my heirs.

I think you need to strike a balance between fun and responsibility and not take life too terribly seriously. Otherwise by the time you can afford your toys you will be too old to enjoy them.