5 Expensive Things You Shouldn't Buy

[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

[Stroked & Blown]

Wow, this is a random topic.

However, a friend of mine has a relevant anecdote:

If it flys, floats, or fu**s.......rent it.

[Lobo1186]

Indeed a random topic. However, I would whole heartedly disagree with most of it. Sure vacation homes is more true than the rest but this is all relative. You do not have to be "rich enough to retire" to buy an all terrain vehicle or a jetski. In fact all you need is an expendable income that can pay for those things. Would it wiser to invest all extra income for later... of course but hey you only live once.

[t2-bxtrs]

Hey I can only agree !
If you think you can afford it , go ahead and do it... nobody can say how or when you want to spend your $$$$... You only live once ! What's the point of saving and saving for what? when you are too old to eat what you want or drive what you wish ?? As long as you know what you're getting into.. just be yourself..
Life is toooo short ! Look at what happened in Japan, one of the worst Natural Disaster in history.... poor souls i can only symphaties... You cannot take anything in your Grave.. So enjoy , These are just material things that will come and go!

[Flavor 987S]

If you can't pay cash, don't buy it.

*Maybe only a home mortagage......and a very small one at that.

[jwade]

Originally Posted by Flavor 987S

If you can't pay cash, don't buy it.

*Maybe only a home mortagage......and a very small one at that.

I agree with that statement...it's kept me from doing things outside my means for a long time.

A mortgage is pretty normal for most...Just try not to finance toys as they are depreciating items...

[ProjectM96]

Jetski's are not expensive.
I got two for $4,000 at the auction. Payed off after 1 year. No repairs needed since I got them 10 years ago. Cheap and easy to maintain. A license only costs $50 in most states.

[vath2001]

I agree with the "not buying" vacation homes and time shares... unless you really use them. We own a boat and its a summer cottage for us, spend many weekends on the lake. However, there are quite a few boats on the lake that never see any use. We recently bought a Waverunner... and will use it every other day.... once Ohio thaws out.
And this is a Boxster Forum... talking expensive toys. "Expensive" is relative to your income and debt level.

My thoughts.... not yours

[Perfectlap]

I take that much farther

1- don't buy real estate in high income high tax states.

2- don't spend a lot (depending on income) in low income low tax states

3- don't buy new cars

4- don't finance the purchase of new cars

5- don't buy luxury items (over-priced Swiss watches, jewelery, etc.)

6- don't use credit cards (you will never sign onto a worse deal in writing)

do

1-invest in your retirement before paying for any of the above.

2-buy precious metals

3-sell things you don't use.

4-start a business in your spare time revolving around something you have an interest in even if it means making only a few sales.

5- pay cash for everything - you will always buy less from gas to food to clothing, etc.

[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.

[jcb986]

Originally Posted by Perfectlap

I take that much farther

1- don't buy real estate in high income high tax states.

2- don't spend a lot (depending on income) in low income low tax states

3- don't buy new cars

4- don't finance the purchase of new cars

5- don't buy luxury items (over-priced Swiss watches, jewelery, etc.)

6- don't use credit cards (you will never sign onto a worse deal in writing)

do

1-invest in your retirement before paying for any of the above.


2-buy precious metals

3-sell things you don't use.

4-start a business in your spare time revolving around something you have an interest in even if it means making only a few sales.

5- pay cash for everything - you will always buy less from gas to food to clothing, etc.

Perfectlap...you left out...Don't get married, rent a hooker.