Avoid the potential buyer’s remorse and skip purchases people typically regret.
Money is tight for a lot of Americans right now. As of May 2021, there were 9.3 million people unemployed in the US. Even if you weren’t impacted by the pandemic, who wants to waste money that could be better spent? Here are some purchases people typically regret making.
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Extending a warranty.
Some electronics and appliances are big purchases. You might think that the financially responsible thing to do is to purchase an extended warranty to protect your expensive investment. However, extended warranties for these items is almost never worth the cost according to Consumer Reports. “Today’s appliances are fairly reliable,” says home expert with HomeAdvisor.com Dan DiClerico. “The chance that your refrigerator or dishwasher actually needs a repair during the extended warranty period is pretty low.”
Extended warranties for cars isn’t recommended either. “The fact is, extended warranties are overpriced. That’s the reason people sell them, because they make a bundle on them in commissions,” says money expert Dave Ramsey. “I don’t recommend buying extended warranties, ever.”
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Buying a boat.
Boats are expensive, but they are also incredibly expensive to house and maintain. As a boat owner, you will also need to pay taxes, transportation and insurance. Make sure you are aware of the full cost of owning a boat before you buy.
Also take into account how frequently you plan to be out on the water. If you only go out a few times a year, consider renting a boat for a few hours instead.
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Purchasing a timeshare.
You should not see a timeshare as an investment. It is not the same as purchasing an investment property or vacation home. A timeshare does not generate income or increase in value. They are also expensive. You are expected to pay the initial loan plus interest and cover annual maintenance fees for property upkeep.
In addition, owning a timeshare means having to plan the same vacation each year. There are also only certain times you can access the property.
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Going over budget on a wedding.
Weddings are expensive. Some venues require minimum spend, vendors charge more when providing services for weddings and that’s just to start. When planning a wedding, it’s easy to get caught up in what you’re seeing on Pinterest or what friends are doing. The pressure can cause you to go way over budget, but the last thing a couple needs is to start a marriage with a lot of debt. Create a reasonable budget that you can keep. Avoid looking at what other brides are doing or have done, and focus on the things that matter to you as a couple. Request quotes from multiple vendors to compare prices and secure the best deal. You can also save by having your wedding during the winter (January, February and March. Only 9% of people have their weddings in winter.
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Buying an exercise machine.
You always start out with the best intentions. You want to get healthy or get back into shape, and the best way you can think to do that is to have an exercise machine at home. Exercise equipment tends to be very large and not aesthetically pleasing. You may get tired of looking at it or it being in the way after a while. These machines can also be very expensive. If you haven’t worked out at home before, try taking online classes first. If you are motivated and continue to be dedicated to at-home workouts, you can decide to purchase equipment that’s right for you.
Summary
Some purchases are worth it and some aren’t. The key to being happy with a purchase is to think it through completely. Understand what making this purchase will mean for your finances and your lifestyle. Is it something that will enhance your life? Does it fit within your budget or can you payoff any debt within a reasonable amount of time? By taking time to think through a purchase, you will have less guilt and remorse.
If you need cash for a big purchase or to pay one off, Uprova.com can help. You can request a loan up to $5,000 to cover a wide range of expenses. If you are approved, you can receive cash in your account in as soon as one business day. Learn more about Uprova loans today.