Financial experts have loads of advice when it comes to saving money from crucial purchases. There are necessary purchases that however costly, we still deem them important because of the value they add to our statuses. The truth however is that we often spend lots of money on personal luxuries we often do not need or can do without, impoverishing ourselves in the process.
There are certain “important” purchases that are best excluded from our budget – because we spent huge money on them out of sentiments. According to Jeremy Straub, CEO of Coastal Wealth, it is always best to ask yourself, “Could I use this money on an experience that would last a lifetime?” before forking out good money on such purchases.
According to personal finance experts, we can always do wihtout the following purchases and more:
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Expensive honeymoon vacations
It is wonderful to enjoy the best honeymoon in Paris and Milan and Kenya among other exotic places. But couldn’t the same experience be had for $1,000 instead of the targeted $8,700? Rather than travelling abroad for expensive honeymoons, you could spend far less on a cruise ship or 5-star hotel in your capital city.
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Unlimited data plans
Internet companies reveal that the average mobile device user uses about 2.8GB of mobile data per month. Then why should you pay for 5GB or 10GB mobile data that you could never exhaust in one month? Rather than paying for mobile internet data that you won’t use, why not allocate the extra money elsewhere. In fact, some people are given free data each time they recharge their call credits, but they never use it all until it expires.
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Gourmet coffee at a coffeeshop
Why would you pay $10 for a coffee that would be made within minutes in front of you at a cafe, when you can make it yourself at home? Yet some people drink coffees everyday at shops and end up paying thousands of dollars per year when the coffee could be made at home for much less.
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Designer shoes and bags
What is the use of buying designer shoes and bags for thousands of dollars when you only wear them once or twice a year? Designer brands are useless in your bedroom, and they are worthless if you don’t wear them every day or week to win the attention you crave. But which social events deserve everyday attendance with designer shoes and bags? Virtually none.
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Latest smartphones
While you could unlock iPhone X with your face and even charge it wirelessly, are these features worth the $1,000+ the smartphone sells for when you could buy the iPhone 7 for $550 without the features? The truth is that people rarely use half of the features in their smartphones, yet pay astronomical amounts to purchase the phones. There is no point to buy latest versions of any phone if the currently one you have meets your basic needs. Do not forget that the pricey flagship of today will become an old model next year. Save the money for something else.
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Rolex and IWC watches
What is the point of paying through the nose for a Rolex or IWC watch when a smartwatch serves a better purpose? It is true that a Rolex watch is a status symbol, but smartwatches have stolen the show with their myriad usefulness. A smartwatch can do almost everything an Android smartphone can do, and costs far cheaper than a Rolex.
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Cable TV versus streaming TV
Gone were the days when cable TV was a necessity because of the hundreds of channels they offer. But subscribers rarely watch most of the TV channels yet pay for all. The better alternative today might be to subscribe to a streaming service since they are cheaper and you only pay for what you watch. You can save up to 65% paying for a streaming TV service than paying for a cable TV plan that you won’t watch.
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Heavy furniture
If you have to move your family each time you are transferred to a new city or state, then you might do without heavy and expensive furniture which you envisioned for an ideal home. Heavy furniture take a lot of space and they could be so pricey, but they are worthless if you are always moving from one city to the other.
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Valentine flowers
Valentine is around the corner and many lovers would be spending hundreds of dollars to purchase flowers. But the flowers lose value a few days after Valentine celebrations. Why not spend a quarter of that amount at a restaurant with your lover and cherish the experience forever?
