The Worst Financial Investments You Can Make
Be warned: investing in these items could leave you with more regret than cash!
Many financial guides will tell you about investments that are a good idea, but what about the bad investments that you should avoid?
All investments are not created equal, and there are some things that just do not make financial sense to purchase. These investments will not be worth the large price tag, and might actually make you lose money in the long run. Avoid them at all costs.
A New Car
It is not a good financial decision to borrow money to purchase an asset that will quickly depreciate. Brand new cars cost a lot of money, and they lose a huge percentage of their value as soon as you drive them off the car dealer’s property. When you buy a new car, you pay much more than you need for extras that will not add to the value when the car is resold. A real estate purchase will usually appreciate in value over the years, but when it comes to cars the opposite occurs.
Instead of buying a brand new car, purchase what you need and make the most of it. Go for a resale which is a few years old to still get a great car for a less expensive cost, as well as cheaper insurance fees.
Timeshares are a holiday property scheme where you buy shared interest in an apartment or condominium in your favorite sunny tropical getaway. You will “own” a fraction of the property and be able to use it for a few designated weeks of the year. Although the sales pitch will sound enticing on the surface, timeshares are rarely ever a good investment. Just like a new car, the value of a timeshare immediately decreases approximately 50% as soon as you take ownership. Also, most timeshares demand maintenance fees which can quickly add up over the years. It is a much better idea to save money for your holidays each year.
Get Rich Quick Schemes
Have you ever heard the expression that “if it sounds too good to be true, it probably is?” Remember this the next time that you see a website that promises to teach you how to make a fortune over the internet while sitting at home in your pajamas, if only you will purchase the introductory e-book for £79.99? These types of pyramid schemes and get rich quick scams prey on lazy people who think that they can make big money with little effort, and they are almost always not worth the investment.
Any Investment that You Don’t Understand
It is unwise to throw your hard earned money into anything that you don’t have a complete understanding of. There are so many different ways to invest your money, and some are more complex than others. If you don’t understand the type of investment you are choosing, you can be at risk for making bad decisions and losing money instead. Always do your research before bringing your money to the table.
These are a few of the worst financial investments that you can make, so avoid spending your money on these bad choices and keep your your hard earned cash in a savings account while you look for some profitable investments instead!