9 things you should think twice about before purchasing

While you don't have to be a billionaire to purchase any of the items on this list, most of them are luxury items that usually only people in the upper tax brackets can afford. All of these expensive items however are things that you can do without regardless of your budget.

What follows, in no particular order, is a list of 10 things that you probably shouldn't buy...

1-Bicycles
This choice definitely deserves a caveat. For regular bikers an expensive bike is a great investment, if you live in the suburb but expensive bike thefts are on the rise in places like New York City.


2-Vacation Homes
The negative cash flow associated with vacation homes despite the potential for positive cash flow through collecting rent is reason enough to think twice about purchasing that exotic getaway.

Maintenance costs like insurance, utilities, marketing and other expenses will be a constant drain on finances if one does decide to purchase their future retirement home.


3-College Textbooks
After paying tens of thousands of dollars in tuition each semester to go to college it would be pretty silly not to do the reading for your courses. However, there are cheap alternatives to buying new books from your campus bookstore. Buying used books, renting them, or checking them out at the library could save a student (the parents) hundreds of dollars a semester.


4-Snowmobiles/ATVs/Jet-Skis
Unless you live somewhere where using a snowmobile on a daily basis is a necessity, then snowmobiles definitely fall into the 'rather rent than own' category.


5-Designer Denim
Designer jeans from brands like True Religion and Balmain can run you thousands of dollars, while denim from Levis that will last you years can cost under $100 and the quality of denim between the brands is pretty much the same.


6-Recreational Vehicles
Recreational Vehicles also fall into the 'better to rent than own' category due to the potential for a minimal lack of return on investment.


7-Extended Warranties
Most items like electronics already come with a manufacturer's warranty that covers most product flaws and malfunctions.


8-Boats
With the maintenance costs and upkeep being so exorbitant the old age saying is that the happiest two days in a boat owners life is the day he purchases the boat and the day he unloads it, is often proven to be true.


9-Time Shares
Besides the fact that it is often more cost effective to rent a time share than buy it, time shares come with a bunch of hidden costs, and owners should expect to lose 50% of their investment upon resale.