If you ask anyone what the worst investment is, majority of people will say “buying a new car.” I’m here to tell you why they are wrong. I’m not going to tell you why buying a car is a good investment (because it’s not), instead I’m focusing on “investments” that are worse.
I’m placing “investments” in parenthesis because I’m using the term loosely. These items are more consumption goods rather than investments. I would much prefer to place my money into a “depreciating asset” before I spend it wastefully on something which returns no value. It’s true that a car loses a large percentage of its value the second you drive it off the lot; but the below items retain no value – making them The 5 Worst “Investments”:
This shouldn’t take much explaining. Ever heard the saying “you booze, you lose?”
(*Do as I say, not as I do. I am drinking wine as I write this.)
The poor man’s tax. I like odds. The odds are against you here. Quit imagining what it would be like if you won. You’re not going to.
This might be a bit of a stretch, but I feel they’re a waste. Accompany the gift with a phone call, it’s cheaper.
When my mother passed away I was flooded with cards. Don’t get me wrong, they were sweet – but they were written by Hallmark. A year later, I’ve tossed all the cards but held on to one letter which was written on crumpled up notebook paper.
I’ve never smoked a cigarette in my life so I can’t relate to its stress-relieving powers; but spending money to smell bad, color your teeth, give yourself cancer, and defect your babies doesn’t seem worth it to me. It would be wiser to balance transfer $4000 to a 4000% credit card than smoke.
There are other ways to express yourself. It’s the only thing you can buy, that will cost you if you “return it.”
The point I’m trying to prove is that buying a car isn’t the worst financial decision you can make. If you agree with me, let me know. If you disagree, let me know in ALL CAPS.