Because not everything you buy has to be stocks, coins or index funds.
Nowadays, money gurus are obsessed with living a frugal life.
Their philosophy is that the less stuff they buy, the more money they will have to produce more money.
The problem I have with this lifestyle is that they see spending your own hard earned money as a sin. Like you can’t buy something just because you can’t make more money from that purchase.
I believe there should be a balance between everything you spend and save, so I found a way to spend everything I want without feeling guilty, which is *not* a good investment.
Here I’ll show you how to turn anything you want to buy into a good asset so you don’t spend money on things you can’t use to make more money in the future.
In each category, there are many products that people like to buy, even if they are used at a good price. Buying these products can help you have an asset that you can resell when you no longer want (or need) it without losing money.
In 2015, I bought two computers: Windows, which was not a popular brand with an i8 processor, 8GB ram, 1TB HDD for $800 and a Macbook mini with 4GB ram, 256GB HDD and a low-end processor for $400.
In 2020 I sold both, the Windows one for $250 and the Macbook mini for $300.
So the MacBook was a good investment even if it wasn’t the best because the price was pretty much the same over the years.
I bought my switch before the pandemic for $400 and in 2020 I was able to sell it for over $500 because people were crazy about them. Every game I’ve bought from this device has been physical instead of digital (they’re the same price, but you have to go to a store if you want physical), so I can resell it after I’m done playing it for the same price , which I bought it.
The point is, you don’t have to stop buying things you like just because they’re not an investment; you just need to choose the ones that you can easily sell when you don’t want to use them anymore.
Some classic vintage cars are worth more than new ones on the market. You can even go for a used car from a luxury brand if you know they are so popular that you won’t lose money on it.
For example, some 2017 Porsches have the same price as the last two years if you buy it used.
Cars are more expensive than ever in America right now. Any used car you bought from 2020-2021 can bring you profits if you sell it now. So you could buy a luxury used car if you wanted and not lose money if you sold it.
Also, most specific vehicles don’t retire as much as others. For example, used Honda, Toyota, Lexus, and Mitsubishi have been priced the same (or even more) over the past three years.
The key is not to buy it brand new and wait for low season when no one is buying cars (which is usually between May and September).
Most people, in order to save money, have the habit of buying cheap things.
However, this can be a problem if this item is not of good quality and you need it on a daily basis, because you will not benefit from it more than the quality of life it gives you.
For example, I always try to buy a high-quality phone from a popular brand. This helps me to use it for as many years as I want until I want to sell it, and I was even able to sell it without a problem.
I know a lot of people who would rather buy a $200-$400 phone, but every six months they have problems because the device has been dropped and broken the screen, or stopped working because it got wet.
Try that every thing you buy can be useful until you decide to get rid of it. Currently, many stores and markets buy any used items you have, from furniture, books and appliances to even clothes and shoes.
An item can always be an asset as long as it is fully functional.
There are many other products that you cannot resell, such as food, laptops, gym memberships, subscriptions, etc. But they can make you grow in other ways.
For example, a gym membership won’t set you back (unless you’re a professional trainer), but your health will improve. Same with food and books (it can make you smarter and you can apply those skills to be a better professional).
These products are investments because even if they don’t make you money directly, they can make you grow in a certain aspect of your life.
A simple example from my life is buying a physical notebook every year. It cost me $20, but some people would say there are plenty of free apps I could use for that.
However, I found that the physical one helps me to be focused only on the tasks I need to do (rather than an app on my phone where I can easily get distracted) and makes me earn money when I do a task indirectly.