8 Things You Shouldn’t Buy Until You Make at Least $100,000 a Year

While there’s no strict rule about what you should or shouldn’t buy based solely on your income, it’s generally a good idea to prioritize your financial well-being and make wise spending decisions, regardless of your income level. However, when you have a higher income, you may have more flexibility and resources to afford certain expenses comfortably. Here are some things that some financial experts recommend considering more carefully or postponing until you reach a certain income level:

1. Luxury Vehicles: High-end luxury cars come with substantial price tags not only for purchase but also for maintenance, insurance, and fuel. It’s wise to avoid splurging on luxury vehicles until you have a higher income that comfortably covers these ongoing costs.
2. Expensive Homes: While homeownership is a significant financial goal, purchasing a very expensive home with a large mortgage may strain your budget. It’s advisable to wait until you have a solid financial foundation and can comfortably afford the mortgage payments, property taxes, and maintenance costs.
3. Designer Clothing and Accessories: High-end designer fashion items can be incredibly expensive. Rather than accumulating a wardrobe full of designer clothing, consider saving and investing your money for long-term financial security. You can splurge occasionally, but it’s important not to let fashion purchases derail your financial goals.
4. Extravagant Vacations: While it’s essential to take time off and enjoy vacations, extravagant trips that stretch your budget might not be sustainable. It’s better to plan vacations within your means, and as your income grows, you can gradually indulge in more luxurious getaways.
5. High-Interest Debt: Before making extravagant purchases, it’s crucial to pay off high-interest debts, such as credit card balances. High-interest debt can quickly erode your financial stability and make it challenging to save and invest.
6. Investing in Risky Ventures: Investments can be an excellent way to grow wealth, but it’s essential to have a solid financial foundation before investing in highly speculative or risky ventures. Make sure you have an emergency fund, contribute to retirement accounts, and have a diversified investment portfolio.
7. Private Schools and Extracurricular Activities: While providing the best education and experiences for your children is important, private schools and extensive extracurricular activities can be costly. Evaluate these expenses in the context of your overall financial plan and priorities.
8. Overindulgent Hobbies: Hobbies and interests are essential for personal fulfillment, but some hobbies, like collecting rare items or participating in expensive sports, can become financially burdensome. Ensure your hobby spending aligns with your financial goals and priorities.

Remember that personal finance is highly individual, and what works for one person may not work for another. It’s essential to create a budget, set financial goals, and make spending decisions that align with your unique circumstances, regardless of your income level. Additionally, seeking guidance from a financial advisor can help you make informed financial choices and plan for a secure financial future.