One of the things we should be careful about is the big purchases we will make in our lives. Some of these things can be why we have major setbacks in our lives. Your big purchases can affect your life in a way that you might not envision until it affects you big time because a friend of mine is going through a similar mistake and he has tried his best to fix it but it is not working. I believe that this will only get worse because he simply put his money in the wrong place.
My friends wanted to save cost, he decided to build his house in a place that is very far from the city. he did not spend a lot of money buying land so as have money to build the house of his choice, even though that still cost a lot of money but after he finish the house, he realize that he has made a big mistake. After five years in the bush, the area is still undeveloped. He thought that in 3 to 5 years the area would have developed, but he was wrong. He’s trying to sell the house and nobody is buying because his business is not doing well at the moment. He is broke and the only asset he has nobody is buying it.
What about big pushes that decrease in value?
Some people buy things that are very expensive just to show off. People don’t buy such assets for the right reasons, people buy some assets just to impress others. At the end of the day when things change and they’re trying to sell some of these assets they are forced to hold onto them because their value has depreciated so much that selling them will not make any sense, and not only that this is bad as an Investment, It is also bad for you as a way to start up your life again.
Just like my friend who spent thousands of dollars on a house he can’t live in and a house that doesn’t have a resale value or people that end up buying very expensive things but the value depreciates rapidly are the same. These two types of big purchases are a waste of money. We must be careful when we are making choices like this because we might be laid off from our job or the kind of businesses we are doing that are giving us so much money might not be relevant in the future. We should put our money in things that retain value and also things that appreciate with time so that when the time comes that we are struggling our assets will be things that will depend on.
Think twice
It is always better to think twice when we are making big purchases in our life like buying houses, cars, and expensive things, we should always see it as if we may not get the opportunity again. It is true because you are making a lot of money now doesn’t mean you will be able to make a lot of money for the rest of your life. You must use this opportunity very well because in the future, our lives might depend on it.
