Financial experts are asking you to think before splurging on four items next year. The top item not to buy is a brand-new car. Many advisors will tell you never to buy a new car, but in 2023 you should listen to this advice if you’re trying to cut back on spending. Auto industry experts say while inventory is increasing, there are still a low number of cars on the lot due to high prices. Prices continue to skyrocket because automakers are making more expensive cars. Analysts say the average cost of a new vehicle now sets a record of $46,382, which is up 2.5% from 2021.
A second thing not to waste your money on in the new year is SPACs. According to MarketWatch, special-purpose acquisitions companies were popular to buy during the pandemic. There were 613 SPACs on the U.S. stock exchange in 2021, compared to in the past when there had never been more than 100 SPACs in a single year on the market. Investors who bought SPACs saw losses of 37% on average per year.
A third thing to refrain from investing in is crypto. Financial experts say if you treat investing as an exercise in risk, it is important to realize crypto is all risk. The second reason to refrain from investing in crypto is there is no way to store it safely. There is no federal insurance covering exchange failures or enough cyber-theft protection.
If your hobby is virtual reality, buying Meta Quest headsets may have crossed your mind. However, purchasing the new Meta Quest two and Meta Quest Pro headsets may seem like a waste because of the reviews comparing the virtual headset to a 2007 Blackberry. It would be best if you considered waiting for Apple’s introduction to virtual headsets.
Last, consider other options before buying a Tesla if you plan to buy an electric car. Tesla has stood alone as the best option for e-vehicles. However, in 2023, many more options will be available at lower costs.
Overall, after many warnings of a possible recession, the goal is to save. Whatever you’re considering splurging on in the new year, weigh the pros and cons of it being worth the money.
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