6 Things Young Adults Shouldn’t Purchase
Tags: University, College, Self, Students, Youngadult

6 Things Young Adults Shouldn’t Purchase

1. Car

Don’t buy a car unless you absolutely have to. RIP those who just bought a car right before the pandemic lockdowns. Cars could cost upwards of 10k+ a year for young adults. Car insurance is a big factor to consider especially if you live in the city. As a young adult in my early 20s if I were to drive I would be looking at 6k-8k a year for car insurance in the city. Plus, why would you need to drive a car if you live in the city? There should be a great transit system available. Car repairs can also break your wallet. They said to budget $100 per month or $1200 per year for car maintenance. That’s expensive for us who have just started our careers and aren’t in great financial shape. Another reason to not buy a car is that before the age of 25, your brain hasn’t matured yet. The frontal lobe is responsible for impulsivity control and isn’t fully formed until age 25. Having an immature brain behind a wheel can be dangerous which is why insurance is higher for us. Think about all those people who aren’t driving in the city. In my city, it’s 33% who don’t own a car! Join the group, don’t own a car while you’re still young as cars are liabilities. They will only make you poorer!

2. House

I know some of you are thinking about becoming a house owner. However, it still requires a lot of consideration even if you could afford it. Think about where you want to live five years down the road. The general rule is this, if you aren’t going to live in the same place five years down the road, don’t bother buying. You might think that the property value might go up so you’ll be raking in if you do decide to sell before the 5-year mark. Think again. There’ll be a closing cost when you buy and sell the property. Every year, there’ll be property taxes, mortgage, maintenance costs, utility bills, etc. For the first five years, you would be paying a lot more of the interest rather than the actual mortgage. You might end up losing money if you sell too early. If you’re thinking about maybe renting it out while you get another mortgage for another house? You may be able to afford less mortgage for your second property. Think about the location, sometimes it’s hard to predict but when something major happens it could drop the value of the house drastically. Something major could be, a murder nearby, a shooting, closed-down stores leading to lots of unemployment, etc. We can’t predict many of these major events but it’s something to take into mind when purchasing a home. Young adults tend to have more unpredictable career trajectories so don’t settle down too early as of yet.

3. Expensive furniture

Trust me, furniture gets broken during the moving process. Before you own a house, don’t purchase expensive furniture. Even if you do own it, there really is no need to purchase high-end furniture when you could be investing the money.

4. Expensive or frequent meals at restaurants

Dining out frequently can be expensive in the long run. Instead, learn to cook healthy meals for yourself. It makes you seem like a more attractive romantic partner and you get to save money.

5. Expensive clothes

There’s no need for expensive clothes for most of us young adults. Think about money in terms of the long game. Don’t buy it because it makes you appear wealthier. Use the money to actually make yourself become wealthier.

6. Latest iPhone and other digital gadgets

Look around at those people who are brandishing their newest phones and gadgets, most of them aren’t rich but they bought it as a status symbol. Just how many people are willing to forego their dinner for the month to be able to afford their new toys we don’t know but there are certainly people doing that because they care a lot more about their image than they should be. Don’t fall into the social media trap. It’s easy to fake being rich on social media. It’s smarter to use the money for other purposes rather than following a craze.