4 of the Worst Investments You Could Make
We all like to think that we are good at spotting good investments. However, there are some bad investments that many people fall for all the time. These are simple ways to throw your money away and the following are some of the worst investments you could make.
A New Car That Loses Value Right Away
We all know that new cars lose a lot of value as soon as you put your foot on the accelerator and drive away from the dealership, right? Yet, it is still incredibly tempting to buy a new car, isn’t it? Sure, it would be fun to sit behind a brand new car and breathe in that intoxicating new car smell but is it worth it? In a financial sense, it makes no sense to buy a brand new car and immediately lose a big part of your investment (11% according to some sources) due to instant depreciation. Of course, if you have the money and really crave a car that has never been driven then there is nothing to stop you from doing so. However, at the back of your mind you are sure to have a nagging doubt that it is probably your worst investment ever.
A Timeshare No one Wants
I have to confess that I once almost bought a timeshare once. I was on holiday when a guy came up to me and gave me a scratch card. Against all the odds I won an amazing prize and all I had to do was go to a certain hotel in town to collect it. He even got a touristy horse-drawn carriage thing to take me and my partner there in style. I was a bit sceptical about the whole thing but we were on holiday, feeling relaxed and just going with the flow. To be fair, there was a bit of sangria swilling about inside me as well, which might have clouded my judgement. As soon as we arrived there they tried to hustle us into a room to give us the hard sell. We managed to wriggle our way out of there but it was a close call. Timeshare salespeople are famous for their heavy sales tactics. Why is this? Because as an investment timeshares suck. You would be better just paying for your accommodation every time you go away. A Timeshare makes no sense financially or in any other sense known to man. The free carriage ride was nice, though.
Miracle Penny Shares That Sink Without Trace
This point is a bit trickier than the last two. You already know that you will hardly ever make money on a new car or on a timeshare but isn’t there a chance you will do so on penny shares? Well, yes, it is possible. However, it is far more likely that the stock sinks without trace, taking your money with it. You see, penny shares cost so little for a reason. If they represented a good investment on a strongly performing company then they wouldn’t be selling for so little, would they? The only way you will make a lot of money on these stocks is to buy the right ones at the absolutely perfect time and then (in many cases) sell before they drop again. Now, what are the chances of that happening when so many other people are looking for miracle penny shares like these as well? That’s why they’re on my list of the worst investments you could make.
Fancy Jewellery That Isn’t Worth All That Much
You might think that fancy gold or silver jewellery is a smart investment. After all, these precious metals tend to rise in value pretty much all the time. However, when you buy a piece of fancy jewellery you aren’t paying only what the metal is worth. Most jewellery will lose value rather than gain it, no matter how nice it looks.
What are your thoughts on these investments?