Beating Broke

Personal Finance from the Broke Perspective

10 Things You Should Never Buy New—We Did the Math

By Leave a Comment

things you should never buy new
Image Source: Pexels

Are you in the market for a big-ticket item, like a car or phone? Buying brand new may feel satisfying, but it often means overpaying for items that lose value fast. From furniture to tech, these new items can have hefty price tags. Here are 10 things you’re better off buying used. The savings really add up quickly.

1. Cars

A new car loses 20–30% of its value the moment you drive it off the lot. After five years, it’s often worth less than half. Buying a well-maintained used vehicle can save you thousands while still offering reliability. Many certified-pre-owned vehicles are in excellent shape. Plus, if you’re financing your car, you’ll have the ability to pay it off faster.

2. Textbooks

College textbooks can cost hundreds each semester. Used versions can cut that cost by 50–80%. Most students only need them for a few months anyway. Some universities even have textbook rental programs. You can usually find pre-owned books on Amazon, as well. Don’t throw away money by purchasing textbooks new.

3. Furniture

Gently used furniture often sells for a fraction of retail prices. Look for quality wood pieces, those hold up better over time than trendy flat-pack options. Even buying cheaper furniture new at discount stores like Ikea isn’t a smart investment. Many of these pieces will quickly break over time. Instead, buying used will get you a much better-quality item.

4. Tools

Power tools and equipment are frequently bought for one-time home projects and then sold barely used. You can save 30–70% on tools that still have years of life left. Many people sell used tools on Facebook Marketplace or other resale sites. You should also consider renting tools from stores like Lowe’s or Home Depot if you only need the equipment for one project.

5. Baby Gear

New baby gear can cost you thousands of dollars. Plus, babies grow fast. Things like strollers, swings, and bassinets are often outgrown within months. Buying secondhand can save new parents hundreds, without sacrificing quality. You can find open boxes and refurbished items on sites like Good Buy Gear or REBEL (formerly Rebelstork). Even asking friends and family for hand-me-downs is a smart idea.

6. Workout Equipment

Many treadmills, weights, and bikes become expensive coat racks. Lightly used gear can go for half, or less, of the original cost and function like new. Popular workout equipment, like Peloton, can even be rented. If you do choose to rent equipment, make sure that you aren’t paying more for the items over time than you would buy them upfront.

7. Luxury Clothing

Designer brands can depreciate like cars. Thrift or consignment shops often sell high-end pieces in near-perfect condition for a fraction of retail prices. Do your research before buying a designer piece. For example, some luxury handbags will retain their value or increase over time. For example, a Hermes bag might be a good investment. Don’t buy luxury without knowing the market and making smart choices.

8. Tech Gadgets

Last year’s phone or tablet model often works nearly as well as the latest one. Plus, it can cost 20–40% less when bought refurbished, or used. You don’t always need to buy the latest gadgets right away. Wait until they go on sale or there is an offer that makes sense for your finances.

9. Books and DVDs

Books and DVDs can be a waste of money when bought new. Most are read or watched once, then shelved. Used bookstores and resale sites offer them for pennies on the dollar compared to new. In addition, you can find most titles at your local library for free.

10. Recreational Equipment

Do you always buy recreational equipment new? Things like bikes, skis, kayaks, and tents can be very expensive. You can usually find better deals than buying these items new. People often try new hobbies, lose interest, and sell barely-used gear at major discounts.

Never Buy These Items New- Try Secondhand

Buying secondhand doesn’t mean settling. Really, it means spending smarter. With a little research, you can keep more money in your wallet without sacrificing quality or function.

Read More

How Much Money Do You Actually Need to Escape The Rat Race?

The Benefits of Putting Money Away for Potential Medical Expenses

7 Unexpected Expenses That Are Quietly Killing Your Retirement Fund

By Leave a Comment

Unexpected expenses that are draining your retirement fund
Image Source: Pexels

You’ve saved, planned, and dreamed of a stress-free retirement—but what if your nest egg is being drained without you even realizing it? Unexpected expenses can quietly chip away at your hard-earned savings, leaving you financially vulnerable in your golden years. From overlooked healthcare costs to inflation, these hidden budget busters can derail even the most careful retirement plan. Here are seven sneaky expenses that could be slowly killing your retirement fund.

1. Healthcare Costs

Even with Medicare, retirees face substantial out-of-pocket expenses. Premiums, co-pays, prescription drugs, dental, vision, and hearing needs all add up. Long-term care can cost tens of thousands annually and catch many off guard. As your health may decline, healthcare expenses, even before retirement, can erode your savings. It may be worth it to invest in a more robust healthcare plan if offered by your employer. You can also look into secondary insurance if your coverage isn’t adequate.

2. Helping Adult Children or Grandkids

Since the cost of living has increased and the job market has its ups and downs, many adult children need more support. Many retirees provide financial help to adult children or grandchildren. In fact, as many as 50% of Boomers are helping their adult Millennial and Gen Z children. Whether it’s paying for college, helping with rent, or covering emergencies, this generosity can significantly drain retirement savings, especially if it becomes ongoing. While many Boomers have felt the need to help Millennial children, it may ruin retirement funds.

3. Home Repairs and Maintenance

Owning a home during retirement comes with hidden costs. Aging roofs, broken furnaces, plumbing issues, or necessary upgrades can result in sudden, high expenses. Without a maintenance budget, these costs can derail financial plans. It may be more beneficial to find a condo where the HOA pays for some maintenance.

4. Inflation and Lifestyle Creep

Even modest inflation erodes purchasing power over time. A 3% annual increase may seem small, but it compounds. Pair that with lifestyle creep, like dining out more or traveling, and your retirement fund might not stretch as far as planned. Some people end up taking out personal loans or dipping into retirement funds early to cover these expenses. At some point, it becomes too late to save enough to retire on if overspending continues. A solid budget, where you don’t deviate, is imperative.

5. Taxes on Retirement Income

Retirees often forget that income from traditional 401(k)s, IRAs, and even Social Security may be taxable. Without tax-efficient withdrawal strategies, a significant portion of your income could be lost to the IRS each year. Make sure that you consult a tax professional so that you account for any tax implications.

6. Divorce or Separation Later in Life

“Gray divorce” is on the rise and can split retirement assets, increase living expenses, and lead to legal costs. Starting over financially in your 60s or 70s can drastically change retirement expectations. Many couples end up staying together, despite unhappiness, to be able to afford retirement. While this isn’t ideal, many couples just don’t have enough saved to weather a divorce later in life.

7. Scams and Elder Financial Abuse

Older adults are frequently targeted by scams, from phishing emails to fake investment schemes. In some cases, financial abuse comes from family members. These losses are often unrecoverable and emotionally devastating. Make sure that any trustees or anyone who has power of attorney is trustworthy. You may even appoint a third party, instead of family members, to avoid any elder abuse.

Managing Unexpected Expenses That Drain Retirement Funds

When preparing for retirement, it’s best to expect the unexpected. Having a solid plan, budgeting, and saving for the future is essential. Give yourself a healthy cushion, so that when expenses hit, you’re prepared for any unexpected expenses.

Read More

8 Little-Known Ways Landlords Are Still Getting Around Rent Caps

The Benefits of Putting Money Away for Potential Medical Expenses

The Benefits of Putting Money Away for Potential Medical Expenses

By Leave a Comment

Investing in a dedicated fund for potential medical expenses offers more than just financial readiness—it provides stability, reduces stress and ensures access to timely care. Health emergencies and routine treatments alike can strain budgets and disrupt operations if not anticipated. By setting aside resources specifically for medical needs, individuals and families can address unexpected costs without derailing other financial goals. A well-structured health reserve empowers you to make treatment decisions based on need rather than cost, fostering peace of mind and long-term well-being.

Peace of Mind Through Financial Preparedness

Knowing you have a cushion for medical bills alleviates anxiety about unforeseen treatments. Routine checkups, diagnostic tests and minor procedures can be covered without dipping into emergency savings or retirement funds. This proactive approach also helps avoid high-interest debt that often accompanies unplanned expenses. With dedicated funds, you can focus on recovery rather than worrying about mounting invoices, allowing you to prioritize health without sacrificing financial security.

Budgeting for Hair Loss Treatments

Hair loss affects a significant portion of the population at some point in life, and addressing it often involves ongoing costs for specialists, medications or procedures. According to the World Trichology Society, roughly six out of every ten women and 85% of men experience hair thinning or loss at some stage in their lives. By earmarking savings for potential dermatological consultations and treatments, you ensure that cosmetic or reconstructive options remain accessible when needed, maintaining confidence and quality of life.

Preparing for Dental Innovations

Advances in dental technology—from implants to cosmetic enhancements—can come with substantial price tags. As the dental sector expands, treatment options become more sophisticated but often costlier. According to Medical Device News, the dental industry is projected to grow by between 10% and 12% over the seven years following 2023, signaling both increased demand and evolving procedures. Allocating funds for preventive cleanings, orthodontic work or emergency care ensures you can take advantage of cutting-edge services without financial strain. 

Prioritizing Physical Therapy Access

Rehabilitation services play a crucial role in recovering from musculoskeletal injuries, and early intervention can yield better outcomes with fewer side effects. Studies show that clients who begin physical therapy within the first two weeks after a knee, back or neck injury significantly reduce their reliance on prescription painkillers. By saving specifically for outpatient services and therapy sessions, you support proactive recovery and minimize long-term medication costs, contributing to both faster healing and improved overall health. According to studies.

Leveraging Preventive Screenings

Regular screenings—such as mammograms, colonoscopies and cardiovascular assessments—are essential for early detection of serious conditions. These tests often require co-payments or out-of-pocket fees that can be burdensome if funds aren’t reserved. Setting aside money for annual exams encourages compliance with preventive care schedules, helping catch diseases in their most treatable stages. This strategy not only reduces treatment complexity but also lowers total healthcare spending by avoiding high-cost interventions later on.

Shielding Against Rising Medical Costs

Healthcare inflation outpaces general inflation, driving up the price of medications, specialist visits and hospital stays. When medical expenses rise faster than wages, unplanned treatments can overwhelm standard budgets. By designating a portion of income for medical savings, you create a buffer that adjusts to increasing costs. This financial guardrail prevents disruptions to essential services and protects other savings goals—such as education funds or retirement accounts—from being diverted to cover healthcare needs.

Building a Resilient Health Fund

Creating a dedicated medical expense reserve requires consistent contributions and periodic reassessment. Start by estimating annual out-of-pocket costs—premiums, deductibles and typical co-pay amounts—then set monthly saving targets. Automating transfers to a high-yield savings account helps maintain discipline while earning interest. Review your fund annually to account for changing health needs, family additions or plan modifications. A well-calibrated health fund evolves with you, ensuring coverage remains adequate over time.

Setting aside money for potential medical expenses is an investment in your future health and financial stability. By budgeting for treatments ranging from hair restoration and dental care to rehabilitation and preventive screenings, you empower yourself to make informed healthcare decisions without financial pressure. Dedicated medical savings safeguard against rising costs, support timely care and preserve other financial goals. Cultivating this resource ultimately enhances peace of mind, enabling you to focus on wellness and long-term prosperity.