Beating Broke

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

July 17, 2025 By Teri Monroe Leave a Comment

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.

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6 Debt Traps That Seem Harmless—Until They Jeopardize Your Entire Identity

July 15, 2025 By Teri Monroe Leave a Comment

Many financial moves seem harmless. You may open a store credit card or use a buy now, pay later account. In the short term, these moves don’t have any consequences. But layer you could be regretting your choices. Here are 6 debt traps that seem harmless, until they jeopardize your entire identity, financial and personal.

1. Buy Now, Pay Later (BNPL) Services

Buy now, pay later services like Affirm and Klarna can get you into trouble quickly. No-interest payments split over weeks seem manageable. But multiple BNPL accounts can quietly accumulate, damaging your credit if missed. You may lose track of your obligations, and many BNPL services now report to credit bureaus. Falling behind can trigger collections, damaging your financial credibility and complicating future loan approvals or even job prospects.

2. Store Credit Cards with Special Discounts

Opening store credit cards can be a debt trap. It may seem harmless when you save 10–20% instantly on your purchase. However, these cards often carry high interest rates, usually 25% or more. Small balances can balloon, especially if you forget a payment. Plus, over-reliance on these cards can distort your credit utilization ratio, lowering your score and limiting your ability to qualify for more crucial credit, like mortgages and auto loans.

3. Minimum Payment Mentality

Paying the minimum keeps accounts in good standing, right? But interest compounds fast. You may take years to pay off small balances, especially on high-interest cards. You’re essentially stuck renting your lifestyle on borrowed money. Long-term, this undermines your financial autonomy and traps you in a consumer identity.

4. Co-Signing a Loan

Co-signing a loan may feel harmless, but it’s a debt trap. You may think you’re helping a friend or family member build credit or buy something they need. However, you are legally responsible if they default. Missed payments affect your credit score, too. Financially entangling your credit with someone else’s choices can lead to identity strain, especially when your name is used but you’re not in control.

5. Auto-Renewing Subscriptions & Services

Small monthly charges may feel negligible. Everyone needs multiple streaming accounts, right? But forgotten subscriptions slowly drain your bank account or rack up charges on your credit card. Living in a perpetual subscription economy can foster a false sense of financial stability while quietly reducing your spending flexibility and increasing dependence on credit.

6. “Lifestyle Inflation” After a Raise

You earned it. Why not enjoy a nicer car, apartment, or frequent dining out? If your spending rises with your income, savings remain stagnant. You might rely more on credit to sustain appearances. Tying your self-worth to external lifestyle markers can trap you in a cycle of debt and insecurity, constantly needing more to feel successful.

Debt Traps to Avoid

These debt traps often masquerade as harmless choices, but over time, they can erode your financial freedom, lower your credit score, and even reshape your self-image into one that’s dependent on debt. Awareness and proactive habits, like budgeting, tracking credit, and questioning purchases, are your best defense.

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

July 10, 2025 By Teri Monroe Leave a Comment

Escaping the “rat race” means reaching financial independence. This is the point where you no longer need to trade your time for money just to survive. True independence gives you the freedom to choose how you spend your time without being tied to a paycheck. The amount of money you need to achieve this goal depends on several key factors, including your lifestyle, expenses, and long-term plans. There is no single number that applies to everyone, but we will walk you through how to estimate your target and how to start building toward it today.

The Core Formula You Need

A popular method in the financial independence community is known as the 25x Rule. To use it, calculate your annual expenses and multiply that figure by 25. The result is the amount of money you need to have invested in order to retire or leave the workforce. This method is based on the 4% Rule, which suggests you can safely withdraw 4 percent of your portfolio each year without running out of money. For example, if your yearly expenses are $40,000, you would need $1 million invested to maintain your lifestyle indefinitely.

Calculate Your Annual Expenses

Start by tracking your spending over a few months to understand your actual annual expenses. Be sure to include essentials like rent or mortgage payments, food, transportation, healthcare, insurance, debt, and entertainment. Many people are surprised by how much or how little they truly spend. Once you know your number, you can begin budgeting or trimming costs to bring your goal within reach. If saving $1 million feels overwhelming, keep in mind that every dollar you cut from your yearly spending reduces your target savings by twenty-five dollars.

Customize for Your Lifestyle

Full retirement is not the only path to financial freedom. You can also consider semi-retirement, where you work part-time or maintain a side hustle to cover some of your expenses. This reduces the total amount of savings you need and allows for more flexibility. Another option is called geoarbitrage, which means moving to a country or city with a lower cost of living. This can dramatically reduce how much you need to escape the rat race. These strategies can give you more breathing room and make financial independence feel more realistic, even without a million-dollar portfolio.

Getting Out of the Rat Race

Your escape number depends on your lifestyle, location, healthcare needs, and whether or not you want to continue working in some capacity. Some people want to stop working completely, while others simply want the freedom to walk away from a job that no longer serves them. Either way, creating a personalized financial plan is essential. Track your expenses, define your goals, and choose an approach that fits your values. Escaping the rat race is not about getting rich. It is about gaining control of your time and living life on your own terms.

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